Colonial Sues FDIC Over Tax, Property Proceeds

Law360, New York (March 5, 2010, 5:50 PM EST) -- Bankrupt bank-holding company Colonial Bancgroup Inc. has smacked the Federal Deposit Insurance Corp. with two adversary cases over tax returns, property and insurance proceeds it says belong to its Chapter 11 estate, not to the federal receiver.

The cases, filed on Thursday and Friday in the U.S. Bankruptcy Court for the Middle District of Alabama, claim that Colonial Bancgroup is entitled to federal, state and local tax returns for subsidiary Colonial Bank but that the bank-holding group hasn't been allowed access to books and records....
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