The Colonial BancGroup, Inc.: FDIC denied right to setoff against demand deposit accounts

On January 24, 2011, the Honorable Dwight H. Williams, Jr. of the U.S. Bankruptcy Court for the Middle District of Alabama denied the Federal Deposit Insurance Corporation’s (“FDIC”) request for relief from the automatic stay in the Colonial BancGroup, Inc.

Filed under:
USA, Alabama, Banking, Insolvency & Restructuring, Litigation, Morrison & Foerster LLP, Bankruptcy, Debtor, Unsecured debt, Debt, Liability (financial accounting), Depository institution, Deposit insurance, US Securities and Exchange Commission, Federal Deposit Insurance Corporation (USA), US Code, United States bankruptcy court
Authors:
Barbara R. Mendelson , Alexandra Steinberg Barrage , Jeremy Mandell , Larren M. Nashelsky
Location:
USA
Firm:
Morrison & Foerster LLP
Americanwest Bancorporation: how a Section 363 sale in bankruptcy provides a viable recapitalization option for troubled banks

In the current economic environment, many banks have lost significant capital and are under immense pressure, regulatory and otherwise, to recapitalize. Failure to recapitalize within time frames set by bank regulators can result in a bank’s seizure by its chartering authority and an FDIC receivership.

Filed under:
USA, Banking, Derivatives, Insolvency & Restructuring, Morrison & Foerster LLP, Bankruptcy, Shareholder, Collateral (finance), Security (finance), Fiduciary, Debt, Investment banking, Holding company, Bank holding company, Collateralized debt obligation, Preferred stock, Leverage (finance), Federal Deposit Insurance Corporation (USA), Trustee
Authors:
Henry M. Fields , Kenneth E. Kohler , Barbara R. Mendelson , Alexandra Steinberg Barrage
Location:
USA
Firm:
Morrison & Foerster LLP