Comments Subscribe to Personal Liberty News Feed Subscribe to Personal Liberty
 

Attorney: FDIC Is Blaming Community Banks

ATLANTA (UPI) — Federal regulators suing 12 former bank officials in Georgia are attempting to blame the financial crisis on community bankers, an attorney in Atlanta said.

“Our view is that this is the latest example [of] the Federal Deposit Insurance Corp. trying to blame small-town community bankers for the financial crisis,” said Alston & Bird attorney Theodore Sawicki, who is defending Freedom Bank officials from charges of negligence and breaches of fiduciary duties.

The Atlanta Journal-Constitution reported Wednesday that the lawsuit filed by the FDIC seeks $11.05 million in damages from officers of the bank that is one of more than 400 U.S. banks that have failed since the financial crisis began in January 2008.

Sawicki said his clients, “acted reasonably and in good faith.” But the FDIC says the officers were recklessly aggressive with their investments.

The bank also mishandled loans, authorizing 21 loans with “inadequate, incomplete or outdated” documentation, “resulting in loans advanced to borrowers with no apparent ability to repay or otherwise service the loans,” the FDIC said.

Including the bank officials in Georgia, the FDIC has authorized lawsuits against 427 individuals and is seeking $7.82 billion in damages, the newspaper said.

 

 

UPI - United Press International, Inc.

Since 1907, United Press International (UPI) has been a leading provider of critical information to media outlets, businesses, governments and researchers worldwide.

Facebook Conversations

Join the Discussion:
View Comments to “Attorney: FDIC Is Blaming Community Banks”

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

Is there news related to personal liberty happening in your area? Contact us at newstips@personalliberty.com

Bottom
close[X]

Sign Up For Personal Liberty Digest™!

PL Badge

Welcome to PersonalLiberty.com,
America's #1 Source for Libertarian News!

To join our group of freedom-loving individuals and to get alerts as well as late-breaking conservative news from Personal Liberty Digest™...

Privacy PolicyYou can opt out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.