Tue., March 6, 2012 6:28pm (EST)

Georgia Bank Directors Sued
By Associated Press
Updated: 2 years ago

ATLANTA  —  
Federal regulators are seeking to regain some of the money they lost when a Georgia bank failed.  (photo Mingkit)
Federal regulators are seeking to regain some of the money they lost when a Georgia bank failed. (photo Mingkit)
Federal bank regulators have sued 12 former directors and officers of a failed Georgia bank that collapsed less than six years after it was formed.

The Federal Deposit Insurance Corporation accuses the operators of Freedom Bank of Georgia in Commerce in a lawsuit filed Monday of aggressive lending practices that focused too much on high-risk loans.

It said the bank failed to conduct a cash flow analysis for all its borrowers and didn't do enough market research.

The agency says that meant the bank's finances deteriorated even as it grew.

Freedom Bank closed in March 2009, costing the FDIC about $48 million.

The agency is seeking $11 million in damages.

An attorney for the defendants said his clients acted in good faith and shouldn't be blamed for the financial crisis.