FDIC makes it official that BB&T taking over deposits of Colonial Bank

The FDIC just emailed the announcement that BB&T would be assuming all deposits of Colonial Bank. The closing of Colonial  Bank of Montgomery, Alabama had been leaked and reported in the financial media earlier today.

If you are a depositor at Colonial, you are completely protected by the FDIC since all deposits (about $20 billion) were assumed by BB&T.

BB&T is also purchasing about $22 billion of Colonial's $25 billion in assets.

The cost to the FDIC Deposit Insurance Fund (DIF) will be about $2.8 billion.

The decision to close the bank was made by the Alabama State Banking Department, which then appointed the FDIC as the receiver to tidy up the remains.

-- Jack Krupansky