Power Breakfast: Georgia bank failures rise to 65, paying more for math teachers, Home Depot, immigration, debt ceiling

Just in case you missed it, another Georgia bank failed late Friday. It was the 65th since the financial crisis began in 2008 — the most of any state.

AJC writer Arielle Kass reports that Mountain Heritage Bank in the north Georgia town of Clayton was closed by regulators — the 14th failure of a Georgia-based bank this year.

It was sold to First American Bank and Trust Co. in Athens, the FDIC said.

The bank, founded in 2003, had $103.7 million in assets and $89.6 million in deposits at two branches, Kass reports. The failure is estimated to cost the FDIC’s deposit insurance fund $41.1 million.

In 2009, after receiving cease-and-desist orders by regulators that June, Mountain Heritage Bank president Jim Wallis told the AJC he was trying to raise $2 million and shrink the bank’s balance sheet, Kass writes.

As with nearly every failed bank, Mountain Heritage bet heavily on real estate, Kass reports. Most of Mountain Heritage’s losses were on loans for construction of retirement homes and second homes, Wallis said.

Also in the AJC:

In other media:

- Henry Unger, The Biz Beat

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8 comments Add your comment

President Barack Obama

June 27th, 2011
6:51 am

If the Republicans would have allowed me to spend more, I could have saved the bank.

Local Yocal

June 27th, 2011
6:52 am

Hear that slurping sound? It’s the opposite of “trickle down”. It may already be too late. I miss the United States Of America.

Tamika

June 27th, 2011
7:08 am

Obama is running deficits that any of his pet economists would have predicted to have massively stimulated the economy. The result of massive borrowing and funnelling money to unions is not much for the rest of us. The economy will continue to lag as long as the democrats keep bashing and regulating business, trying to raise taxes and support unions.

We have tried Obama’s policies before ( remember Jimmy Carter?) and we know they don’t work.

Marlboro Man

June 27th, 2011
7:20 am

Why are the stock holders of these 65 banks silent? After losing their shirts, it would seem some of these bankers would be brought up on charges. There are rules, regulations to protect the stockholders, someone got rich on these bad bank deals. Follow the money.

Where’s the shame and jail time for the crooks?

dmb

June 27th, 2011
8:05 am

@Marlboro Man – they’re probably too scared to know the real truth. Bush sold us down the river.. too much nonsense in the banking industry.. too many bad home loans.. more bad news to come.. Why aren’t the GOP candidates campaigning on how they will clean up the banks and make real reform? Go after Wall Street for criminal charges and repay the American people. Too scared they’ll lose $? Politicians = shady = we’re screwed.

DollarDawg43

June 27th, 2011
8:13 am

Marlboro Man, some of these bankers are now even landing executive positions with the bank that purchased the very failure they caused. Two weeks ago a bank in South Metro Atlanta failed and the FDIC estimates the cost to the Deposit Insurance Fund to be $80.0 million. That does not include the investment lost by shareholders.

The failed bank’s top two executives now have cushy, executive postions with the new entity. For them, it is business as usual. Their compensation packages will allow them to replace their now worthless stock in a failed institution with stock in a healthy bank that is already planning to buy other banks as they fail.

For individuals like this, not only is there not any accountability, they will profit immensely as time goes by. You may wonder how they pulled this off. It just so happens the top executive at the failed bank was a college buddy of one of the top executves at the purchasing institution. Pretty cozy, huh?

Mr. Potter

June 27th, 2011
2:14 pm

Anyone who read the piece about Georgia’s chief bank regulator (Rob Braswell) in the AJC about a week ago will understand why this is happening. He is in bed with the bankers and his policy has been to “see no evil”.

crooks rule

June 27th, 2011
10:54 pm

more crooked bankers—no surprise with all their crooked friends in the legislature that make sweetheart deals while getting rich.