Colonial Bank's troubles deepen

MONTGOMERY, Ala. (AP) - Colonial Bancgroup has advised the Securities and Exchange Commission it will not be able to file a second quarter financial report because of alleged accounting irregularities now being investigated.

The Alabama Banking Department also confirmed Tuesday that its board held a private meeting with Colonial officials on Monday.

Agency and bank officials declined comment, but the meeting, previously set for Wednesday, was to ask for Colonial's consent to make the FDIC receiver for the bank if and when the state banking superintendent deems it necessary.

Colonial said in a statement Tuesday that because of the alleged accounting irregularities, it does not know how much money it lost in the second quarter or how much it has now.

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