Fed issues cease and desist order to Colonial.
Global Banking News - 28 July 2009(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk
The board of governors of the Federal Reserve System has issued a cease and desist order to Colonial BancGroup (NYSE: CNB).
As part of the order, the bank has agreed to take certain actions that are aimed at solving its deteriorating financial condition and performance. The order has made it necessary for the bank to obtain prior written
approval of the Federal Reserve and state regulators before declaring or paying any dividends or making any distributions of interest or principal on subordinated debentures or trust preferred securities.
Colonial BancGroup has USD26bn in assets and operates in five states.
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