FDIC Sues Ex-Silverton Board, Officers for $71 Million in Georgia's Largest Bank's Collapse

Quicklink submitted by Amanda Lang     Permalink
Related Topic(s): ; ; ; ; ; ; ; ; ; ; (more...) , Add Tags  (less...)

View Ratings | Rate It

opednews.com

Become a Fan
  (9 fans)


At www.bloomberg.com

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.

Read the rest of the story HERE:

At www.bloomberg.com


 

Comments

The time limit for entering new comments on this Quicklink has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
No comments