Posted by 101livescan on 8/11/09 8:18am
Msg #299490

TBW, Ocala, FL

Completely broke, can't cover the loans it currently has on the books. Who would have known. All the clients I signed up here on the Central Coast were stellar borrowers. Guess they lent to a lot of people for whom they looked the other way in underwriting.

http://www.ocala.com/article/20090811/ARTICLES/908111008/1001/NEWS01&tc=email_newsletter

In 2007, I worked for a RE attorney who bought up defaulted loans. He was looking at Colonial Bank, at the time I did not connect the two entities as being related.

Small world, it's getting smaller, we're going to see a lot of bank failures in the coming years. Only the fittest will survive.

Reply by MW/VA on 8/11/09 8:26am
Msg #299492

It's as we suspected, & the FL market is what impacted them. I think it's interesting that BOA is going to take over the existing loans. I suspected they were in the mix.

Reply by 101livescan on 8/11/09 8:30am
Msg #299494

Much to the FDIC's relief. They won't have to worry about that piece of the calamity. If you like Florida and want to live on the water, this is the perfect storm to go there and buy up whatever your heart desires. Properties are CHEAP!

Reply by MistarellaFL on 8/11/09 8:47am
Msg #299498

Cheryl: Colonial Bank

I read the article, but didn't see a correlation between TBW and Colonial, although I found a little info about it in a google search.
Here I sit waiting for docs for a Colonial loan today....is there more information out there that I haven't found? Has Colonial been shut down as well?

Reply by 101livescan on 8/11/09 8:59am
Msg #299499

Re: Cheryl: Colonial Bank

http://www.ocala.com/article/20090811/ARTICLES/908111008/1001/NEWS01&tc=email_newsletter

I'll send you something more current I saw recently about Colonial.

Reply by 101livescan on 8/11/09 9:05am
Msg #299500

Colonial Bank Probe by FBI

TBW had close ties with Colonial Bank.

Here's more updated information.

http://www.ocala.com/article/20090807/ARTICLES/908079993

Reply by MistarellaFL on 8/11/09 10:01am
Msg #299503

Thank you

Well, I had 6 pre-scheduled for Colonial this month.
I am guessing they are not gonna happen.
Shucks.

Reply by Becca_FL on 8/11/09 11:20am
Msg #299514

Bummer, Misty. n/m

Reply by MistarellaFL on 8/11/09 12:37pm
Msg #299521

Re: Bummer, Misty.

Big time bummer.
We were to start with these 6, and was expecting more.
August has started out really slow, and may be a bust for me due to the circumstances.

Reply by jba/fl on 8/11/09 11:01am
Msg #299512

August 10, 2009
As Colonial Bank lags, can Ayn Rand-inspired BB&T be waiting to buy?
What might be the fate of Alabama's struggling Colonial Bancgroup, parent of Colonial Bank with nearly 200 branches across Florida and some two dozen offices about the Tampa Bay area? Time may be short for action, though Colonial shares closed Monday at 53 cents, up four pennies. It leaves Colonial interim CEO Lewis Beville between a rock and a hard place. (Beville photo courtesy of Colonial.)

If Colonial fails, it will be the fifth largest bank failure in U.S. history.

In a bizarre action on Aug. 7, Colonial announced that the Alabama State Banking Department has given Colonial notice that it will meet on Aug. 12, to ask Colonial to consent to appoint the Federal Deposit Insurance Corp. as receiver or conservator of the company if and when the regulators deem such appointment necessary. Traditionally, the FDIC never shows it cards in advance, much less has state regulators ask a troubled bank for "consent" to hand it over to the feds.

Barron's reports that North Carolina's BB&T -- which recently began crowing its initials stand for "Best Bank in Town" -- might make a good buyer. Citing the analysis of Fox Pitt Kelton, BB&T is relatively healthy and may view the addition of Colonial into the BB&T fold as an opportunity too good to ignore. Says Fox Pitt Kelton:

"We assume that BB&T would be interested in acquiring Colonial if it is taken over by the FDIC and BB&T receives an adequate loss-sharing agreement."

What that means is that BB&T would wait for the feds to "fail" colonial and name the FDIC as receiver. Then a bank like BB&T would buy the remaining institution -- stripped of its worst assets -- for a modest sum.

We'll see what happens. BB&T's gotten a bit strange lately with a flurry of news reports focusing on BB&T former CEO (now bank chairman) John Allison's (shown with red tie in AP photo) philosophical tendencies.

In BB&T's hometown of Winston-Salem, the local Journal newspaper has long written about Allison's fascination with pro-capitalism thinker Ayn Rand. The late novelist's book Atlas Shrugged is eerily prescient, the Journal notes, with its depiction of a government takeover of private industry. This month, the New York Times explored the same ground with Allison.

Quite a back story if a BB&T-Colonial deal emerges. Who is John Allison?

-- Robert Trigaux, Times Business Columnist

Posted by Times Editor at 04:55:37 PM on August 10, 2009
in Bailout , Banks , BB&T , Colonial Bank , FDIC , Management , Recession | Permalink

Reply by 101livescan on 8/11/09 11:12am
Msg #299513

Good story follow on, Julie, as the vultures circle. I hope that BB&T is deemed a suitable suitor for this takeover/purchase. We need an infusion of good bank practices.

Reply by jba/fl on 8/11/09 12:20pm
Msg #299518

Interesting, don't you think, that the philosophy of the former CEO and now bank chairman is Ayn Rand follower:

In BB&T's hometown of Winston-Salem, the local Journal newspaper has long written about Allison's fascination with pro-capitalism thinker Ayn Rand. The late novelist's book Atlas Shrugged is eerily prescient, the Journal notes, with its depiction of a government takeover of private industry. This month, the New York Times explored the same ground with Allison.