With the deal, Jones Lang would be entrusted to effectively manage the day-to-day tasks related to the operations across SunTrust’s facilities. SunTrust operates an extensive branch and ATM network throughout Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia and Washington, DC. Jones Lang’s leading position in property and corporate facility management services would enable it to improve the operational efficiency of SunTrust.

On the other hand, the deal strengthens Jones Lang’s position in the market and offers it an expanded role in the operations of one of the largest banking organizations of the country. Jones Lang is a leading full-service real estate firm that provides corporate, financial, and investment management services. The company caters to corporations and other real estate owners, users, and investors worldwide.

Currently, Jones Lang provides property and corporate management services across a worldwide portfolio of 1.4 billion square feet. Its investment management division, LaSalle Investment Management is one of the largest and most diverse companies in the real estate market and has over $46 billion of assets under management.

Bank of America filed the lawsuit at a federal court in Florida, asking for a temporary restraining order prohibiting Colonial from using the proceeds it received from Freddie Mac for buying mortgage and other loans owned by Ocala Funding LLC.

Bank of America was the collateral agent for the Ocala Funding loans and Colonial held them as custodian, agent and bailee. On the whole, Bank of America was a trustee to parties that provided financing for Colonial's mortgage business.

On Thursday, the court decided in favor of Bank of America and ordered Colonial to freeze $1 billion in assets.

Colonial appears to be on the threshold of collapsing as a going concern and has reportedly been subject to criminal investigation for alleged accounting irregularities. The lawsuit is an additional concern for Colonial as it will face further financial trouble.

According to the Colonial management, the company will not be able to file its second-quarter financial report as alleged accounting irregularities now being investigated. The company has informed the Securities and Exchange Commission to this effect.

The Alabama State Banking Board is expected to ask Colonial for permission to allow the Federal Deposit Insurance Corporation (FDIC) to take it over. If the bank fails, the FDIC would find a new owner for it as quickly as possible. If Colonial collapses, it would be the largest bank failure this year. Its potential buyers include BB&T Corp. (BBT) and SunTrust Banks Inc. (STI).

Regions Financial Corp. (RF), Comerica Inc. (CMA) and ZION Bancorporation (ZION) reported losses in the quarter primarily due to continued strain in their loan portfolios, as the commercial sector continues to droop in the prolonged recession.

Along with continued losses in their residential mortgage, home equity and consumer loan portfolios, these banks are also showing continued distress in their residential and commercial development loans, as well as commercial real estate loans.

Large-cap center banks and brokerage firms like Goldman Sachs (GS), Bank of America (BAC) and JPMorgan Chase (JPM) were able to somewhat offset weak credit metrics by strong results in their investment banking and mortgage refinancing divisions.

Regional banks, however, are much more directly connected to the state of the economy and the interest rate spreads. Weak demand for lending as a result of a shaky economy can severely affect their profitability as borrowers, thereby increasing nonperforming assets.

The mounting credit concerns suggest that a majority of the regional banks reporting their earnings in the coming week will report losses. Banks reporting this week are Fifth Third Bancorp (FITB), Huntington Bancshares Inc. (HBAN), PNC Financial Services Inc. (PNC), SunTrust Banks, Inc. (STI), KeyCorp (KEY) and US Bancorp (USB).

Though commercial loan losses are seen as the final stage of a downtrend in a credit cycle, it still remains to be seen just how severe it turns out to be.

The alternative proposal, put forth by a diverse group that includes non-profit, for-profit and state-based service providers and guaranty agencies seeks to enhance the Administration’s plan to better serve students, families, schools, and taxpayers. The plan also aims at retaining a significant role for private lenders in the student loan market.

The Administration’s plan is framed to provide certainty that funding will be available to students and save nearly $90 billion over the next decade by ending unnecessary public subsidies paid to banks. It would use the freed up resources to partially cover the cost of a permanent increase in grants for students from lower-income families.

Consequently, this would end all private originations of student loans and use only a small panel of financial firms to service all student loans in the future.

The alternative proposal, however aims to allow individual colleges to maintain panels of private sector and not-for-profit lenders that would originate and service loans. Firms would be paid an annual fee by the Treasury for servicing the loans. An existing default fee of 3% that servicing firms must pay to the federal government in the event of a student defaulting on a loan would continue, which would raise revenue for the Treasury.

The Obama plan would end the private players’ role in loan origination. There is much doubt that this will generate any significant savings. However, it would needlessly end an income stream for banks at a time when they are suffering through a severe economic downturn.

Student lenders do not make significant earnings off these loans, but do get the opportunity to strike up relationships with students to cross-sell other financial products longer term, especially when they start earning later on.

The supporters of the plan argue that the Student Loan Community’s plan will help generate the same or greater budget savings as the President’s plan; and at the same time avoid significant transition risks from switching loan origination systems on more than $50 billion of private-sector-originated loans at some 5,000 schools. The proposal will ensure sufficient choice and competition in the marketplace, leading to innovation, superior customer service and lower defaults.

The proposal is being supported by Sallie Mae, Citigroup’s (C) subsidiary Student Loan Corp. (STU), PNC Financial Corp. (PNC) and SunTrust Banks Inc. (STI), along with a large group of not-for-profit lenders, regional banks and guaranty agencies.

The company is required to raise $2.2 billion of equity capital to withstand headwinds in case the economy worsens.

SunTrust has sold about $260 million of its $1.25 billion "at-the-market" offering that was announced last month. However, that offering is now suspended and likely to be terminated after the $1.4 billion sale is completed.

SunTrust plans to use the proceeds from the $1.4 billion public offering to buy back up to $1 billion in preferred and hybrid shares. SunTrust also aims to raise $300 million of common equity from the sale of investments.

With this move, the Atlanta-based lender stepped closer to its plans of repaying the $4.9 billion it had received under the Troubled Asset Relief Plan (TARP).

Shares of this Zacks #3 Rank ("Hold") company are down more than 2% today, and moving on lower-than-normal volume of 9.5 million, compared with the daily average of 18 million.

The fund primarily invests in municipal securities, the interest from which is exempt from federal income tax, including the federal alternative minimum tax. It seeks to maintain an average portfolio maturity of between 3 years and 10 years.

The fund declares dividends every business day and pays it on the last business day of every month. Capital gains are distributed annually. The fund has an expense ratio of 0.48%.

Schwab Financial Services (SWFFX) was incepted in July 2000. The fund seeks long-term capital growth by investing primarily in equity securities issued by companies in the financial services sector.

The fund generally invests in U.S. companies and may invest in companies of all sizes. It may also invest in futures contracts. As of March 2009, its portfolio turnover was 59%.

The fund's key holdings include J.P. Morgan Chase & Co. (JPM), State Street Corp.(STT) and SunTrust Banks Inc. (STI).

Schwab Health Care (SWHFX) seeks long-term capital growth by investing primarily in equity securities issued by companies in the health care sector.

The fund may invest in common stocks and other equity securities of foreign companies. It offers dividends and capital gains annually. Unit holders have to make a minimum initial investment of $100 to enter this Zacks#1 Rank ("Strong Buy") fund that has an expense ratio of 0.82%.

Johnson & Johnson (JNJ), Baxter International Inc. (BAX) and Amgen Inc. (AMGN) are among the fund's top holdings.

This from Money Morning:

While the U.S. government’s plan to invest $250 billion into U.S. financial institutions has been billed as a strategy that will bolster the health of the banking system and also jump-start lending, the recapitalization plan is likely to have a secondary effect – one that whipsawed U.S. taxpayers likely won’t be…

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