Atlanta-based SunTrust Banks Inc. has informed employees that it will cut 800 positions in its mortgage business. The bank joins others in a trend that's led to lost jobs as mortgage interest rates rise and fewer homeowners refinance their loans.
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.
State Bank and Trust ranked number one by industry magazine. Bank Director Magazine says the bank is strong in assets, capital and profitability. State Bank has taken over ten failed Georgia banks in the last two years.
Two-thirds of the Georgia’s banks had improved earnings in 2010 and fewer institutions operated in the red, according to the fourth-quarter banking profile from the Federal Deposit Insurance Corporation. Georgia banks lost $1.6 billion in 2010, less the half their losses in 2009. But nationwide, banks made more than $87 billion altogether last year.