FDIC Asks To Delay Hearing On $38M Spat Over Bank

Law360, New York (January 13, 2010, 5:17 PM EST) -- The Federal Deposit Insurance Corp. has filed an emergency motion to delay a hearing into a $38 million battle with bankrupt bank holding company The Colonial BancGroup Inc., saying it needs more time to put together a response.

On Feb. 4 the U.S. Bankruptcy Court for the Middle District of Alabama is slated to hear Colonial BancGroup's summary judgment arguments against the FDIC, which wants to apply the company's money to losses incurred in the failure of its bank, Colonial Bank.

The court has given the...
To view the full article, register now.