David Poythress and the failure of American United Bank

Veteran reporter Tom Crawford of Capitol Impact has posted the following on his subscription web site:

The financial crisis that has resulted in the failure of a record 25 banks in Georgia has also had an impact on the race for governor.

The latest state bank to be shut down by regulators was American United Bank of Lawrenceville, a financial institution established in 2004 to focus on the banking needs of Georgia’s immigrant community.

The chief executive officer of the bank’s holding company, American United Bancorp Inc., is David Poythress, the state’s former labor commissioner and a Democratic candidate for governor.

Poythress retired as adjutant general of the Georgia National Guard in 2007 to become the CEO of the holding company. He was also a member of American United Bank’s board of directors and owned a share of the bank valued at more than $10,000, according to his financial disclosure statement.

“The holding company is still in existence, but we only owned the one bank so it’ll be closed in due course,” Poythress said in a brief interview Tuesday.

“It is indicative, of course, of the state of the economy,” Poythress said of the bank’s failure. “Commercial real estate is in the tank and there’s a tremendous ripple effect throughout the industry.”

When asked if bank oversight might now become an issue in the governor’s race, Poythress said he will continue to focus on the three major issues of public education, water and transportation.

“The whole question of banking and financial institution reform is really more of a federal issue than a state issue,” he said.

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7 comments Add your comment

Drooly

October 30th, 2009
6:29 pm

“The latest state bank to be shut down by regulators was American United Bank of Lawrenceville, a financial institution established in 2004 to focus on the banking needs of Georgia’s immigrant community.”

This is Crawford’s way of telling you that the bank was set up to make loans to illegals. Including mortgage loans. Nevermind that it is a federal crime to encourage an illegal to remain n the USA and that ( if the law were actually enforced) the penalty is increased for doing so for commercial profit.

Sub-prime crisis # 2 ?

BPJ

October 30th, 2009
9:29 pm

I thought comments were being reviewed, yet this unsubstantiated allegation about “illegal aliens” is allowed to pass by??? If Drooly has any evidence of loans to people here illegally, come forward with it. If Drooly has no such evidence, then whose stooge is he?

Screw Up Birther, Deather,

October 30th, 2009
11:54 pm

No doubt his campaign slogan will be! ” No failures on my watch”

The Snark

October 31st, 2009
9:57 am

Hey DROOLY:

Do you truly not understand the difference between an “immmigrant” and an “illegal alien”? That is some shocking ignorance, even by the meager standards of AJC blogs. An immigrant is, by definition, a foreigner who legally enters the United States to become a citizen.

Let me put it this way: Unless you are 100% Cherokee or other native American Indian nation, YOU are the descendant of immigrants.

usoo

November 1st, 2009
11:11 am

How about “exploitation” of immigrants….such as high interest loans with interest rates similar to payday loans….

Base

November 1st, 2009
4:31 pm

Another corrupt politician.Hope he bites the dust.

RSB

November 2nd, 2009
8:49 am

USOO – apparently the “exploitation” wasn’t quite enough for the risk of this group.

Atlanta, and GA by default, is in chaos. Too much of our economy is tied to real estate industry. We have to control building to have any kind of stable economic future, or we will go the way of Detroit and Cleveland.

Would you be surprised that the Atlanta metro statistical area ranks 18th our of 20 on the Case Shiller index for real estate gains from 2000? Lower than Atlanta were the great cities of Detroit and Cleveland. These cities both lost population big time, which accounts for the bottom end results. But what of Atlanta, that grew like crazy during this period? Too much building, too much supply. In 2000, you could have bought a home in Phoenix, Miami and Las Vegas and STILL been ahead of Atlanta. Check out the stats for yourself.

Before we continue down the same path we left when the economy turns (those that do not remember history are condemned to repeat it), call your congressman now and tell him we want to control building growth in Atlanta. If you own your home, your personal net worth is at stake.