I do not know if this is related to the current banking crisis (FDIC Failed Bank List), but federal agents have raided Colonial Bank in Orlando, Florida. I will continue following this story to see if it develops into something bigger, but it appears that it may not have an effect on Colonial's day-to-day operations.
Unfortunately, if Colonial Banks fails, it is likely that the FDIC will not be able to cover the loss due to the high number of banks which have already failed this year. This is a scary thought, because it means that the FDIC guarantee stamped on the door at almost every local bank would be worthless and everyone could potentially lose any and all monies held by FDIC banks.
Source: WOFL FOX 35; Reuters; DailyKos
Federal agents working with the U.S. Treasury's Troubled Asset Relief Program (TARP) executed search warrants at two Florida banks on Monday and Colonial Bank (CNB.N) said one of them was its office in Orlando.
Unfortunately, if Colonial Banks fails, it is likely that the FDIC will not be able to cover the loss due to the high number of banks which have already failed this year. This is a scary thought, because it means that the FDIC guarantee stamped on the door at almost every local bank would be worthless and everyone could potentially lose any and all monies held by FDIC banks.
Source: WOFL FOX 35; Reuters; DailyKos
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