Earlier today, Colonial BancGroup (NYSE: CNB) fell nearly 12% to 41 cents per share before trading was halted pending a news announcement. As it turns out, the troubled bank is being taken into receivership by the Federal Deposit Insurance Corp. (FDIC), while BB&T Corporation (NYSE: BBT) will acquire all of CNB's branches and deposits.

The announcement comes on the heels of a report in The Wall Street Journal (subscription required) that a federal judge has granted a temporary restraining order to freeze $1 billion of Colonial BancGroup's assets. The decision comes after Bank of America (NYSE: BAC) filed suit against CNB, seeking to protect its rights as trustee to $1 billion of loans received from Freddie Mac (NYSE: FRE). U.S. District Judge Adalberto Jordan ruled in Bank of America's favor, citing his concern that Colonial "is on the brink of collapse."

Continue reading Colonial BancGroup to be acquired by BB&T Corp.

Colonial BancGroup to be acquired by BB&T Corp. originally appeared on BloggingStocks on Fri, 14 Aug 2009 12:00:00 EST. Please see our terms for use of feeds.

Christine A. Varney heads up antitrust at the Department of Justice, and she's going hunting. She is the point person for a group consisting of the presidential administration and some Congressional Democrats that is looking to put the breaks on large companies in several industries.

Already, airlines have run into roadblocks when requesting relief from antitrust regulations. Varney & Co. are digging into complaints by AT&T (NYSE: ATT) and Verizon (NYSE: VZ) that cable competitors - e.g., Cablevision (NYSE: CVC) - have locked them out of the market for cable company-produced programming.

(Imagine that, a phone company complaining! Usually, they're the objects of derision.)

Continue reading Antitrust orgy coming: Airlines, tech and others in sights

Antitrust orgy coming: Airlines, tech and others in sights originally appeared on BloggingStocks on Mon, 27 Jul 2009 09:00:00 EST. Please see our terms for use of feeds.

Continental Airlines (NYSE: CAL) just got the relief it needs to compete. Despite resistance from the Department of Justice (which can only recommend), the Department of Transportation has granted the airline immunity from antitrust laws. This clears the way for Continental to work with United Airlines (NASDAQ: UAUA) -- and other carriers -- on international routes. Now, the airline can join Star Alliance, which already has antitrust immunity.

At the same time, DOT approved a joint venture among Continental, United, Lufthansa (OTC: DLAKY) and Air Canada. This new relationship would involve trans-Atlantic routes.

Continue reading DOT overrides Justice, Continental Airlines wins antitrust relief

DOT overrides Justice, Continental Airlines wins antitrust relief originally appeared on BloggingStocks on Mon, 13 Jul 2009 14:20:00 EST. Please see our terms for use of feeds.

The Wall Street Journal is reporting that the U.S. Department of Justice has begun a preliminary review of potential anti-competitive practices among large telecom companies such as Verizon Communications Inc. (NYSE: VZ) and AT&T Inc. (NYSE: T).

One area the Justice Department may investigate is whether wireless providers are hurting small competitors by tying up popular phones with exclusive agreements. Think AT&T as the exclusive provider of service for Apple Inc.'s (NASDAQ: AAPL) iPhone in the U.S.

Continue reading U.S. Justice Department turns an eye on the telecoms

U.S. Justice Department turns an eye on the telecoms originally appeared on BloggingStocks on Mon, 06 Jul 2009 18:00:00 EST. Please see our terms for use of feeds.

Continental Airlines (NYSE: CAL) is seeking immunity from antitrust laws to work more closely with United Airlines (NASDAQ: UAUA) and others on international routes. And, since airlines operate in a state of seemingly perpetual turmoil, what's the harm? According to the Justice Department: plenty.

The airline sought broad immunity as part of an effort to join Star Alliance, which includes US Airways, Lufthansa (OTC: DLAKY), and Air Canada -- along with United. Continental believes that it needs to join Star Alliance in order to remain competitive, especially with airlines that have this type of immunity already.

Continue reading Justice Department pushes back on Continental immunity request

Justice Department pushes back on Continental immunity request originally appeared on BloggingStocks on Tue, 30 Jun 2009 08:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that an alliance of cable, Internet and chip titans will announce plans to invest $3.2B in a company that will deliver Web access for laptops and cellphones using WiMax. The venture, valued at over $12B, includes Sprint Nextel Corporation (NYSE: S) and Clearwire Corporation (NASDAQ: CLWR) and will be backed by Comcast Corporation (NASDAQ: CMCSA), Time Warner Cable Inc (NYSE: TWC), Intel Corporation (NASDAQ: INTC) and Google Inc (NASDAQ: GOOG).
• According to people familiar with the matter, Robert Verrone, one of the most zealous commercial real-estate lenders during the industry's boom, will leave Wachovia Corporation (NYSE: WB) within the next week, the Wall Street Journal reported.

• Bloomberg reported that the Department of Justice is probing whether UBS AG (NYSE: UBS) helped clients evade American taxes. In an e-mailed statement, the firm said one senior bank employee was "briefly detained" by authorities.
• Bloomberg also reported that Vallejo, California's city council voted to go into bankruptcy. Officials said that after talks with labor unions failed to win salary concessions from police and fire fighters, the city does not have enough money to pay its bills.
• According to a rumor, TechCrunch reported that the Yahoo Inc (NASDAQ: YHOO) board of directors yesterday authorized Yahoo chairman Roy Bostock, rather than CEO Jerry Yang, to call Microsoft Corporation (NASDAQ: MSFT) CEO Steve Ballmer about re-starting negotiations.

Newspaper wap-up: Tech firms to invest in wireless originally appeared on BloggingStocks on Wed, 07 May 2008 08:05:00 EST. Please see our terms for use of feeds.

WellCare Health Plans, Inc. (NYSE: WCG) lost its CEO, CFO and general counsel on Friday. The company is currently under investigation for irregularities in Medicaid and Medicare billings in Connecticut and Florida. The SEC has requested information, as has the U.S. Department of Justice. Agencies are investigating whether WellCare overbilled for mental health care provided as part of Florida's Medicaid program. WellCare also has a subsidiary in the Cayman Islands. Investigators are looking into whether reinsurance arrangements through that subsidiary led to misrepresentations of costs for providing care. WellCare has not yet filed papers with the SEC for the previous quarter and will be late filing its annual report. Earnings reports for the first several quarters in 2008 will also be late.

Given the background of problems, some of which might prove very expensive to correct, why have investors bid up the stock over 11% on the news that a new management must soon take over? The stock closed on 28 January at $48.08, up $4.96 or 11.5% (though on the 29th it dipped slightly back to $47.18). Go figure!

WellCare Health Plans jumps up on bad news originally appeared on BloggingStocks on Tue, 29 Jan 2008 18:20:00 EST. Please see our terms for use of feeds.

Justice Department probes chocolate makers originally appeared on BloggingStocks on Fri, 21 Dec 2007 12:33:00 EST. Please see our terms for use of feeds.

Alberto Gonzales, probably the most incompetent and unpopular attorney general in history, resigned today effective September 17. This move is long, long overdue.

The Bush Administration is so out of touch with the American Public that it's frigtening. The anonymous official who leaked the resignation to the New York Times said, "The unfair treatment that he's been on the receiving end of has been a distraction for the department."

Oh brother.

People who are worried about negative publicity shouldn't do negative things.

Continue reading Alberto Gonzales should have quit long ago

Alberto Gonzales should have quit long ago originally appeared on BloggingStocks on Mon, 27 Aug 2007 11:10:00 EST. Please see our terms for use of feeds.