Report: Colonial being sued for $1 billion

MONTGOMERY, AL - The bad news just keeps coming for Montgomery-based Colonial Bancgroup. According to the Birmingham News, Bank of America Corporation is suing Colonial for more than $1 billion in cash and loans.

The suit also asks a federal court to bar Colonial from selling or otherwise disposing of certain assets.

The bank announced Wednesday that it would not be able to provide the Securities and Exchange Commission with its second quarter financial report due to accounting irregularities.

The bank has admitted it doesn't know how much money it lost in the second quarter or 2009 and says it's not sure exactly how much money is currently has.

This news all comes just days after a federal raid on the bank's Orlando, Florida offices and the announcement the bank was under investigation.

Colonial says it is cooperating with the investigation and business at its area branches continue uninterrupted.

Stay tuned to and WSFA 12 News for the latest developments.