Colonial death watch

The situation grows worse for the Alabama bank. Bank of America (ticker: BAC) has sued Colonial Bank (ticker: CNB) for over $1 billion in loans and cash, according to this report. According to the AP, “The emergency relief is necessary because Colonial appears to be on the verge of collapsing as a going concern and has reportedly been the subject of a criminal investigation for alleged accounting irregularities,” the complaint said. Also, “Shares of Bank of America gained 83 cents, or 5.2 percent, to $16.76 in midday trading, while Colonial shares fell 3 cents, or 5.8 percent, to 49 cents.” You can read the report embedded below.