July 15, 2009

A so-called "blank-check" company said it will acquire two Nevada community lenders in the largest such recapitalization of a bank in U.S. history.The move suggests a new form of financing that may be available for a troubled banking industry seeking new sources of capital to bolster balance sheets.

Most of the acquired assets came from Colonial BancGroup Inc (CNB.N), which has struggled as loan losses depleted capital. An analyst said the move could position the Montgomery, Alabama-based lender, which has about $26 billion of assets, as a candidate for a government-assisted sale.