Colonial goes under in biggest US bank failure of the yearColonial became the largest US bank to fail this year after it was declared bankrupt BANKRUPT. A person who has done, or suffered some act to be done, which is by law declared an act of bankruptcy; in such case he may be declared a bankrupt. 2. It is proper to notice that there is much difference between a bankrupt and an insolvent. and had the bulk of its assets taken over by rival BB&T, the government banking insurer said Friday. All of the Alabama-based Colonial's 346 branches will reopen re·o·pen tr. & intr.v. re·o·pened, re·o·pen·ing, re·o·pens 1. To open or be opened again: Officials reopened the airport after the snow was cleared. Schools reopen in September. Saturday "and operate as branches of BB&T," the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. (FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). ) said in a statement. "Deposits will continue to be insured by the FDIC," the agency said. After suffering no bank failures at all in 2005 and 2006, the US banking system saw three banks going under in 2007, followed by 25 in 2008. With its bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most Friday, Colonial became the 74th FDIC-insured institution to fail in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. so far in 2009 -- highlighting the extreme stress that the global financial crisis has placed on US banking institutions. As of the end of June, Colonial Bank's total assets were 25 billion dollars and its total deposits were some 20 billion dollars. While BB&T will obtain around 22 billion dollars in assets, the FDIC said it would keep the rest for later "for later disposition." FDIC Chairman Sheila Bair assured that while the last 18 months had put unprecedented strain on the financial system, the agency was performing as intended. "Today, after protecting almost 300 billion dollars in deposits since the current financial crisis began, the FDIC's guarantee is as certain as ever," she said. "The FDIC continues to stand by the nation's insured deposits with the full faith and credit of the US government. No depositor has ever lost a penny of their insured deposits." The FDIC said it estimated the transaction would cost the government's Deposit Insurance Fund 2.8 billion dollars. Colonial operated 346 branches in Alabama, Florida, Georgia, Nevada and Texas. 
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