House banking chairman fined $5k by FDIC

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

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32 comments Add your comment

Clinton "Skink" Tyree

May 27th, 2011
3:00 pm

Everyone else is on their way out of town and here I am offering a pathetic “First” to post.

It stuck me as funny that someone associated with a failed bank should be elected Chairman of the House Banking Committee, but I said, this is Georgia and then I understood.

And, so it goes . . . .

Danny O

May 27th, 2011
3:11 pm

I do not believe that Montgomery Bank & Trust has failed yet. But I think it is near the top in the list of most likely to fail.

You may be confusing Rep. Morris with Sen. Jack Murphy, the chair of the Senate Banks and Financial Institutions Committee who has been sued by the FDIC for alleged grossly negligent actions (or lack thereof) as a board member of the failed Integrity Bank.

DannyX

May 27th, 2011
3:16 pm

Don’t forget, the chairman of the Senate Banking Committee is also getting sued by the FDIC, State Sen. Jack S. Murphy, R-Cumming.

Where did Retired Soldier go? “Sick of the Republicans” post in the previous thread wins post of the day, what great timing!….Here is a recap…

“Oh that’s right, if you are Republican you can break all the rules; be unethical; and be a crook and it is okay.

Congrats! You win a one week stay at the Graves Meth Motel.

jd

May 27th, 2011
3:24 pm

good to see our representatives are good businessmen!

postal

May 27th, 2011
3:51 pm

if you post “first” does that qualify you for some award? I only see these people do this on the ajc blogs. what gives?

Tilly the Alltime Teller...

May 27th, 2011
4:03 pm

I get tired of all these cases settled “without admitting guilt”. I want to see people crying and begging for forgiveness or something like that.

As for “first” it has become an AJC blog fad thing. I would NEVER do it though.

Sixth….

tim

May 27th, 2011
4:11 pm

I DIDN”T DO ANYTHING WRONG BUT I’LL PAY ANYWAY. WHAT A CROCK!

Sick of Republicans

May 27th, 2011
4:16 pm

@DannyX – thanks but no thanks – I’ll stay at home and sleep in my own bed; the beds at Graves’s motel are probably dirty; no clean sheets available; and a meth lab in every room.

DannyX

May 27th, 2011
4:20 pm

Sick of Republicans, well it was free, maybe Rep Woodall will accept on your behalf. Because it is free! Because it is FREE!!

Will

May 27th, 2011
4:22 pm

I wonder what Mr. Morris pulls down in salary. I wonder if he is one of those grossly overpaid Bank CEO’s etc. I suspect that $5,000 is just a slap on the wrist. He probably got that and a lecture that consisted of “You’re forgiven fella. Go forth and sin no more.” What about a real fine — $50,000 smackers, maybe. Possibly then he wouldn’t be able to sin ni no more. Yep, we live in a plutocracy.

Clinton "Skink" Tyree

May 27th, 2011
4:23 pm

@Danny O — Thanks. There’s just too many scumbags for my old brain to keep up with ‘em.

Clinton "Skink" Tyree

May 27th, 2011
4:31 pm

@Postal: No special benefits, cards, buttons, badges or plaques. But I was first for the first time and at my age being first at something besides going to the bathroom is something special.

Jamey

May 27th, 2011
5:46 pm

Mr. Morris is not a slaried employee nor an employee of the bank…nothing but a director of the bank…which means his offense has to do with something he did that violated some rule related to a director…FDIC has many rules like you can only borrow so much money, you can not have certain conflicts of interest, you have to have certain financial strength, you can not overdraw you checking account, you must file regular reports and many little things that are simply part of the process of being a director..tthe FDIC can fine you for just about any rule violoation…right now, the FDIC needs every dime they can get because there are so many failed banks in Georgia…regulators are looking for ways to collect extra dollars for the insurance fund most directors have strong financial standing….so right now, director’s violations are good targets for extra fees.

John Rogers

May 27th, 2011
6:03 pm

Enter your comments here

Defrocking Department

May 27th, 2011
6:20 pm

Did Bishop Eddie Long come out ot the closet yet?

khc

May 27th, 2011
7:09 pm

and former us senator gregg goes to work for goldman sachs, while he defended their 10b bailout and high compensation…….

what a fine state of denial we live in

May 27th, 2011
7:29 pm

Don’t forget that the Republicans are the party of values!!

ga female

May 27th, 2011
9:53 pm

I hope they look at Former Ga Rep Leg. Tommy Davis of Columbus, that guy was on the Banking Committee and on the board of at least two banks. Then he got on the board of a condo in Florida. Made a deal with the developer for private deeded parking spots for himself, while the associated management company ripped up off. Then next he hired an HOA manager that he let have signing ability on the check book ( against the law). The guy ripped off the HOA of at least $80K, pleaded guilty to 38K. The guy that Tommy Davis hired, and didn’t want to prosecute. He had some backdoor deal with the Florida Bank and this guy that stole the Home Owner money.

All Tommy Davis R, Columbus could do is brag about being on the Banking Committee and Bank Boards. He was nothing but a drunk, dumb F–k. I with a witness this wonderful christian down a whole bottle of wine then get in his SUV to make the 3 hour drive to Columbus. We were going to call the cops, but then He would have told them he was “Tommy Davis”.

yuzeyurbrane

May 27th, 2011
10:34 pm

Has “con man” become synonymous with “Republican legislator”?

eatmotacos

May 27th, 2011
11:02 pm

@yuzeyurbrane

We have the most corrupt state government since the reconstruction era. What I can’t comprehend is why in the hell do they continue to elect these people. I honestly believe that they would elect Charles Manson if he had an R after his name. It doesn’t matter what they have done in the past, it can all be explained away as political, and fools buy it. It amazes me, given the quantity of scandals that Deal has been envolved in, that he could have possibly been elected. It’s not like the Lincoln era, when it took a month to get a newspaper and you had to read it by candlelight. Just Google Deal’s name + scandal and review what all he has been envolved in. It is astounding that Georgia voters are that ignorant and lazy.

double

May 27th, 2011
11:53 pm

Eatmo if you do not comprehend I am much surprised.More than 1.7 mil.for the inaugral.

Viet Vet

May 28th, 2011
6:30 am

Until rural white Georgians and urban black Georgians vote their economic interests Georgia will continue to get poorer, dumber, sicker and more unhappy. It’s going to a take a huge amount of pain to get both groups to wise up. Look out below!

Buckhead Boy

May 28th, 2011
6:46 am

Well, these are at least real banksters, and not just tools of the banksters.

One has to conclude that those who continue to elect the Republicans either have no shame or no sense.

Viet Vet, please include the educated and middle class urbanite and suburbanite among those who had best wise-up!

The Centrist

May 28th, 2011
7:52 am

The reason that government has regulations is an attempt to protect citizens from those who lie, cheat, and steal. The reasons why government has so many regulations are (1) the LCS’er find new ways to LC&S, while (2) government is denied the resources to enforce the ones they already have. Directors used to use small financial institutions as their private “piggy banks.”

Winfield J. Abbe

May 28th, 2011
8:30 am

Georgia has the “distinction” of having the most failed banks in the nation, about 65. Remember these banks were not shut down by Georgia regulators, but federal ones. Imagine what it would be like if we were back in the 1930’s with no F.D.I.C. insurance? Next time you criticize the federal government, say a prayer of thanks for this insurance since the Georgia good old boys who are both lawmakers and often bank board members won’t do anything for you. They agree with Willie Sutton. They rob banks because that is where the money is or was. In Georgia they regulate landlords more than banks and nursing homes.

Hide-n-seek

May 28th, 2011
11:37 am

Are there any bankers who are below the poverty level? Did anyone notice that most of them are white males? I rest my case.

ANGRY AS HELL

May 28th, 2011
12:31 pm

Most of you complaining about the two chairmen of the House and Senate banking committees probably voted for these guys just because they”re Republicans. Tsk, tsk !!! Don’t complain–you deserve what you got. Those of us who didn’t vote for guys like these, did not deserve to get what we got.

yuzeyurbrane

May 28th, 2011
12:49 pm

Eatmo, I think successful conmen are more charming than ordinary folks or else they would not be successful conmen.

eatmotacos

May 28th, 2011
6:25 pm

“Oh-oh! Politicians share personality traits with serial killers: Study”

“…..Kouri, who’s a vice president of the National Assn. of Chiefs of Police, has assembled traits such as superficial charm, an exaggerated sense of self-worth, glibness, lying, lack of remorse and manipulation of others.

These traits, Kouri points out in his analysis, are common to psychopathic serial killers.

But — and here’s the part that may spark some controversy and defensive discussion — these traits are also common to American politicians. (Maybe you already suspected.)”

“LA Times” 6/5/09

eatmotacos

May 28th, 2011
6:55 pm

“The CEO as psychopath”

“Psychopaths are people who are amoral, ruthless, pathologically selfish and utterly unburdened by qualms of conscience. You find a lot of these folks in prisons. You can also find them in corporate boardrooms, the magazine reports.”

7/8/05 Washington Post

No surprise here. Georgia apparently provides the perfect environment for phychopaths to thrive in.
The state capital could double as a phych ward.

Kenny

May 28th, 2011
8:24 pm

Be interesting to see if the guy tries to pay his $5K fine with another overdraft.