UPDATE: Colonial BancGroup, Taylor Bean and Freddie Mac-who could have seen this coming?

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Aug. 7: Colonial BancGroup

. Seems that on "August 6, 2009, it was informed by the U.S. Department of Justice that it is the target of a federal criminal investigation relating to the Company's mortgage warehouse lending division and related alleged accounting irregularities."


And furthermore:

Any bets on when that might be necessary? I got Aug. 13.

To recap: Colonial Bank supplied much of the money lent by Taylor Bean & Whitaker, which then serviced the loans and/or sold them to Freddie Mac, one of the two big government-backed mortgage companies. So some of the loans stayed on Colonial's balance sheet, and now Colonial is doomed. So, you ask, what about those loans Freddie bought?

Aug. 10: Freddie Mac says losses from Taylor Bean & Whittaker




On a historical note, TBW

securities issuer, with a

relationship to the GSE. My favorite is this May 2008

claiming (and I quote), "Freddie Mac recognized TB&W in a public ceremony last week as their number one lender in affordable housing products, which is consistent with our commitment to help all borrowers realize the dream of homeownership."

Reminder: The above is what neighborhood

leads to.