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FDIC Puts Colonial’s Costly Issues to Rest, $2.8bn Later 

Aug 17, 2009By

Troubles appear to be winding down to an end for Montgomery, Ala.-based Colonial Bank after it agreed to an order to cease and desist and then saw its mortgage warehouse lending facility come under close inspection by federal agents. The Alabama State Banking Department on Friday closed Colonial Bank, which the Federal Deposit Insurance Corp. (FDIC) estimates will cost $2.8bn to its deposit insurance fund, HousingWire first covered this weekend.