26 lines
2.1 KiB
Markdown
26 lines
2.1 KiB
Markdown
---
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tags: ["Organization", "Bank"]
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category: "Private Organization"
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summary: "National Bank of Georgia was a financial institution that became entangled in the Bank of Credit and Commerce International scandal.[^1]"
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end: 1987
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location: "Atlanta, Georgia, USA"
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---
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National Bank of Georgia was a financial institution that became entangled in the [[Bank of Credit and Commerce International|BCCI]] scandal.[^1]
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### Acquisition by BCCI
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[[Ghaith R. Pharaon]] finalized his acquisition of National Bank of Georgia from [[Bert Lance]] in January 1978, with the help of [[Agha Hasan Abedi]].[^1] Abedi paid off Lance's $3.5 million bank loan on the same day.[^1]
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BCCI illegally acquired the National Bank of Georgia, using Pharaon as a front man.[^1] The bank's assets quadrupled from $400 million to $1.6 billion under [[Roy P. M. Carlson]]'s leadership, who was appointed head of the bank by Abedi and Pharaon.[^2] The National Bank of Georgia functioned primarily as a clearinghouse for BCCI funds in the [[United States]], a destination for BCCI letters of credit, and a provider of loans and services to BCCI's international clientele.[^2]
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By 1987, the bank's share of the [[Atlanta]] retail market had dropped to 5 percent, and it began to suffer significant loan losses, requiring new capital infusions.[^2] [[First American Bank]] purchased the National Bank of Georgia from [[Ghaith Pharaon]] for $227 million in 1987.[^1]
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### Legal Issues
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The National Bank of Georgia was one of the three prominent U.S. banking institutions that the [[Federal Reserve Board]] fined BCCI $200 million for illegally acquiring control.[^1] It was also part of the indictment against BCCI and Abedi in November 1991.[^3]
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### Footnotes
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[^1]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 11-14.
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[^2]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 211.
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[^3]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 383.
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