Colonial Bank's Suitor?

http://blogs.tampabay.com/venture/2009/08/what-might-be-the-fate-of-alabamas-struggling-colonial-bancgroup-parent-of-colonial-bank-with-nearly-200-branches-across-flo.html

A number of articles are pointing toward BB&T acquiring the troubled bank which had ties to Taylor, Bean & Whitaker.  A lot of bank signs around St Pete are different.  Stearns Bank just acquired First State Bank & one other courtesy of the FDIC.  BB&T would gain a huge presence should this come to fruition.

If Colonial bank gets their warehouse line pulled how many other lenders will fall is the big question.

Colonial had a meeting ppd today, but they [mgmnt of CB] believe they are insolvent.  Warehouse lines are probably not even on the radar.

Well, it is FDIC's to handle now.  BOA does not want to take any more lumps.  Probably BB&T still gets the deal.  BOA will get some kind of bone tossed its way.

Paul, according to the news section here you were right on the money about BB&T. The question now is whether they will honor Colonial's funding commitments to bankers, or if they back out of the warehouse lending business. Does anyone know if BB&T offered lines?

AC

Not sure what their business model is with respect to lines.  But, I am sure they will be examining all of Colonial's contingent loan agreements such as warehouse lines.  I do know they have correspondent and broker relationships, but I do not know how they operate them.