Regulators say they have closed banks in North Carolina and Georgia, bringing the number of U.S. bank failures to 12 this year. The Federal Deposit Insurance Corp. on Friday seized Pisgah Community Bank, based in Asheville, N.C., and Sunrise Bank, based in Valdosta, Ga.
Regulators say they have closed banks in Georgia and North Carolina, bringing the number of U.S. bank failures to 10 this year. The Federal Deposit Insurance Corp. on Friday seized Douglas County Bank, based in Douglasville, Ga.
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.
On Friday, Georgia suffered its 17th bank failure this year. Federal regulators shut-down Statesboro-based First Southern National Bank. It was sold to Albany-based Heritage Bank of the South. Georgia leads the nation with 68 bank failures since the middle of 2008.
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.