Montgomery Bank & Trust in Ailey (just outside Vidalia), which failed Friday, was “saved” by an investment fund a year and a half ago that turns out to have been fraudulent. One of the directors of the bank also ran the fund, which swindled investors out of millions of dollars. That bank director, Aubrey Lee Price, is now missing and so is the money.
The FDIC is far behind the 2011 pace of closures, which was considerably behind 2010. Georgia continues to lead the nation in bank failures since the economic crisis, but the 5 closed so far this year is far lower than the 23 Georgia banks closed in 2011.