A federal criminal investigation is continuing into the activities of Colonial BancGroup, according to a report to Congress that was released on April 20th. The Special Inspector General for the Troubled Asset Relief Program issued its quarterly report, which mentions Colonial and SIGTARP’s investigation. The report described Colonial as the subject of an ongoing criminal investigation.
Montgomery-based Colonial Bank was shut down by the government in August and sold to BB&T Corp. Later that month, Colonial BancGroup filed for Chapter 11 bankruptcy protection. At least eight different lawsuits have been filed against the bank, which became the biggest U.S. bank to fail in 2009 and the sixth-largest in U.S. history. The failure of Colonial has hurt Montgomery since it was the only publicly-traded company with its headquarters in the capital city.
Source: Montgomery Advertiser
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