By late 1930, the effects of the stock market crash of 1929 had reached Tennessee. A few days after Horton's victory in the general election, numerous banks controlled by Lea's business associate, Rogers Caldwell, failed, wiping out over $6 million in state deposits. Horton faced impeachment, and Lea was indicted on charges of bank fraud. While the motion calling for Horton's impeachment failed in the state House, both Caldwell and Lea were eventually convicted on charges of bank fraud.