Taxpayers eat a $123 million cow patty that Broun helped to bake
U.S. Rep. Paul Broun, R-Athens, has denounced President Obama as a socialist and Marxist. He denounced the bailout as “a huge cow patty with a marshmallow in the middle of it, and I’m not going to eat it.” He champions “proven free-market principles” and has sponsored what he calls “the JOBS Act.” which he claims “would leave more money in the hands of small businesses and individuals, without spending a penny of taxpayers’ hard earned money.”
Broun was also a major investor in McIntosh Commercial Bank, based in Carrolton. His brother, Conrad, was a founding director of the bank. After losing $28 million over the previous two years, the bank was closed in March by the FDIC. At the time of its closing, it had $88 million in bad loans on its books.
So who’s at fault in the collapse of the bank?
As if you didn’t know.
“The federal government is closing these banks down when there is absolutely no reason to do so,” Broun told the AJC. “It’s just totally wrong.”
“Sheila Bair [the FDIC's chairman] and the FDIC that’s forcing all of this, under the direction of this [Obama] administration, needs to back off and let community banks do what they should be doing,” he said.
By the way, it’s costing the FDIC $123 million to cover deposits lost in the collapse of McIntosh Commercial Bank. That’s a huge cow patty withOUT a marshmallow, to borrow a phrase, and it leaves an unpleasant taste.
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127 comments Add your comment
vince neil
June 25th, 2010
10:58 pm
you are all morons…I am so tired of leftist opinions wrapped in progressive Prius driving cloth bag shopping elitism…the depositors are insured not the shareholders…..what Broun and others are saying is that the small banks are being held up and forced to close based on the possibly irrational standards forced by the fed…while the giant Wall Street banks run by the really really smart IVY Leaguers are bailed out….now did the banks irrationally loan on real estate based on unrealistic expectations of an ever growing home buying population ( and was the MC Comm bank run by douchebags who I know)..yes….but that is not the point here..did i say you are MORONS….just sayin here
Tdawg
June 25th, 2010
11:28 pm
$123 Million that taxpayers had to eat? That money comes from an insuance fund paid solely by FDIC insured banks. This is one of the only recent failures that the government has been involved in that taxpayers won’t have to eat. Hey AJC, will you pay me to write a blog? I can think of quite a few things to write on that I don’t know anything about.
itpdude
June 26th, 2010
2:47 am
Why do you bother? The GOP has lost its mind.
Irony dies a little more with every statement the GOP udders.
*heh* Get it? “Udders.”
Now Bookman, go have your cow-pie souffle called Obama.
Norman
June 26th, 2010
6:14 am
Almost nothing good ever comes from government. They got hooked on the generic idea that poor people should have houses too. As usual the government solution had horrendous unintended consequences. Many of the not so poor moved up to mortgages they couldn’t afford as well. Now the responsible among up must pay the price of government corrections of government caused problems that don’t even touch Freddie and Fannie. Excuse us for not throwing a parade for those wonderful democrats who say they are selflessly riding in on a white horse to save us.
John Galt Jr.
June 26th, 2010
8:04 am
WAA WAA WAA. Keep crying weenies. I love to see you guys clamoring how the “neocons” are soon to be extinct. ROFLMA
In 2010, Conservatives Still Outnumber Moderates, Liberals
Last year’s increase in conservatism among independents is holding
by Lydia Saad
PRINCETON, NJ — Conservatives have maintained their leading position among U.S. ideological groups in the first half of 2010. Gallup finds 42% of Americans describing themselves as either very conservative or conservative. This is up slightly from the 40% seen for all of 2009 and contrasts with the 20% calling themselves liberal or very liberal.
Political Ideology — 2010 Half-Year Update (1992-2010 Trend)
The 2010 results are based on eight Gallup and USA Today/Gallup surveys conducted from January through June, encompassing interviews with more than 8,000 U.S. adults. The 42% identifying as conservative represents a continuation of the slight but statistically significant edge conservatives achieved over moderates in 2009. Should that figure hold for all of 2010, it would represent the highest annual percentage identifying as conservative in Gallup’s history of measuring ideology with this wording, dating to 1992.
The recent rise in conservatism’s fortunes follows a decline seen after 2003; liberalism has experienced the opposite pattern. From 1993 to 2002, the ideological trend had been fairly stable, with roughly 40% identifying as moderate, 38% as conservative, and 19% as liberal. Before that, the presidential bid of independent candidate Ross Perot may have contributed to a heightened proportion of Americans (43%) calling themselves moderate in 1992.
LaShondra
June 26th, 2010
8:12 am
Of couse if Broun had an investment in the bank it’s wiped out. But Bookman is never one to let facts get in the way of a hit piece. What a toady!
Notice that Bookman is absolutely quiet about the massive fraud develped and executed by Obama’s buddies at Goldman.
jake's mom
June 26th, 2010
8:26 am
Whew!! Y’all need to switch to decaf
Garry Owen
June 26th, 2010
9:49 am
The more regulation the more the government controls our lives. Wait until the impact of this big government spending and control comes due. Who will pay for it? We will for years to come, as will future generations. If you bring Dr. Broun into this story where are Rep. Franks and Sen. Dodd and their cozy relationship to Fanni Mae and Freddie Mac?
Gordon
June 26th, 2010
10:58 am
I notice Jay and his followers are spending less and less time defending Obama, and more and more time attacking those who criticize Obama. Yesterday it was that Missouri farmer. I can’t blame them. The good news is that there will always be a never ending supply of people who screw up on both sides of the political spectrum.
Jack
June 26th, 2010
11:57 am
Banks have bad debts because the federal government required them to make loans to unqualified losers.
Jack
June 26th, 2010
12:37 pm
Bank have bad debts, because they were greedy and contolled the regulators. I am sure Jack is referring to the poorer people who got loans as the result of CRA regualtions and Affordable Housing initiatives, however, these are not where the problem was, it was the lack of Banks following prudent lending policies (practically unregulated) making loans to waiting buyers on properties that (in the end) had inflated values. The derivatives market was the place the loans were dumped, little review as to what they were comprised of, the resulting security was traded as AAA rated and we bought them in our retirement funds (directly or indirectly). When the bubble fianlly burst we were left with the mess we have know. The Banks need to be regulated, as do other industries. Capitalism unregulated results in greed being the motivating factor.
ken R
June 26th, 2010
2:47 pm
Obama just announced that if Congreee passes the new Cow Paddy it will create more jobs and stimulate the economy. What in the hell did the first Cow Paddy do? and Jay how is the DOW now?
You bragged a few months ago as to how great this was. LOL
ken R
June 26th, 2010
2:47 pm
mis-spelled, Congress
ranger
June 26th, 2010
3:41 pm
Broun should know a thing or two about cowpatties because he is a master of b.s.
DT
June 26th, 2010
3:43 pm
call me a simpleton economics wise..if they only had $88 mil in ‘bad loans’, how does the FDIC need $123 mil to cover deposits? There has to be something else bad in there (could be accounting goodwill, which doesn’t buy a cup of coffee), or is it government waste/overestimation? Anyone know the answer?
Thanks,
vuduchld
June 26th, 2010
6:35 pm
Well, you fools in Jawja continue to put clowns like this is office so what does that say about the electorate. Frankly, I really don’t care if your sorry state slides off the map into obscurity, it deserves to do so. Jawja, SC, Ala, Miss, the list goes on to infinity with the number of incompetent politicians running things. What makes me angry is that hard working taxpayers, me included, have to continue to pick up the tab. When are you folks going to realize that we’re living in the 21st century and not the previous one. As sorry a financial state you are presently in you can no longer afford these idiots. Do yoursevles a favor: GET RID OF THEM!!!!!!!!!!!!!!!!!!!!
Nope
June 26th, 2010
7:02 pm
I hate this paper. Why do I come here. (Sigh)
Reality
June 26th, 2010
8:06 pm
As usualy, republicans NEVER want government to spend on anything or anyone – unemployed, social security, etc. – unless it is in THEIR best interest – big banks, big corporations, etc.
Their well-known mantra is to help out the big money guys and to heck with everyone else.
Redneck Convert (R--and proud of it)
June 26th, 2010
8:35 pm
Well, I’ll have mine well dried up and heavy on the marshmallow. If I wasn’t so curious, I’d quit this blog and its sickos and find something useful to do.
At first I thought Bookman was going to tell the old joke about the four men that went camping. They drew straws to see who would do the cooking and decided the first man to complain about the cooking would take a turn as the cook. The guy that drew the short straw and was doing the cooking got fed up with it because nobody complained, no matter how bad he made it. Finally, he went out to a pasture and got some cow patties and mixed them in the stew he made. He watched as one of the guys took a big spoonful, spit it out, and said “This tastes just like cow s–t—BUT GOOD!”
Have a good Saturday night everybody. But I’m afraid you’re already off to a crappy start.
Robert
June 26th, 2010
9:46 pm
Jay, you are such a brillaint journalist. I always enjoy reading your articles because you obviously have no political agenda and just provide the facts. Thanks for writing all of the wonderful, informative articles without bias. I cannot wait to read your next article! You are a real blessing to the AJC! Please keep up the great work and go see your boss for a hefty raise as you are clearly due one.
Joe
June 26th, 2010
9:55 pm
This bs pales in comparision to the $787 billions dollars Obama and the rest of the dems are pissing away….. Jaybird you just don’t realize how stupid you look do you????
No to Broun
June 27th, 2010
5:03 am
Broun is a disgrace to Georgia. Vote him out!
Mtn, Man
June 27th, 2010
5:10 am
The Great Depression of the 1930,s differed greatly from this financial crisis,in that most working people abhored CREDIT,and saved up before buying most major purchases……they actually OWNED something after their efforts were done! When modern buyers buy today,they LEVERAGE up on an asset,and “RENT-TO- NEVER- OWN” many of their possessions! Not surprising,that every income related hickup ends up wiping folks out……..many were living a thing driven fantasy anyway…….reality has it,s day! Mtn. Man {Clear and FREE, UP HERE!}
Observer
June 27th, 2010
7:25 am
Let me see. So Fannie Mae creates a balloon that collapses the real estate market, making the community banks’ portfolios of real estate loans worth less, pushing the capital ratios under minimums. The FDIC takes it over, sells all the loans to another (Soros controlled) bank at a huge discount and hoses all of the shareholders. And somehow this is all the fault of the bank shareholders.
Great analysis Jay. Terrific research.
Thogwummpy
June 27th, 2010
9:00 am
Let’s keep in mind, that Jay has yet to acknowlege the cause of the crisis that threatened our financial institutions: subprime loans to high risk borrowers (low achievers that liberals love); caused by activism on behalf of the poor. And yes, if Obama is not a socialist; then what philosophically defines a socialist? After all, Obama could publish a third book if it was filled with nothing but his quotes about redistribution of wealth.
Virginia
June 28th, 2010
10:05 am
Is there a dumber person in Georgia than Paul Broun?? Every time he opens his mouth, excrement falls out!
hopeful voter
July 7th, 2010
2:22 pm
Thankfully we have a choice! Check out Russell Edwards http://russelledwardsforcongress.com/