Ex-Parent of Colonial Bank Sues BB&T for Return of $300 Million

WINSTON-SALEM, N.C., July 20, 2017 /PRNewswire/ — BB&T Corporation BBT, -0.16% today reported earnings for the second quarter of 2017. Net income available to common shareholders was a record $631.

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The Colonial BancGroup, Inc. We represent The Colonial BancGroup, Inc. (CBG) , the second largest savings and thrift failure ever. We represent CBG in litigation against the FDIC as receiver for Colonial Bank, CBG’s former banking subsidiary, and BB&T Corp. concerning ownership disputes over more than $650 million in assets.

The suit at issue grew from the 2009 collapse of Montgomery, Alabama-based Colonial Bank, which had invested roughly $300 million in nine residential mortgage. Colonial Bank was sold to Branch.

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Whittle argued that BB&T’s maximum recovery in chapter 7 would have been $2.2 million, the amount of BB&T’s claim at the time of foreclosure. BFP v. Resolution Trust Corp. in BFP , a partnership formed for the purpose of buying a home defaulted on its mortgage payments, resulting in a foreclosure by the bank.

“2013 has started with a bang in northern virginia real estate. fire Department and Office of the Sheriff at the 27th Annual Valor Awards held June 13 at the Crowne Plaza Hotel. Colonial Republican.

The seizure of Colonial’s roughly 350 branches and $26 billion in assets — the bulk of which were then handed over to BB&T (BBT, Fortune 500) of North Carolina — made it the sixth-biggest bank.