Glastonbury's Bankers' Bank Northeast is suing to recoup at least $9 million from former executives of a Maine bank and its accountant, The Bangor Daily News reports.
Bankers' Bank in February 2011 sued the former president and directors of the former Savings Bank of Maine, now called Bank of Maine, bangordailynews.com reported Wednesday.
Bankers' is correspondent bank that provides services such as international wire transactions, merchant card processing, and check clearing to small banks in the region.
The lawsuit was recently moved to Bangor federal court.
In it, Bankers' Bank says it loaned $18 million to Savings Bank in 2008. However, it says it made the loan on the strength of the Maine bank's 2007 financial sheets, which Bankers' Bank says were "false" and "dramatically overstated" Savings Banks' financial position.
In 2009, federal thrift regulators intervened and ordered the lender to improve its internal controls, among other remedial actions.
In early 2010, a group of investors led by Yorkshire Capital took over the bank.