FDIC Lambastes Schulte's Bid For Colonial Payday

Law360, New York (March 2, 2010, 6:54 PM EST) -- Attorneys at Schulte Roth & Zabel LLP have tried to soak the estate of bankrupt holding company Colonial Bancgroup Inc. with nearly $1 million in professional fees, including $130,000 for what should have been a day's worth of research, the Federal Deposit Insurance Corp. has alleged.

Schulte, which represents the official committee of unsecured creditors in the case, has billed about $974,000 for four months' work, an unjustifiable rate that continues to eat up the estate's cash, the FDIC said in a motion filed Monday in...
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