The Real Deal Miami

Banks won’t wait to shed bad assets

September 30, 2008 12:25PM

Colonial BancGroup is one of many regional banks mired in the real
estate market collapse in South Florida and other states. It’s also one
of many trying to find its way out of the mess. The Montgomery, Ala.
bank set up a so-called “war room” in Florida, where bankers host
affluent individuals and real estate investors, personally showing them
available properties. Colonial, with assets worth $26 billion, is
hoping to minimize the discount it takes in selling real estate, mainly
42 residential projects valued at about $340 million. All but two of
them are in Florida, where much of the company’s balance sheet is based.