Shares of Colonial Bancgroup (CNB) Rise as $300M Injection Looks Promising

Shares of Colonial BancGroup (NYSE: CNB) are rallying this morning on the back of a promising WSJ article which cites sources saying that the regional bank could be close to agreeing on a deal which would inject $300 million in capital in the bank. An investment by Taylor Bean & Whitaker would also convert the company to a thrift, and also clear the way for $536 million in government aid.

The stock is currently about 9% higher, most recently trading at $1.08.

As the WSJ puts its, the private investment would mark "a nascent sign" that investors may finally be ready to start making investments in the extremely tumultuous financial sector. Could this be another green shoot?

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