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BofA Sues Colonial for $1bn
Aug 13, 2009The drama continues to unwind at Montgomery, Ala.-based Colonial BancGroup [stock CNB][/stock] after an investigation of its warehouse lending division last week. Charlotte, N.C.-based Bank of America [stock BAC][/stock] is suing Colonial for more than $1bn in cash and loans, according to industry reports. BofA alleges Colonial is holding the cash and loans as a custodian for commercial-paper vehicle Ocala Funding, which receives funding from Colonial.
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