The other shoe is dropping.
Federal authorities have opened criminal investigations into a number of bank failures in northern Georgia, U.S. attorney Sally Yates told the Atlanta Journal-Constitution on Wednesday.
“The northern district of Georgia has had more bank failures than any other district in the nation,” Yates said. “Not every one of these is attributable to criminal fraud, but some are.”
Yates declined to say which failed banks her office is probing or how many are under investigation. She also declined to say when charges would be brought.
“We’re trying to get to the bottom of these cases as quickly as possible,” she said.
Since 2008, 37 banks have failed in Georgia, more than in any other state, AJC reporters Bill Rankin and Paul Donsky write.
Most were small lenders in metro Atlanta or in the north Georgia mountains that ran into trouble when huge pools of real estate loans defaulted.
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