FDIC Hits Failed Bank's Execs With $10M Suit Over RE Loans

Law360, Los Angeles (June 20, 2013, 4:06 PM EDT) -- The Federal Deposit Insurance Corp., as receiver for Southern Community Bank, hit nine former members of the failed financial institution’s directors loan committee with a $10.3 million lawsuit in Georgia federal court on Tuesday, seeking damages for their approval of allegedly risky real estate loans.

Fayetteville, Ga.-based SCB was closed in June 2009 by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. The FDIC now says the bank’s former executives were negligent and grossly negligent by approving certain loans that violated...
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