Regulators close Colonial Bank; assets sold to BB&T | ReutersColonial Bank, of Montgomery Ala., was shuttered on Friday and its assets sold to southeast regional bank BB&T Corp, marking the largest bank failure this year...
The failure of Colonial Bank, which had total assets of $25 billion, is expected to cost the Federal Deposit Insurance Corp's insurance fund $2.8 billion.
Colonial Bank was the third largest bank to fail since the collapse of the nation's housing bubble. The three largest bank failures since 2007 are:
Washington Mutual: $307.00 billion in assets
IndyMac: $32.01 billion in assets
Colonial Bank: $25.00 billion in assets
Following the closure of Colonial Bank, three additional banks were closed. That brings this year's figure for failed banks to 77. In 2008, 25 banks failed. In 2007, 3 banks failed. The total number of failures in the 2007-09 period has now risen to 105. Additional bank failures are highly likely in coming weeks.
Three states have 10 or more bank failures since the housing bubble burst during summer 2006: