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BB&T (BBT +9.4%) assumes all deposits of Colonial Bank (CNB), closed by Alabama regulators...

BB&T (BBT +9.4%) assumes all deposits of Colonial Bank (CNB), closed by Alabama regulators in the year's 74th - and biggest - bank failure. The 346 branches reopen as BB&T under normal business hours tomorrow. A loss-share transaction on $15B in assets limits the cost to the Deposit Insurance Fund to an estimated $2.8B. Colonial had total assets of $25B.
Comments (4)
  • Mark54
    , contributor
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    Assuming this takes BBT out of the market for a major failure, who is left as a major consolidator for the 10bn+ banks that fail here forward? The universe of consolidators is shrinking. The FDIC may be soon revising its stance and begging private equity to reconsider.
    14 Aug 2009, 11:11 PM Reply Like
  • Mark54
    , contributor
    Comments (164) | Send Message
     
    oh yeah and that is 2.8bn.... billlllion!
    14 Aug 2009, 11:12 PM Reply Like
  • billddrummer
    , contributor
    Comments (1670) | Send Message
     
    The FDIC will have to explore consortium type bank rescue packages, with the insurance fund, other banks, private equity holders and hedge fund managers stepping up to the plate, with the idea that maybe, someday, some time, the investors will get to make some money on their bet.

     

    Or else, just let the government bail out everybody who's bigger than Colonial.
    15 Aug 2009, 12:58 AM Reply Like
  • Anthony Alfidi
    , contributor
    Comments (598) | Send Message
     
    Any sell-side analyst bullish on banks has some explaining to do after news like this.
    15 Aug 2009, 12:35 PM Reply Like
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