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BIRMINGHAM, AL-The Birmingham News reports that Colonial BancGroup has raised $300 million from Florida-based Taylor, Bean & Whitaker Mortgage Co. to help the financial institution boost both liquidity and value. But the raise comes with a condition: Colonial must receive $540 million from the U.S. Treasury Department’s Troubled Asset Relief Program as well.

On the other side of the coin, those overseeing TARP said Colonial won’t receive the bailout money unless the bank finds an outside investor. The news article says it’s uncertain whether TARP or Taylor, Bean will pay up first, leading to a standoff.

If everything goes according to Colonial BancGroup’s plan, Taylor, Bean will become the majority shareholder in the company, which operates 351 branches in five states. This, of course, assumes that shareholders would agree, as the deal would require an issuance of new stock.

Read more about the proposed deal and Colonial BancGroup’s troubled recent past in the Birmingham News.

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