Georgia bank that loaned $2.2 million to Tom Graves, Chip Rogers goes under

One of two Georgia banks that failed last week loaned $2.2 million to a company owned by U.S. Rep. Tom Graves, R-Ranger, and state Senate Majority Leader Chip Rogers, R-Woodstock.

The bank was still trying to collect the money, intended to renovate a Calhoun hotel off I-75, when federal regulators shut it down on Friday.

Writes my AJC colleague Scott Trubey:

The banks are the first to fail in Georgia since Feb. 18. The eight-week period was the longest stretch in Georgia without a failure since a nearly two-month lull last summer.

Bartow County Bank reported $330.2 million in assets and $304.1 million in deposits as of December, the FDIC said. Hamilton State bought most of the bank’s assets and all its deposits in a loss-share deal with the regulator.

The FDIC said its failure will cost its Deposit Insurance Fund, the backstop that protects customer deposits, an estimated $69.5 million.

Here’s the background from a February article by my AJC colleague Jeremy Redmon:

The Bartow County Bank is suing Rogers and Graves, alleging the two owe the bank $2.2 million for a business loan that is now in default. Rogers and Graves, who took the loan out to buy and renovate the Oglethorpe Inn, have denied they owe the money because [John] Edens now owns the inn and the company that originally took out the loan, Tich Hospitality.

An attorney for the Bartow County Bank said Rogers has invoked a provision of state law that allows for lawsuits to be put on hold during a state legislative session.

“The case will not proceed while the General Assembly is in session, but my motion for summary judgment is ready to be filed as soon as the stay expires, ” Edward Hine, an attorney for the bank, wrote in an e-mail Monday.

State lawmakers and their staff, by state law, are immune from any civil action in Georgia courts during sessions of the General Assembly, and for three weeks after adjournment. For Rogers, that would be May 6.

- By Jim Galloway, Political Insider

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125 comments Add your comment

ga female

April 18th, 2011
1:23 pm

Can’t wait for Sally Yates and the FDIC to get a hold of these two now. Sally Yates office and the FBI told me that they were going to prosecute everyone involved in these banks that failed in Georgia. All the bankers, the developers, the contractors, ect.. So that includes these two along with the head of the banking committee. Shall the perp walk continue. Won’t the Casey’s side enjoy this perp walk.

deegee

April 18th, 2011
1:29 pm

Why would you want to hold the wealthy, productive people that create jobs accountable for costing the taxpayers $69.5 million?

TrishaDishaWarEagle

April 18th, 2011
1:30 pm

defaulting on a loan is not a crime..just a debt. Hate to burst that bubble.

sunkawakan

April 18th, 2011
1:32 pm

As much I’d like to think that those comments (ga female) were true, I think this will give them a pass on the debt, unfortunately. Couple of con-men, Graves and Rogers.

SpaceyG on Twitter

April 18th, 2011
1:39 pm

Oh come on, Jimbo. Don’t be puttin’ on airs over Chip’s bad investments. It’s a motel… not a hotel. *Mule in horse harness* muttering…

yuzeyurbrane

April 18th, 2011
1:41 pm

Could it be that many Teapartiers admire the cunning of taxcheaters and con artists?

Brenda

April 18th, 2011
2:01 pm

If a failed loan is grounds for proscecution there are not enough jails to hold everyone.

Only a liberal democrat would want to criminalize a failed business venture. For that matter the liberals would like to criminalize sucessful ones too.

If you have evidence of wrongdoing, bring it out. If you don’t…

Cobbite

April 18th, 2011
2:06 pm

Very few liberals/progressives even understand the idea of banking as a business or taking risk to build a business, let alone actually do it. They prefer to simply take money from those who do through the force of government.

Dumbo

April 18th, 2011
2:07 pm

yuzeyurbrane…….get the wax outof your ears, remember Bernie Madoff was a super big LIBERAL, in fact gave millions to left wingers and their causes….these 2 are crooks and the Teaparty didn’t, doesn’t support or protect crooks….talking of Tax Cheats how old Charlie Rangle doing lately!

Debbie Dooley

April 18th, 2011
2:08 pm

Brenda
It is the ethics of these 2 and our Governor – do you think they are honest businessmen????? We need massive ethics reform and these guys are all against it !!!!

Dumbo

April 18th, 2011
2:10 pm

Brenda…Reagan let the fools of the S$L industry pay and serve jailtime….why can’t the same be done to all the bankers who managed to destroy the economy & business environment in the last couple of years!

GaBlue

April 18th, 2011
2:12 pm

“Personal responsibility” is not for everyone, ya know. Some people matter and do not have to pay for their “mistakes.” Some people don’t, and should starve to death in a puddle of their own feces on the sidewalk for being ten days late on rent, while decent tea bag wearin’ Republicans step over their smelly carcasses on their way to a Herman Cain rally and then to stuff their fat jiggly guts at the Cheesecake Factory.

middleoftheroader

April 18th, 2011
2:13 pm

Geeze, two more republican politicianss involved with failing banks. Owing money that they didn’t pay back. The GOP can preach fiscal responsibility all it wants but until its members start personally practicing what they preach they have no right to set policy for the rest of us, make cuts affecting us, and spend our money benefiting their supporters.

Ole Roy Barnes

April 18th, 2011
2:17 pm

If I were Governor, this would not happen!

Nunya

April 18th, 2011
2:18 pm

Ha Cobbite! You crack me up… perpetuating the myth that Republicans are better at business than Democrats. If that was the case, then Gov. Deal, and these two chumps would not be in the news for their failures. But you just keep on believing the lies spoonfed to you by FOX News and the like.

middleoftheroader

April 18th, 2011
2:21 pm

Hey Brenda and Cobbite: We do understand banking and business. They are pretty simple. What makes them complicated is the verbage unscrupulous and dishonest people add to confuse us. That’s why the criticism. Banks use one set of people’s money to make loans to others. The second set is supposed to pay it back. This is not a speculative business. Good business people who also hold elective office don’t just walk off from their responsibilities, especially after they got special consideration due to their positions. Deregulation and not adhering to finite, explicitly defined rules of lending and borrowing, plus personal greed, have lead us to where we are now. Where is your compassion and understanding for those folks who had good jobs and took out appropriate mortgages, then, through no fault of their own, lost their homes. I don’t hear your understanding and support for them.

just won't fly

April 18th, 2011
2:21 pm

whats the best way to rob a bank: OWN IT

thats exactly what happened in America; now We the people are “bailing” out the companies that are too big to fail.

Seems Chip and all the others had their hands in the cookie jar also. LOL, this is laughable. They cant even run their own business and we expect them to run the STATE??

double

April 18th, 2011
2:24 pm

Speaking of failed savings and loans the Bush clan was much involved.Seems to be a pattern.

Fred

April 18th, 2011
2:26 pm

Woah, all you axe-grinders and conclusion-jumpers here, who can’t wait to pull out your tiny knives and start stabbing! There’s not enough info in this article to place blame on anyone.

The only relevant purported facts in this artlcle are : One man says another one owes a debt, the other man denies it and gives a plausible reason why he doesn’t.

That’s it.

We don’t know if anyone has done anything wrong, and it’s stupid to jump to accusations until the facts come out.

I don’t think either political party has a lock on corruption, either.

SpaceyG on Twitter

April 18th, 2011
2:32 pm

So after a very short bout of Googling here’s the street view of the Oglethorpe Inn in Calhoun, GA. Some investment, eh?! http://goo.gl/maps/aCSi

pn

April 18th, 2011
2:33 pm

The taxpayers (us) are left holding the bag…again. If you don’t like socialism, you should hate the FDIC, which is forced by law to take over failed banks to protect the depositors. We (the taxpayers) ultimately underwrite all the wheeling and dealing that these mostly crooked folks have done. They claim it is just failed investments. Yes, it is failed BAD, ROTTEN, UNREGULATED, UNSCRUTINIZED, MARGINALLY ILLEGAL investments that led to this huge number of banks failing in GA. Privatize profits, socialize risk: the Republican mantra. Their other mantra is: fleece the sheep and get away with it. In fact, let the sheep pay for your mistakes.

kidd Huff

April 18th, 2011
2:35 pm

Two words Graves and Rogers hated to hear…Sine Die!

T

April 18th, 2011
2:36 pm

I know this is a blog and all, but if liberals actually did their homework, they wouldn’t be saying half of what is being said. Also, if you would like to speak about fiscal responsibility and being truthful, then please tell half of Mr. Obama’s cabinet members to pay their taxes.

deegee

April 18th, 2011
2:39 pm

Does anyone know what Graves and Rogers actually did with the money?

Rational Thoughts

April 18th, 2011
2:39 pm

Defaulting on a loan isn’t a criminal offense. You people are morons. Go back to your shanties.

Jim

April 18th, 2011
2:39 pm

All I want to see is that if he borrowed the money and signed a note, or guaranteed such a note, that he has to pay it back like anyone else- If he gets to have a non-recourse loans because he is a politician and thus gets special treatment that is wrong- He should be at the same risk you or I are if we borrow money and then are unable to pay it back Just no special rules for ” special ” people

Reality Train

April 18th, 2011
2:40 pm

Enter your comments here

double

April 18th, 2011
2:46 pm

Fred would you agree Georgia needs to up date banking laws.

Grassroots

April 18th, 2011
2:47 pm

Most Republican politicians are con artist.
The “Mark-to-Market” bank rule that was designed for the stock market is stupidly required for bank real estate loans and destroys many banks and their stock holders unnecessarily and maliciously.
HUD has destroyed many banks by temporarily destroying the housing market in many areas including Metro Atlanta through mis-using a somewhat similar rule in cutting prices too low and unnecessarily costing taxpayers billions of dollars.
Most of the people that we elect to Congress, except Republican Con Artist, do not have a clue as to how the business world works or how it should work because they are trained in activities that do not relate to managing the biggest business in the world, the U S Government. The voters do not know either. Political Economics education is not allowed in our education system so that voters do not detect mistakes and scams.
Visit http://www.rojego.com you might learn some Political Econmics.

td

April 18th, 2011
2:53 pm

If Graves and Rogers are guilty of anything then prosecute them to the fullest extent of the law. We conservatives have always said to follow the law and we do not defend any criminals actions of our politicians. Same thing with Deal. Where is that prosecution that all of you liberals were saying that was coming in January? Do you really think he would still be in office right now if Holder found any illegal activity?

Until I see indictments and convictions then the rest of this is just Jim’s and the AJC’s way to try to distract you liberals from what a horrible job your “savior and chief” is doing.

DownLouis

April 18th, 2011
2:54 pm

to Grassroots – April 18th, 2011 2:47 pm

You wrote – “Most Republican politicians are con artist.”

I hate to break the news to you – but MOST POLITICIANS are con artists!

the Dems aren’t any move honest!

SEE

April 18th, 2011
2:56 pm

SEE THATS WHY I DONT PUCK WITH NO REPUBLICANS THEY ARE JUST MONEY GRUBBING IDIOTS.

Freedom lover

April 18th, 2011
2:58 pm

The FDIC is just another example of a moral hazard created by government. Here we have a worthless bank that probably should have failed years ago due to its poor financial dealings, questionable loan practices, etc. Without the Federal Reserve lending them money to waste and the FDIC backing up savers money, the smart folks would have pulled their money out a long time ago and allowed the bank to fail, Instead, the grossly bankrupt FDIC will now pass the losses on to the taxpayer while the owners and managers of this failure will take home big paychecks. Thanks again Uncle Sam. Maybe someday americans will wake up and listen to folks like Ron Paul when they talk about sound money and moral hazards created by government. There certainly are no other congressman talking about these critical issues.

Emax

April 18th, 2011
3:00 pm

with their powerful connections in the Ga legal system, these crooked politicians will beat the rap and not pay back a dime—book it.

Captain

April 18th, 2011
3:03 pm

What ever became of the investigation into the two home loans from Countrywide to former Democrat U S Senator and Chm of the Senate Banking Committee the honorable Christopher Dodd of CT? Hmmmmm, I hear crickets……what about the investigation into the home loan of Democrat U S Senator Byron Dorgan from Countrywide, hmmmm, still hearing crickets. Where you Dems who are so quick to jump on Republicans for ‘deals gone bad’ when it comes to illegal loans????? Countrywide Mortgage cost the taxpayers a lot more than Bartow Co Bank’s collapse, and Dodd was the largest recepient of campaign donations from Countrywide execs, over $600,000, followed closely by the current Pres of the country, Democrat Barack H Obama. The same Obama who worked out that sweetheart deal for property adjoining his home with now convicted and imprisoned Tony Rezko. Graves and Rogers are small time rank amateurs compared to the Big Boys at the Democrat Party who serve our nation in the U S Senate.

N-GA

April 18th, 2011
3:04 pm

Contrary to what many are saying on this blog, there are many instances where defaulting on a loan can lead to criminal charges.

Also, if a business takes out a loan and then the business is sold, the lender usually needs to review the credit of the buyer and convert/re-issue the loan.

td

April 18th, 2011
3:05 pm

It is so funny reading these libs talk about everyday how the Republicans are rich and only care about the rich over the poor and middle class Democrats. Do you all realize how stupid you sound? Do you all realize that Warren Buffet and Bill Gates (two riches men in America) are Democrats? Do you realize that Wall street and the huge banks donated 10 to 1 to the Obama compaign in 2008? Do you realize that almost every large law firm in the country supported Obama in 2008?
Where do you think Obama is going to get the $1 billion (yes billion) to run his re election campaign from?

Would you all like to revise and extent your statements or would you all like to still look so stupid?

Rational Thoughts

April 18th, 2011
3:07 pm

Contrary to what many are saying on this blog, there are many instances where defaulting on a loan can lead to criminal charges.

Also, if a business takes out a loan and then the business is sold, the lender usually needs to review the credit of the buyer and convert/re-issue the loan.

————————

I’m waiting.

Tracy D

April 18th, 2011
3:10 pm

Though I read this blog quite a bit and have never responded I must finally break my silence. To those of you who are calling people morons. if they used their political office to gain the loans, which most of the time they do for a favor, then it is illegal! If they stated the money was for remodeling the hotel/motel and they did not remodel it and use it for that purpose then they possibly applied for a loan under false pretenses. If they did it is illegal. Now to state a fact I don’t live in a shanty, I understand banking and fraud very well as I investigate these types of crimes. So to all those who can only denegrate others you reap what you sow. Now for puting off the case. Everyday working folks don’t have the luxury of putting off a case to save us political humiliation. If anyone else other than a politician or super rich individual was being sued we would not get such a luxury. And that is a fact.

Chris

April 18th, 2011
3:11 pm

So, no one else worth mentioning owed this bank money? Just $2.2 million in bad loans caused it to go under? The AJC STILL isn’t getting why their subscription rates stink so bad.

Trial Lawyer

April 18th, 2011
3:13 pm

Keep voting R and you’ll keep getting this. If they can’t manage their own money how can the manage the taxpayers

Fredo Corleone

April 18th, 2011
3:18 pm

The power of political office will corrupt anyone……

Just Deport Already

April 18th, 2011
3:18 pm

From the article and I quote ” Rogers and Graves, who took the loan out to buy and renovate the Oglethorpe Inn, have denied they owe the money because [John] Edens now owns the inn and the company that originally took out the loan, Tich Hospitality.”

Lets see here, you buy a home and then sell it 10 years later. The mortgage should be paid off by the sale but then the bank goes under and they come after you for the money…….DO YOU OWE IT or does the person who purchased the property owe it? I think its the person who purchased the property.

Instead of jumping to the results by reading a article, why not just realize that if this were democrates this would not even get a 2 line mention. This is the democratics way to make the republicans look bad and I for one am sick of the double standards. Exactly how many democrates were envolved in the freddie and Fanny and the banking industry that the taxpayers bailed out. Why arent you people so made about this 2.2 million also steamed about the entire mess we are in. The mess that the republicans wanted to fix years before it went bad but Democrates said there was nothing wrong and kept up the farse. Yea yea.

They sold the property and that 2.2 million should have been paid at closing. I have to wonder who this buyer is dont you?

td

April 18th, 2011
3:19 pm

Still waiting on you libs to debunk my post at 3:05? No answer yet.

Barb

April 18th, 2011
3:20 pm

You go, Tracy D. Well put and in all likelihood you totally “hit the nail on the head,” as sad as it is. Further, I would wager a paycheck that this will slowly die away…as in yesterday’s news.

nita

April 18th, 2011
3:25 pm

I get sick of reading political blogs where the words liberals and republicans are thrown around like a Dr. Seuss book. How about a cheat is a cheat, a liar is a liar, a thief is a thief and your political affiliation has nothing to do with it. How about all of you get your heads out the asses of the democratic and republican parties and stop referring to yourselves as republicans and democrats. How about Wrong is wrong no matter if you are the Pope, president, governor, teacher, preacher, mom, dad, kid. Everybody reaps what they sow and God doesn’t care what your political affiliation is.

Red

April 18th, 2011
3:29 pm

The two dominate American political parties are basically the same with shades of ambiguity between them. Both pander to the coroporate oligarchy that runs The United States of America©.

The two political parties aren’t Apples to Oranges, they’re pan-cakes to flapjacks.

Russ

April 18th, 2011
3:31 pm

Well Well, another politically slanted article written by a politically slanted writer for the politically slanted AJC. At least the article holds true to AJC form: throw out a couple of un-verified “facts”, insinuate that some Republican broke some law, make a couple of mis-leading statements, and wait for the liberal bloggers to wet their panties with joy while sitting at their computers and calling everyone who doesn’t think like them idiots and sheep. You libs are pathetically predictable..

GaBlue

April 18th, 2011
3:31 pm

td demands to know:

“Do you all realize how stupid you sound? Would you all like to revise and extent your statements or would you all like to still look so stupid?”

OMG! Now I know why your words sound SO FAMILIAR! I can’t believe it took me this long to put it together! YOU’re the guy who wrote the best-selling book “How to Win Friends and Influence People!” Whoa! You are SO AWESOME, man! What an inspiration to us all!

GaBlue

April 18th, 2011
3:32 pm

Nita @ 3:25, Well said!

Red @ 3:29, Agreed!