Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.