That was quick. On Wednesday, Bank of America and its counsel at Hunton & Williams sued Colonial Bank for $1 billion in mortgage loans that the beleaguered Alabama lender was holding in trust for a BofA subsidiary. On Thursday, Miami federal district court judge Adalberto Jordan granted BofA's motion for a temporary restraining order to keep Colonial from selling or otherwise disposing of 6,000 disputed mortgages.

A bad couple of weeks for the Alabama lender got worse Wednesday, when Bank of America accused Colonial of failing to pass on more than $1 billion in cash and assets to a commercial paper vehicle for which Colonial is the custodian. Acting for noteholders of the commercial paper business, BofA is demanding Colonial cough up the $1 billion.