Financially troubled Colonial BancGroup confirmed federal agents raided its Orlando branch Monday with a search warrant.
The company, which has 355 branches in Florida, Alabama, Georgia, Texas and Nevada, said agents with the U.S. Treasury's Troubled Asset Relief Program executed a search warrant on its Mortgage Warehouse Lending Division but would not disclose what the agency was seeking.
A spokeswoman for TARP's inspector general said agents from her office, the FBI and Housing and Urban Development inspector general conducted the search Monday.
In a written statement, Kristine Belisle declined to release further information, citing the ongoing investigation.
Colonial is Florida's sixth-largest bank. A recent deal to inject fresh capital into the Montgomery, Ala.-based bank failed, prompting it to raise doubts about its ability to stay in business.
Colonial and Taylor, Bean & Whitaker Mortgage Corp. of Ocala terminated a plan late Friday for Taylor Bean to invest $300 million in the bank.
The Sarasota Herald-Tribune reported that regulators had failed to approve the deal by Friday's deadline. Colonial needed the funding to qualify for $550 million in TARP money.
In its second-quarter report on Friday, the company said it was exploring several alternatives, including a sale or merger of the company, selling off bank branches and seeking private capital. The company reported a quarterly loss of $608.3 million, or $3.02 a share, compared with a loss of $9 million, or 5 cents a share, a year ago.
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