Power Breakfast: Public hearing here on bank crisis, Georgia Dome, Coke, UPS, GMAC

Georgia has led the nation in bank failures and members of Congress are coming to town to hear about their effect.

U.S. Reps. Dennis Kucinich, a liberal Democrat from Ohio, and Lynn Westmoreland, a conservative Republican from Coweta County, plan to hold a public hearing at the Georgia State Capitol on Monday, reports AJC writer Bob Keefe.

They want to hear about how the high rate of bank failures in Georgia is affecting commercial and residential real estate markets.

Most of the failures have been small community banks, a major source of real estate loans in many towns .

But while federal grants through the Troubled Asset Relief Program helped prop up some of the nation’s biggest banks and financial institutions, “the little banks are getting the shaft,” Westmoreland said in an interview with Keefe.

“That’s causing a snowball effect,” he said. “You can imagine what it does to the rest of the economy.”

The hearing comes as some in Congress are considering injecting federal money into small community banks like those in Georgia, Keefe writes. Earlier this month, several top banking regulators told a Senate banking subcommittee that federal help for small banks could be key to keeping the real estate industry on the road to recovery.

Also in the AJC:

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2 comments Add your comment

clyde

October 28th, 2009
7:50 am

Throughout our lifetime the members of this household have not overextended and failed.Now the Fed wants to use our tax money to reinforce behavior that causes failure.This is basically wrong.It boils down to we worked and were frugal and wise,while others partied.Now they want us to finance their future fun.

GaNative

October 28th, 2009
8:56 am

To Hell with UPS. I use FedEx because the word on the streets is that UPS has outsourced a vast amount of it’s IT initiatives. I don’t do business with anyone that puts American Citizens out of work.