FDIC Appeals Loss In $905M Setoff Fight With Colonial

Law360, New York (September 14, 2010, 12:28 PM EDT) -- The Federal Deposit Insurance Corp. has appealed a bankruptcy judge's decision to deny its claim that bankrupt bank holding company Colonial BancGroup Inc. owes the federal insurer some $905 million as a result of prepetition capital shortfalls.

The FDIC filed a notice of appeal Monday in the U.S. Bankruptcy Court for the Middle District of Alabama, challenging a Sept. 1 ruling by Judge Dwight H. Williams that a memorandum of understanding between Colonial BancGroup and the Federal Reserve did not represent a hard commitment that made...
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