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Saturday, August 1, 2009 - 4:43am

FDIC Orders Reform of 3 GA Banks

Three Georgia banks must make reforms as ordered by federal regulators.

The FDIC served ‘cease and desist’ orders to the Bank of Georgia in Peachtree City, Mountain Heritage Bank of Clayton County and Satilla Community Bank of St. Mary’s.

That’s the most serious type of enforcement action aside from failure. Regulators say they believed the banks were using "unsafe and unsound" banking practices.

They have been told to increase capital, to be more aggressive about writing off bad loans and to improve lending practices and board oversight.