Colonial Bancgroup Defeats FDIC Attempt to Assert $905 Million Priority Claim
In a ruling that could have a significant impact on proceedings
involving failed banks, the Federal Deposit Insurance Corp. has been
rebuffed in its attempt to assert a $905 million priority claim against
the holding company of the failed Colonial Bank. A federal bankruptcy
judge in Alabama has ruled that the bank's bankrupt holding company,
Colonial Bancgroup, could not be held liable for the shortfall in the
bank's assets.
