Friday Failures

Swinging her scythe far and wide this Friday, Ms. Bair took down the biggest bank so far this year and threw in four more just because she can. Here are the links:

Community Bank of Nevada, Las Vegas, Nevada

Community Bank of Arizona, Phoenix, Arizona

Union Bank, National Association, Gilbert, Arizona

Colonial Bank, Birmingham, Alabama

Dwelling House Savings and Loan Association, Pittsburgh, Pennsylvania

Colonial was the big story. BB&T out of Winston-Salem North Carolina bought the branches and deposits of Colonial. The story about this leaked out earlier today as it was a foregone conclusion that Colonial wouldn’t make it to the weekend.

The implosion of Colonial has been exceedingly swift and tied as it is to Taylor, Bean and Whitaker the large Ocala, Florida based mortgage banking company that shut its doors last week, there is probably a lot more to be written about here. Colonial was a major funding source for TBW as well as other mortgage banks. TBW was a major wholesale lender meaning it bought mortgages from much smaller mortgage brokers. Look for serious mortgage fraud investigations and I suspect prosecutions growing out of this incestuous alliance.

Just another day closer to recovery though, aren’t we?

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