Bank Failure Friday: Still Number One

After a horrible week in Georgia, what better way to end it than have two more Georgia banks fail:

First Choice Community Bank of Dallas and Valdosta-based The Park Avenue Bank were seized and sold to Arkansas-based Bank of the Ozarks, the Georgia Department of Banking and Finance said.

Both banks will reopen under normal business hours as Bank of the Ozarks branches.

That’s the 9th and 10th banks closed in Georgia this year.  As of two weeks ago, Georgia was still a strong number one in bank failures for 2010, a title we also held in 2008.  We were edged out last year, but are on track to unfortunately regain this unwanted title.

H/T to AtlantaNewsFeed

7 comments

    • Goldwater Conservative says:

      not really. The results of unregulated industries are continuing to unfold. It is slowing down, but the federal rules have been on the books since I was child.

      • Bill30097 says:

        Yes but they have not been playing games with the assets like they have in order to force solvent banks into this status before. Wake up and smell the coffee. It is all in how you interpret the rules.

        • Goldwater Conservative says:

          Wake up and learn to do math. The banks being shut down are not solvent. Just because their immediate assets appear to be greater than their immediate deposits does not mean they are solvent.

          It is much easier and less costly to investors and the government when a bank is shutdown and sold to a different bank that is actually solvent than to wait until it is too late. These two banks had about a month, tops, before its customers could not longer use its services or have access to their funds. I know you market fundamentalists types would rather wait until thousands of customers are unable to access their own money…but that is because you have not comprehension of the word “justice.” The bank is not a citizen…its customers are and governments job is to stand up for and protect its citizens. Not banks.

  1. lostinatl says:

    Well hey…if Georgia has to rank near the bottom of the pile in education and access to healthcare at least we can be number one in something!

    Go team Georgia!

    • Goldwater Conservative says:

      Don’t forget Georgia ranks third in personal bankruptcies as well.

  2. saltycracker says:

    The FDIC has done fairly well protecting the public and there doesn’t appear to be any legislators claiming their examinations or bid process to sell banks taken over has been deficient. FDIC shots have come from those that stepped up to defend their colleague on the basis that anyone (the FDIC) can sue (a rarity so far) anyone (the state banking chair) for any reason (70 million – negligence).

    It is tough out there for small banks with limited revenue sources, limited market diversity, a bad real estate market with declining values, high leverage & low depositor confidence.
    It is also tough for a state banking committee to do its job when under a cloud.

    So what additional regulation tools have been proposed ?
    Are we continuing matters that put the small banks at a disadvantage to the multi-state banks ?
    Critics have a lot to say that we are continuing on an unwise path.

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