First Georgia Community Bank now under “strict oversight” of the Fed.

It’s not just high-flying Wall Street banks who’ve felt the crunch:

The order covers oversight of the Jackson, Ga.-based bank’s reviews of staff and management, lending practices and credit administration, credit risk management, asset improvement, allowances for loan and lease losses, earnings plan and budget.

Among other things, the 15-page agreement requires the company to, within 60 days of the order, send the Fed a written plan designed to improve the bank’s position through repayments, amortization, liquidation, additional collateral or other means on each loan or other asset in excess of $100,000.

First Georgia Community also within 60 days must show a plan to improve identification of problem loans and procedures to identify, monitor, and control risks associated with concentrations of credit by types of loan and borrower.

The company has to give the Fed a written report detailing plans to keep sufficient capital at the bank.

13 comments

  1. StevePerkins says:

    My wife manages financial accounts for homeowner associations… and the list of local banks on their “Keep a Sharp Eye on THOSE Guys!” list right now would surprise you. I recently moved my checking and money market accounts to a local credit union that’s stayed out of the subprime business. I would have done that a long time ago, but I mistakenly thought the word “union” meant communism. Oops.

  2. GreenAllTheWay says:

    I wonder where an assistant at a homeowners assocaiton would get a list of troubled banks? lol….you guys kill me.

  3. StevePerkins says:

    I didn’t say she was on the board of the neighborhood HOA. I said she ran the accounting department for a company that manages several hundred HOA’s… and yeah, they keep an eye on the local banks’ numbers so as to advise HOA’s on where to keep their money. Sheesh, if I had said that Ben Bernake was in my Friday night poker game, I could understand the snark… but you’re just being an ass.

  4. GreenAllTheWay says:

    and before you answe, know that it is a federal crime to cuase anything that causes a run on any FDIC insured Bank, and KNOW that since the FDIC was created not one depositor has ever lost a covered deposit.

  5. StevePerkins says:

    Uhh… anyone who wanted such information could just put the necessary amount of time into monitoring the published numbers that all banks make public. As for federal crimes, is the Associated Press going to Guantanamo for writing stories this week about Washington Mutual’s troubles?

    and before YOU answer, trying running a spelling/grammar check.

  6. GreenAllTheWay says:

    So when a homeowners association board membe is comparing all of the numbers on the web, which numbers does this board look at?

  7. GreenAllTheWay says:

    Sir, if your wife and her HOA is looking on the web and determining which bank’s are about to fail based on that information, you are as stupid as I thought.

  8. GreenAllTheWay says:

    lol……I am just glad your wife’s HOA has figured out the banking crisis. Maybe the can tackle North Korean and Iran, next then Cancer Research?

  9. Tea Party says:

    This is the language on Sec. Paulsons’ $700MM plug in the fiancial crisis. My first ex-wife found this in her gay lovers bathrobe: Note Sec. 8

    Section 1. Short Title.
    This Act may be cited as ____________________.
    Sec. 2. Purchases of Mortgage-Related Assets.
    (a) Authority to Purchase.-The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.
    (b) Necessary Actions.-The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:
    (1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;
    (2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;
    (3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;
    (4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and
    (5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.
    Sec. 3. Considerations.
    In exercising the authorities granted in this Act, the Secretary shall take into consideration means for-
    (1) providing stability or preventing disruption to the financial markets or banking system; and
    (2) protecting the taxpayer.
    Sec. 4. Reports to Congress.
    Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.
    Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.
    (a) Exercise of Rights.-The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.
    (b) Management of Mortgage-Related Assets.-The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.
    (c) Sale of Mortgage-Related Assets.-The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.
    (d) Application of Sunset to Mortgage-Related Assets.-The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.
    Sec. 6. Maximum Amount of Authorized Purchases.
    The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time
    Sec. 7. Funding.
    For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.
    Sec. 8. Review.
    Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
    Sec. 9. Termination of Authority.
    The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.
    Sec. 10. Increase in Statutory Limit on the Public Debt.
    Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.
    Sec. 11. Credit Reform.
    The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.
    Sec. 12. Definitions.
    For purposes of this section, the following definitions shall apply:
    (1) Mortgage-Related Assets.-The term “mortgage-related assets” means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008.
    (2) Secretary.-The term “Secretary” means the Secretary of the Treasury.
    (3) United States.-The term “United States” means the States, territories, and possessions of the United States and the District of Columbia.T

  10. Yeah, Section 8… Congress finally discovers Article III Section 2, and instead of using it legitimately to rein in the runaway Judicial Branch, they use it to give the Executive Branch more power than it’s ever dreamed of, even under Nixon.

    Bunch of sniveling cowards in Congress, most of them in the GOP. It’s why we lost that branch two years ago, and why we’re in danger of losing the Executive this year.

Comments are closed.