Colonial Bank Gets The Friday Afternoon FDIC Hammer

This will surprise almost no one, but big government, known as the FDIC, has now taken over failing Colonial Bank and sold what’s left of it to Branch Banking and Trust (BB&T). No depositor will lose money. No word on what will happen to specific branches. See press release here. Question: Is it a good thing that government can do this?

4 thoughts on “Colonial Bank Gets The Friday Afternoon FDIC Hammer

  1. Actually, I for one, am happy to see a change. I have had business accounts at Colonial for a while now and began having problems with them, such as holding access to deposits I made, etc back in January. Important to note that even still to this day no item I deposited in their bank come back unpaid and these holds just began happening out of the blue starting Jan 1.

    It was a very frustrating ordeal and took nearly 4 weeks of constant phone calls, faxes, a certified letter and eventually a drive to their main regional branch in Orlando to straighten out. A 7-day hold on funds (especially when 99% of the checks were drawn on local banks where my clients confirmed they had cleared) really puts a pinch on a small business that relies on cashflow to pay its freelancers and contractors.

    All the while, the attitude of the banks management was that nothing was wrong and no-one had the authority to change it. At the time, I noted their stock was tanking and was convinced that the entire episode was an attempt to earn a few days extra interest on the funds I deposited. This was eventually sorted out and was blamed on a “computer profiling error” that took someone with a brain 45 seconds to fix.

    (Oh yeah, and then there was this little gem from back in April: http://twitpic.com/3qpli – that is what every bank customer wants to see as they drive to their local branch..)

    I know that where I bank is a matter of choice. I did move my personal accounts, but due to my merchant credit card processing and payroll it would have even been more of a hassle to move the business account than it was to go through all that. Although I do have to admit had the Orlando trip not fixed the problem that was the next step.

    Anyway, sorry for climbing on the soapbox here, just wanted to make the point that sometimes, change can be a good thing – and in cases such as this where the conduct may even be criminal (as I understand from recent news about Colonial) I am more than happy to let the Government step in. I learned firsthand that folks like you and I don’t matter.

    So in a kind of sinister way, I am happy now. I love Karma. Welcome, BB&T!

  2. Actually, I for one, am happy to see a change. I have had business accounts at Colonial for a while now and began having problems with them, such as holding access to deposits I made, etc back in January. Important to note that even still to this day no item I deposited in their bank come back unpaid and these holds just began happening out of the blue starting Jan 1.

    It was a very frustrating ordeal and took nearly 4 weeks of constant phone calls, faxes, a certified letter and eventually a drive to their main regional branch in Orlando to straighten out. A 7-day hold on funds (especially when 99% of the checks were drawn on local banks where my clients confirmed they had cleared) really puts a pinch on a small business that relies on cashflow to pay its freelancers and contractors.

    All the while, the attitude of the banks management was that nothing was wrong and no-one had the authority to change it. At the time, I noted their stock was tanking and was convinced that the entire episode was an attempt to earn a few days extra interest on the funds I deposited. This was eventually sorted out and was blamed on a “computer profiling error” that took someone with a brain 45 seconds to fix.

    (Oh yeah, and then there was this little gem from back in April: http://twitpic.com/3qpli – that is what every bank customer wants to see as they drive to their local branch..)

    I know that where I bank is a matter of choice. I did move my personal accounts, but due to my merchant credit card processing and payroll it would have even been more of a hassle to move the business account than it was to go through all that. Although I do have to admit had the Orlando trip not fixed the problem that was the next step.

    Anyway, sorry for climbing on the soapbox here, just wanted to make the point that sometimes, change can be a good thing – and in cases such as this where the conduct may even be criminal (as I understand from recent news about Colonial) I am more than happy to let the Government step in. I learned firsthand that folks like you and I don’t matter.

    So in a kind of sinister way, I am happy now. I love Karma. Welcome, BB&T!

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