Regulators have closed a small bank in Georgia, bringing the total number of U.S. bank closures to four for this year after 51 closures in 2012. The Federal Deposit Insurance Corp. said Friday that state regulators closed Frontier Bank of LaGrange, Ga. It has nine branches in Georgia and Alabama.
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.
Federal banking regulators want former officials of Atlanta-based Silverton Bank to pay $71 million in damages following Georgia's largest bank failure. Silverton went belly up two years ago. Now, the Federal Deposit Insurance Corporation alleges, former bank officials followed lax lending policies and bought lavish airplanes and posh buildings while their bank verged on collapse.
State Senator Republican Jack Murphy says he’s innocent of federal charges brought against him. The FDIC is suing him and others who sat on the board of a failed local bank. The civil lawsuit alleges the bank violated banking laws.