In-depth case study on Colonial BancGroup, provided in PDF format.
ABSTRACT: Our team produced a detailed case study to better understand how evolving dynamics in the broader mortgage market came to bear at one specific institution in the run-up to the financial crisis. Colonial Bank began as a small Alabama-based bank that expanded rapidly, in terms of geography and product offerings, in the two decades before the crisis. This growth strategy allowed the bank to take advantage of the seemingly insatiable demand for Sunbelt real estate development and the complex mortgage-backed financial instruments that funded it. However, Colonial Bank ultimately failed due to a combination of overexposure to commercial and construction lending and outright fraud.
