Feds Search Offices Of Colonial Bank And Taylor Bean

Posted by Orb Staff on August 04, 2009 No Comments
Categories : Residential Mortgage

l agents searched the Florida offices of Colonial Bank and wholesale lender Taylor, Bean & Whitaker Mortgage Corp. Monday in connection with a TARP-related investigation, according to media reports. Representatives from both companies have confirmed they received search warrants and say they are cooperating with the investigation, the [link=http://www.latimes.com/business/la-fi-tarp4-2009aug04,0,1591069.story][u]L.A. Times[/u][/link] reports. The search was performed by the special TARP inspector general, the Housing and Urban Development inspector and the Federal Bureau of Investigation. In March, the two companies announced an unusual agreement whereby a Taylor Bean-led group of investors would invest $300 million in Colonial. The injection was expected to enable Colonial to receive TARP funds, but the deal with Taylor Bean had fallen through. Last week, Colonial reported a second-quarter net loss of $606 million and indicated there was "substantial doubt" about the company's ability to continue operations. The Alabama State Banking Department and the Federal Reserve Board of Governors issued a cease-and-desist order to Colonial BancGroup that became effective July 22. SOURCES: [link=http://www.latimes.com/business/la-fi-tarp4-2009aug04,0,1591069.story]L.A. Times

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