Colonial hit with 2nd cease & desist order

Posted by: John Shryock - bio | email

MONTGOMERY, AL (WSFA) - Montgomery based Colonial Bankgroup has received a second cease and desist order from the Federal Reserve System and the Alabama Banking Department.

Merrie Tolbert with Colonial confirmed the information to WSFA 12 News a short time ago.

The bankgroup oversees the bank, which was hit with a similar order in June.

The new order instructs the bankgroup to make sure Colonial Bank complies with that first order issued by the FDIC.

Regulators have ordered the bank to increase capitol, decrease problem assets and diversify its loan portfolio.

Colonial says it is working to comply with the demands.

©2009 WSFA. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.