Federal banking regulators blasted Taylor, Bean & Whitaker Mortgage Corp.'s "fundamentally flawed and ultimately meritless" bid to keep its mortgage-servicing business afloat by laying claim to accounts held at failed Colonial Bank.

The Federal Deposit Insurance Corp., the receiver for Alabama's recently shuttered Colonial Bank, says it — not Taylor Bean — has exclusive control over the bank's accounts. The mortgage lender maintained more than 100 accounts, holding about $1.9 billion, at Colonial.

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