FDIC Sues Ex-Silverton Board, Officers for $71 Million in Georgia's Largest Bank's CollapseQuicklink submitted by Amanda Lang Permalink
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|The Federal Deposit Insurance Corp. sued former directors and officers of Atlanta-based Silverton Bank N.A. seeking $71 million to help recoup costs stemming from the biggest bank collapse in Georgia history.
The bank consistently disregarded its own policies when making loans, according to the suit. At the same time, it built a "large and lavish" office building and spent millions on new corporate aircraft, the suit states.
"Silverton's aggressive expansion plan was accompanied by significant weaknesses in loan underwriting, credit administration and a complete disregard of a declining economy," the FDIC said in its complaint.
The damages sought by the FDIC represent less than a fifth of the $386 million it spent on Silverton, which was declared insolvent in May 2009, the lawsuit alleges.
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