Colonial BancGroup Agrees to Cease and Desist Order

Colonial BancGroup Inc., Montgomery, Ala., has consented to a cease-and-desist order from the Federal Reserve System and the Alabama State Banking Department. The order, Colonial said, is similar to one issued to its Colonial Bank subsidiary by the Federal Deposit Insurance Corp. and the state regulator. Under the agreement, the holding company has 30 days to submit to the Fed and state regulators a capital plan, 60 days to submit a liquidity management plan and 30 days to eliminate from its books by collection or charge-off all assets or portions of assets identified as "loss." Colonial, one of the leading warehouse credit providers, is in the midst of a pending transaction that would recapitalize the company with a consortium of investors including Ocala, Fla.-based mortgage lender Taylor Bean & Whitaker. TBW had no comment on the order.