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.
