Colonial BancGroup Inc. became the largest bank failure this year after the Federal Deposit Insurance Corporation seized the struggling Alabama-based lender Friday and sold it to BB&T Corp.

The President announces that 10 banks will repay their Troubled Asset Relief funds, and commits to new legislation codifying the Pay-As-You-Go principle, reports the White House.

The U.S. economic chief is expected to announce a new plan Monday to help banks get rid of the toxic assets that are clogging the financial system.

Citigroup and Bank of America are fearful of bank nationalization. According to CNN Money, both banks have nationalization concerns and are seeing negative returns in the stock market, "...shares of Citigroup and Bank of America [are] down to 52-week lows. Shares of Citigroup recently recovered were down 20% at $2.01, while Bank of America shares have fallen 10% to $3.52."

The FBI is investigating IndyMac IDMC.PK for likely fraud concerning home loans availed to dicey borrowers. Citing an anonymous law enforcement official, the Associated Press on Wednesday reported that mortgage lender IndyMac has been included in the FBI’s list of possible companies involved in corporate fraud.