Mon., January 28, 2013 5:00am (EST)

Feds Target Georgia Bank Executives
By Associated Press
Updated: 1 year ago

ATLANTA, Ga.  —  
Georgia tops the FDIC’s list of failed banks with 84 closures since 2008.  (Photo courtesy:  Brian Mills via flickr)
Georgia tops the FDIC’s list of failed banks with 84 closures since 2008. (Photo courtesy: Brian Mills via flickr)
Georgia tops the FDIC’s list of failed banks with 84 closures since 2008.

Now federal regulators are seeking millions of dollars in damages in a suit against the former executives of one of those Georgia banks.

The Federal Deposit Insurance Corporation filed a civil complaint Friday against 11 former executives of the First National Bank of Georgia in Carrollton for negligence in their oversight.

The suit says the former officers showed unsound banking practices when they approved 14 risky real estate loans that resulted in severe losses.

The FDIC is seeking more than $29.9 million in damages. An attorney for the former bank officers says the claims in the lawsuit are meritless.

The bank was shut down 2 years ago this month.


Contributors: Pat Marcus