Ex-Parent of Colonial Bank Sues BB&T for Return of $300 Million

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The suit at issue grew from the 2009 collapse of Montgomery, Alabama-based Colonial Bank, which had invested roughly $300 million in nine residential mortgage. Colonial Bank was sold to Branch.

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The FDIC, which took over Colonial Bank in August 2009 and sold most of its holdings to BB&T Corp. BBT, +1.97% has appealed that ruling to the U.S. District Court.

WINSTON-SALEM, N.C., July 20, 2017 /PRNewswire/ — BB&T Corporation BBT, -0.16% today reported earnings for the second quarter of 2017. Net income available to common shareholders was a record $631.

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Whittle argued that BB&T’s maximum recovery in chapter 7 would have been $2.2 million, the amount of BB&T’s claim at the time of foreclosure. BFP v. Resolution Trust Corp. in BFP , a partnership formed for the purpose of buying a home defaulted on its mortgage payments, resulting in a foreclosure by the bank.

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