Colonial Bank looks set to become the sixth largest bank failure in corporate history after a federal judge ordered a freeze of its assets Friday.
The Montgomery, Alabama bank, has 355 branches throughout Florida, Alabama, Georgia, Nevada, and Texas, and has about $25 billion in assets.
Financial wire service Dow Jones reported that banking rival BB&T will buy Colonial’s deposits and branches, but not the loans and other financial assets it holds.
Colonial provided warehouse lending facilities to an estimated 70 Mortgage Companies and is 100 times larger than the typical bank to have failed this year.
BB&T, based in Winston-Salem, North Carolina, is also a regional banking power, with 1,500 branches across the Southeast.
Colonial has been reeling from a criminal investigation into accounting fraud and has been trading under a Temporary Restraining Order granted to Bank of America protecting $1 billion dollars in claim.
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