The former parent company of Colonial Bank, which was seized by federal regulators last year, is battling with the Federal Deposit Insurance Corp. over the agency's $1 billion bankruptcy claim, the latest dispute between the agency and bank-holding companies.

The FDIC says the bank's former parent owes it more than $1 billion, an amount equal to the gap between how much capital its banking subsidiary was required to have and what it actually had on hand when it was seized by regulators.

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