A bank can end its relationship with a customer at any time, just as a customer can move to another bank at any time. A bank may decide to close a customer’s account because of how that person has been operating it, or because of regulatory requirements, or because the bank also feels the relationship has broken down.

Can a bank randomly close your account?

Your bank or credit union can freeze or close your account for any reason — and without notice — but some reasons are much more common than others, and you can take action to prevent or reverse the process.

How do banks track suspicious activity?

If banks suspect money laundering involving large sums of money, they must file reports on any illegal transactions. The reports come from a number of organizations that notify government officials of cash transfers that may include consumer theft, drug smuggling, organized crime, and other criminal activities.

Can a bank close your account for no activity?

Yes. Generally, banks may close accounts, for any reason and without notice. Some reasons could include inactivity or low usage.

When did Colonial Bank shut down in Orlando?

On Aug. 3, just 11 days before regulators shut down Colonial, agents raided the bank’s offices in downtown Orlando, where the warehouse lending was managed, and spent hours carting away boxes of documents.

What was the cost of the Colonial Bank collapse?

At an estimated cost of $2.8 billion to the Federal Deposit Insurance Corp., the Colonial collapse helped push the already depleted FDIC further into crisis mode. (In September, the FDIC proposed a plan to raise $45 billion to replenish its coffers.)

Who was the vice chairman of Colonial Bank?

In the past two years his 37-year-old son died suddenly from an aneurysm, his beloved 93-year-old mother passed away, and his longtime consigliere — a brilliant lawyer named Jack Miller who served as both Colonial’s primary outside counsel and its vice chairman — waged a losing battle with cancer that ended with his death in July.

What did Bobby Lowder do with Colonial Bank?

One thing that seems clear is that Colonial Bank, led by Lowder, binged on the real estate bubble probably as much as or more than any sizable bank in the country, making dozens of acquisitions to get into fast-growing markets such as Nevada, Atlanta, and especially Florida, and concentrating more than 85% of its loan portfolio in real estate.