Colonial BancGroup, a troubled Alabama-based bank with $26bn in assets, said it had received a search warrant from Treasury regulators that oversee the US bank rescue programme. Federal agents searched Colonial’s mortgage warehouse lending offices in Florida, the bank said, adding that it was co-operating with the investigation. The probe comes as Colonial scrambles to raise capital after a deal for a $300m cash infusion fell through.

This entry was posted by Gwen Robinson on Wednesday, August 5th, 2009 at 5:10 and is filed under Capital markets. Tagged with Colonial BancGroup. Edit this entry.