Power Breakfast: Another Georgia bank fails, state finances, Hartsfield, PINs, BP, G-20

Congressional leaders may have just reached a deal on financial reform, but banks keep failing in Georgia.

The latest: First National Bank of Savannah, reports AJC staffer Peralte Paul.

The bank’s tagline was, “We’re always here — like the sunrise over Savannah,” wrtes Paul. But the sun set Friday when federal regulators seized the institution.

It is the ninth Georgia-based bank to fail this year and the 39th in the state to be seized since 2008, Paul reports.

The Federal Deposit Insurance Corp. said Savannah Bank, which has more than $1 billion in total assets, will assume First National’s deposits, Paul reports.

First National had $252.5 million in total assets and $231.9 million in deposits at the end of March.

The FDIC estimates the cost to its Deposit Insurance Fund will be $68.9 million.

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6 comments Add your comment

Winfield J. Abbe

June 28th, 2010
7:24 am

In the corrupt state of Georgia the legislature even passes illegal laws to regulate landlords and confiscate their property from them to aid deadbeats who lie, steal and cheat them on a regular basis, but when it come to regulating banks they don’t even fund the state regulators. The U.S. Con stitution provides that no state can pass any law impairing the obligations of a contract. But this is exactly what Georgia has done for decades in patent and clear violation of the supreme law of the land and while lawyers sit idly by and do nothing but charge for more worthless contracts. As Willie Sutton said in answer to the question of why he robbed banks, ” because that is were the money is”.
In Georgia the best way to rob a bank is from the inside, as a legislator on the board or owner of the bank or crony of the owners. The state of Georgia even encourages this as public policy while they patently violate the law regulating landlords and stealing their money and allowing their property to be destroyed and taken from them. This is the kind of public policy the good for nothing lawmakers of Georgia, who constantly run their mouths about too much government, make. They sit idly by while the federal government shuts down their banks after the taxpayers have been fleeced.

bobby coleman

June 28th, 2010
7:56 am

interesting. a bank is opening piedmont bank on 141, one new one on old milton pkwy.
the one next to the po on old milton has had three names this past 24 months.
new construction, at at least one million per, and they are dropping like flies? what’s the real story here, how does this happen, and why?
is it a money game with our money, or are these folks just stupid

Morrus

June 28th, 2010
9:16 am

Curiously, in a supposed anti-incumbent year, most of the departing are not retiring but seeking higher office. We may recycle more than we replace. The bad news is that a frustrating 114 seats still have but one contestant. Two of them aren’t even incumbents, meaning they will affect state policy without being vetted by voters. And I have to think that we’d be better off if many had run instead for the Legislature — and cut down on the number running unopposed. Georgia’s problems are numerous. They aren’t going away. There’s too much stale thinking at the Capitol, on both sides of the aisle. New voices would be welcome.

TnGelding

June 28th, 2010
9:40 am

Maybe the requirements are too stringent?

What surprised me about the latest economic downturn was the number of businesses that had to tap their line of credit to meet payroll.

Lou

June 28th, 2010
9:50 am

You know what is funny. If I go to Lowes and buy a gadget, I give them my money and walk out with a solid object. The sales money went back to a company with a balance sheet,machinery,trucks for delivery and all that. Thy take my money and they made something. Now I hit the scatch off for 100 and say, hmm, I’ll save this. I take my hundred and go to the bank and enter it into the savings account. You know what the bank gives me, a slip of paper. They made NOTHING. All they had was a building and tellers, fancy desks and deposit forms they ordered from a printing company, no factory, machines, trucks, etc. They gave me a slip of paper for 100 bucks. Where did all this money go? Like everthing else that a banker or politician touches-they stole it, stole it all!

Audiatur et altera pars!

June 28th, 2010
1:08 pm

Lou-

I know you have to be kidding right? Do you understand the principal of banking? You got a piece of paper that is correct, but what do you still have a hundred bucks, even though miniscule, over time that 100 bucks builds some interest. Where do you think Lowe’s gets the money to buy that truck, etc… it is not from just the sales of that object you bought. Did you ever stop and think that Lowe’s borrows money from financial institutions to be able to have balance sheet, machinery, tools, etc..
Lou- do you own your own home, if so did you pay cash for the full amount or did you have to finance it? HOw about that automobile you drive?

A bank is not a manufacturing plant in the sense of a material object but they did make and do something-