Colonial Bank

(Newser) - Lee Farkas, the founder of what was once one of America’s largest mortgage lenders, has been convicted of fraud in a huge scheme to bilk investors with bogus mortgages. Prosecutors said Farkas had orchestrated a plot in which the firm he chaired, Taylor, Bean & Whitaker, secretly overdrew Colonial...

(Newser) - Alabama's Colonial Bank has collapsed in the sixth-biggest bank failure in American history, the Wall Street Journal reports. The lender, which had assets of $25 billion and 346 branches in five southern states, was an aggressive mortgage lender in overheated markets like Florida, and its failure will cost the FDIC ...