A metro Atlanta bank is being fined $25,000 by federal authorities who say the bank discriminated against borrowers by publishing marketing materials exclusively in Asian languages. The bank did not admit to any violations by consenting to the fine.
Regulators have closed a small bank in Georgia, bringing the total number of U.S. bank closures to four for this year after 51 closures in 2012. The Federal Deposit Insurance Corp. said Friday that state regulators closed Frontier Bank of LaGrange, Ga. It has nine branches in Georgia and Alabama.
Federal regulators have closed a small bank in Georgia, bringing the number of U.S. banks that have failed so far this year to 32. The Federal Deposit Insurance Corp. said Friday that it seized Montgomery Bank & Trust, based in Ailey.
Georgia banks appear to be turning a corner. A report shows, Georgia banks are profitable for the first time in three years. The FDIC shows earnings for Georgia banks improved by about $2.5 billion last year over the previous one.
The federal government is working to wind down the bank-rescue called the Troubled Asset Relief Program. Three Georgia banks have repaid the government’s investment, but roughly two dozen still have not. And 2011 was a rough year for Georgia banking, with regulators shuttering 23 institutions, the most in the nation.
Federal banking regulators want former officials of Atlanta-based Silverton Bank to pay $71 million in damages following Georgia's largest bank failure. Silverton went belly up two years ago. Now, the Federal Deposit Insurance Corporation alleges, former bank officials followed lax lending policies and bought lavish airplanes and posh buildings while their bank verged on collapse.
The proliferation of bank failures in Georgia has drawn the attention of Congress. The House Financial Services Committee's Subcommittee on Financial Institutions and Consumer Credit will host a hearing in Newnan on Aug. 16. U.S. Rep. Lynn Westmoreland says the hearing will focus on the impact regulations may be having on community banks.
Georgia Rep. Lynn Westmoreland wants the Federal Deposit Insurance Corp. to take a closer look at how it goes about closing banks. Westmoreland said agency regulators have flexibility in how they work with banks that might be in trouble, but they are not using it out of fear they will back a bank that still ends up failing. The north Georgia congressman said he worries the FDIC is closing community banks that could ultimately survive with some help.