Ex-Omni Execs Face FDIC Suit Over Collapse

Law360, New York (March 16, 2012, 7:46 PM EDT) -- The Federal Deposit Insurance Corp. on Friday sued 10 former Omni National Bank officials, including two already jailed for fueling the Georgia bank’s collapse through shoddy home lending standards.

The regulator claimed in the suit that negligence and lax lending practices by the former officials prompted the bank’s failure in March 2009. The suit aimed to recover more than $37 million, including $24.5 million in losses allegedly sustained by the bank’s community development lending division, which targeted low-income buyers.

"The CDLD defendants approved the loss loans...
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