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Regulators Want Guaranty Financial's Prospective Buyers To Submit Bids By Monday: FT

Citing people familiar with the matter, Financial Times reported that US banking regulators have asked prospective buyers of Guaranty Financial Group Inc. (GFG) to submit bids by Monday.

According to the report, The Federal Deposit Insurance Corp., or FDIC, is helping to manage the planned sale of Guaranty, the struggling Texas bank. Recently, FDIC had interfered in the sale of Alabama-based Colonial Bank to BB&T and initially wanted to arrange the sale of Guaranty before Colonial's, which is struggling under homebuilder loans and mortgage-backed securities, FT said.

However, Colonial's deteriorating credit quality and its role in two federal investigations were of concern of regulators and led to the sale. Regulators are said to be hoping that Canada's Toronto Dominion, JPMorgan and Spain's BBVA would step in as bidders for Guaranty.

The paper also said that at least one private equity consortium, including Blackstone, Carlyle, Oak Hill Capital, TPG and Gerald Ford is considering a bid for Guaranty.

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