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Monday, October 10, 2011 - 3:43am

FDIC Sues Failed Alpharetta Bank

Federal regulators are suing 11 insiders at a failed Georgia bank, accusing them of gross negligence.

The Federal Deposit Insurance Corp. accuses the executives and directors of Alpha Bank & Trust, in Alpharetta, of sloppy lending practices.

The Atlanta Journal-Constitution reports the lawsuit seeks $23.9 million in damages.

Alpha Bank failed in October 2008, roughly 30 months after it opened. It was one of the early casualties of the economic collapse.

The suit filed on Friday in in U.S. District Court in Atlanta said the bank's strategy focused on "growth above alnl else, including safety and soundness."

Georgia leads the nation with 70 failures since mid-2008.

The FDIC estimated in the suit that Alpha Bank's collapse cost $214.5 million.