Friday, of course, has become the day to announce bank closures in Georgia. Short of that, my AJC colleague Scott Trubey reports the following:
The chairman of the panel that oversees banking law in the state House of Representatives has been fined $5,000 by federal bank regulators, after he made overdrafts not allowed because of his role as a bank director.
Rep. Greg Morris, R-Vidalia, told The Atlanta Journal-Constitution the incident that triggered the fine happened a few years ago when he tried to pay property taxes and inadvertently had insufficient funds in an account with the bank were he is a director.
Morris said he resolved the overdraft of around $20,000 the same day with funds from another account.
Morris entered into a consent agreement with the Federal Deposit Insurance Corp. on April 15 to pay the $5,000 penalty. The order was published Friday. An FDIC spokesman declined to comment.
Morris is a board member of Montgomery Bank & Trust of Ailey, about 170 miles southeast of Atlanta. MB&T received a lifeline in December, when a metro Atlanta investment group and customers pumped $14.1 million into the bank to stave off failure.
Morris said he had been cited by regulators before, but not fined, for prior overdrafts. Certain overdrafts are prohibited because they could be considered an improper insider loan.
Walt Moeling, banking attorney with the law firm Bryan Cave, said it’s a relatively minor violation.
- By Jim Galloway, Political Insider