Tuesday, May 5, 2009
News Georgia's bank failures earn state recognition!
Posted by Thomas Wheatley @thomaswheatley on Tue, May 5, 2009 at 6:15 PM
The AP's Russ Bynum writes an excellent piece that helps explain why Georgia has found itself at the tippity top of a terrible list — the state with the highest number of bank failures:
Experts say it’s a combination of an antiquated state law that favored a plethora of smaller community banks over multi-branch giants; a population explosion in metro Atlanta that fueled massive suburban real estate development and a crush of new banks formed to cash in on the Atlanta boom shortly before the market tanked.Georgia’s diversity of small banks was an asset when the economy was strong, with consumers benefiting from competitive rates and broader sources of credit, said James Verbrugge, a professor emeritus of finance at the University of Georgia’s Terry College of Business. It became a liability when the bottom fell out of the housing market and smaller banks had less capital to weather the crisis.
The excerpts don't do the article justice. Give it a read for your daily dose of edumacation.
(Hat tip to Travis Fain)
Comments (2)
Showing 1-2 of 2
May I please call BS on all the "Banking Experts" in Georgia? Afterall, they are the ones that sat blindly and dumbly by while all this mess accumulated in the first place: "Experts say it’s a combination of an antiquated state law that favored a plethora of smaller community banks over multi-branch giants;" Excuse me, but didn't mega-multi-branch Bank of America come back to the great-grandchildren-of-current-taxpayer's well today for $34 more Billion to coverup their sins of corruption??? http://finance.yahoo.com/q?s=bac Reports: Wells Fargo needs $15B capital boost following stress test at bizjournals.com(Wed 6:05pm) Break Up the Banks at BusinessWeek (Wed 5:53pm) [$$] BofA Faces $34 Billion Gap at The Wall Street Journal Online (Wed 5:44pm) Details of 'stress tests' of 19 US financial firms AP (Wed 5:30pm) BANKING INDUSTRY NEWS UPDATED MINUTE BY MINUTE http://biz.yahoo.com/ic/news/410.html
like
dislike
Latest in Fresh Loaf
-
'Ex-gays' gather outside Atlanta this weekend
Meanwhile human rights groups fight the notion that "ex-gay" is a thing
-
CNN cancels Atlanta debate 1
Everybody cry
-
ARC's new map of transportation-tax projects is suitable for framing 3
Voters will decide 1-cent sales tax measure in July
- More »
Author Archives
-
Rogue pecan collectors on the loose in Old Fourth Ward 4
Neighborhood resident says man throwing large branches in neighbor's tree claims there's an 'active market'
-
Legoland's Atlanta landmarks chosen 13
No plans to recreate massive sea of automobiles gridlocked on I-75
- More »
