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FDIC Sues Failed Alpharetta Bank

By: AP Email
By: AP Email

ATLANTA (AP) -- Federal regulators are suing 11 insiders at a
failed Georgia bank, accusing them of gross negligence.

The Federal Deposit Insurance Corp. accuses the executives and
directors of Alpha Bank & Trust, in Alpharetta, of sloppy lending
practices.

The Atlanta Journal-Constitution reports (http://bit.ly/q9BwUT)
the lawsuit seeks $23.9 million in damages.

Alpha Bank failed in October 2008, roughly 30 months after it
opened. It was one of the early casualties of the economic
collapse.

The suit filed on Friday in in U.S. District Court in Atlanta
said the bank's strategy focused on "growth above alnl else,
including safety and soundness."

Georgia leads the nation with 70 failures since mid-2008. The FDIC estimated in the suit that Alpha Bank's collapse cost $214.5 million.

(Copyright 2011 by The Associated Press. All Rights Reserved.)


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