Colonial Bancgroup cease and desist order

Colonial BancGroup has agreed to a cease and desist order with FDIC and the banking department.  Colonial agreed to oversight by the Federal Deposit Insurance Corporation and the Alabama Banking Department and other steps to fix problems with its financial condition and performance.

The bank is waiting for approval for an infusion of $300 million from a Florida investment group, which should make the bank eligible for federal TARP funds.

Colonial founder, Bobby Lowder announced his retirement recently.

A bank executive, Lewis Beville is quoted as saying this won't affect customer deposit accounts or loans.

In after hours trading since Wall Street closed Tuesday, stock is down 55% to 55 cents a share