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National Bank of Georgia

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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National Bank of Georgia was a financial institution that became entangled in the BCCI scandal.1

Acquisition by BCCI

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

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

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

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

Sources

  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. ↩
  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. ↩
  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. ↩

Connected to

Organization
Bank of Credit and Commerce International
The Bank of Credit and Commerce International (BCCI) was a Pakistani-founded offshore bank that operated across 78 countries before its 1991 collapse exposed a decade-long conspiracy involving money laundering for drug cartels and intelligence agencies, illegal acquisition of U.S. banks, bribery, fraud, and arms trafficking, in what regulators called the largest bank fraud in history.
9 shared pages
viaRobert Altman · Kamal Adham · Jimmy Carter · Roy P. M. Carlson · Bert Lance
Person
Clark Clifford
Clark Clifford (1906-1997) was a Washington attorney who served as Special Counsel to President Truman, co-authored the National Security Act of 1947, served as Secretary of Defense under Lyndon Johnson, and became the central American figure in the BCCI scandal after he and his partner Robert Altman personally vouched to banking regulators that BCCI would not secretly own First American Bank -- a representation that proved false.
4 shared pages
viaRobert Altman · Kamal Adham · Bert Lance · First American Bank

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