FDIC Sues Ex-First National Bank of Arizona CEO Over Losses
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Ex-First National Bank of Arizona Chief Executive Officer Gary A. Dorris and former director Philip A. Lamb “sacrificed safety” and promoted risky nontraditional mortgage loans that ultimately caused the bank’s failure, the Federal Deposit Insurance Corp. said in a lawsuit.
Dorris and Lamb were negligent in exercising their duties, given the obvious risks of the bank’s business model, the agency said yesterday in a complaint in federal court in Phoenix.