BUSINESS BRIEFING / BANKING

Times Wire Reports

Regulators have shut down Colonial BancGroup Inc., a big lender in real estate development that buckled under the collapse of the market.

It is the biggest U.S. bank to fail this year, with about $25 billion in assets.

The Federal Deposit Insurance Corp. was appointed receiver of Montgomery, Ala.-based Colonial.

The agency approved the sale of Colonial's $20 billion in deposits and about $22 billion of its assets to BB&T; Corp.

The failed bank has 346 branches in Alabama, Florida, Georgia, Nevada and Texas.

The failure of Colonial is expected to cost the deposit insurance fund an estimated $2.8 billion.

Copyright © 2019, Los Angeles Times
EDITION: California | U.S. & World
70°