On Saturday, I posted House banking committee chair joins his Senate counterpart in the FDIC spotlight, so check out that post if you need more background on this.
Today, the AJC is giving prominent coverage to the fact that both state senate banking committee chair Jack Murphy and state house banking committee chair Greg Morris have been directors at failed banks. Curiously, the piece does not mention that Morris was once fined by the FDIC, but there’s more on that in my post.
From the AJC’s Failures familiar for banking committee leaders:
Morris, R-Vidalia, is not accused by regulators of any wrongdoing in the failure [of Montgomery Bank & Trust in Ailey]. But a fellow board member, Aubrey Lee Price, disappeared last month and is being sought by federal authorities for allegedly embezzling at least $17 million, and possibly more than $21 million, from the bank where he was once seen as a savior.
Morris defended himself and his board colleagues for battling for several years to save Montgomery Bank. Employees invested their retirement money and directors ponied up to keep it afloat.
“We didn’t just walk away,” Morris said. “We fought. We fought to the bitter end side-by-side.”
Given the nature of the fraud perpetrated by Price, this image of the bank directors as heroic soldiers seems a little ridiculous.