Regulators shut bank in Ga.; 17 failures this year

AP ^ | 2009-03-06

[rabscuttle385]

WASHINGTON (AP) — Regulators on Friday shut down Freedom Bank of Georgia, marking the 17th failure this year of a federally insured bank, and more are expected to succumb amid a deepening recession.

The Federal Deposit Insurance Corp. was appointed receiver of the bank, located in Commerce, Ga. It had about $173 million in assets and $161 million in deposits as of March 4.

The FDIC said the bank's deposits will be assumed by Northeast Georgia Bank, located in Lavonia, Ga. Its four branches will reopen Monday as offices of Northeast Georgia Bank.

Besides assuming the deposits of the failed bank, Northeast Georgia Bank agreed to buy about $167 million of its assets. The FDIC will retain the rest for eventual sale. The FDIC also entered into an agreement with Northeast Georgia Bank under which the bank will share in any losses on around $96.5 million of the failed bank's assets.

The FDIC estimates that the cost to the deposit insurance fund from the closing of Freedom Bank will be $36.2 million. Regular deposit accounts are insured up to $250,000.

[rabscuttle385]

*Ping!*

[eyedigress]

They keep making my bank take over this GA. crap.

[org.whodat]

LOL, another story yesterday, this bank has been in deep doo doo since last summer.

[tubebender]

The figures being bandy about here have caused me to lose my appetite for the $10,000,000 Super Lotto. I own stock in a local bank and the new FDIC fees causing the board to cry foul for having to cover the stupidity in the bull pits...

[GOPJ]

99% of Lawyers give the rest a bad name..

That, tubebender is one funny tagline.

[tubebender]

Thanks but I stole it from a eMail the other day. In thinking about the scale of these Ponzi deals Fwank and Dood covered for makes those Nigerian eMail offers look damn good right now...

[101voodoo]

So far this is not close to the rate we had banks fail in the S&L crises of late '80's into the early '90's. However it does serve to push the liberal agenda of sowing fear and depression among the population.

"The last time the agency was hit hard with failures was during the 1990-91 recession, when 502 banks failed in three years." http://www.washingtonpost.com/wp-dyn/content/article/2008/03/25/AR2008032502984.html

[101voodoo]

Seventeen banks? Not even close to the rate of failuyre during the S&L fiasco of the late '80's-early '90,s. However it does serve to scare and depress people which the liberals love to do in ordser to then hold themselves out as the ones to "take care of the problems"

"The last time the agency was hit hard with failures was during the 1990-91 recession, when 502 banks failed in three years."

http://www.washingtonpost.com/wp-dyn/content/article/2008/03/25/AR2008032502984.html

[bankcritic]

I don't know why the government is even trying to help out these banks, its not like they can stop a recession by propping up failed institutions. People's deposits are insured already so the people with money in the bank are taken care of (to a point), so why try to "recapitalize" the bank with taxpayer money when its only going to go under again in a few months, they're just prolonging the agony.

The government would be better served by lowering taxes and cutting spending. The government can't really control the economey anyway nor should it try IMO (Russia tried that and see how well it worked), they should focus on keeping conditions right for a sound economey to function (sound money, low taxes, low inflation, enforcement of accurate business reporting) and let the market take care of itself. The stock market does a better job of punishing the bad and rewarding the good than anyone else.

[GOPJ]

If you’re going to take one, best to take a great one!!! I’m sure the person who made it up is thrilled it’s getting air time.

[pointsal]

Right...tubebender has a pithy tagline.

[GOPJ]

"The last time the agency was hit hard with failures was during the 1990-91 recession, when 502 banks failed in three years." http://www.washingtonpost.com/wp-dyn/content/article/2008/03/25/AR2008032502984.html

Banks like CITI, Bank of America and Chase might fail - trust me, those would trump all the smaller banks that failed in the '90's. It's apples and oranges. What bank failed in the 90's that was anywhere near the size of a Washington Mutual or Wachovia ? This is different - it's worse. Much worse.