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Federal regulators targeting Ga. banks, Broun says

Tuesday, May 22, 2012 8:31 AM
Last updated 9:30 PM
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WATKINSVILLE, Ga. — Federal regulators are targeting banks in Georgia and Texas for closure even when their balance sheets are healthy, according to U.S. Rep. Paul Broun.

U.S. Rep. Paul Broun said during a campaign stop Monday that federal regulators are targeting banks in Georgia and Texas for closure even when their balance sheets are healthy.  MORRIS NEWS SERVICE
MORRIS NEWS SERVICE
U.S. Rep. Paul Broun said during a campaign stop Monday that federal regulators are targeting banks in Georgia and Texas for closure even when their balance sheets are healthy.

Georgia leads the nation in bank failures since the 2008 financial collapse. Broun said bankers have told him that the Federal Deposit Insurance Corp. will continue to close Georgia banks until only 75 are left.

“I don’t know why,” he said during a campaign stop Monday. “Maybe because we’re a Republican state.”

The FDIC doesn’t close failed banks, spokesman David Barr said. That’s the responsibility of the state agency that chartered the bank — in Georgia’s case, the Department of Banking and Finance — or the Office of the Comptroller of the Currency for nationally chartered banks, he said.

Broun was an investor in a Carrollton bank run by his brother that failed in 2010. He said he was just a shareholder and wasn’t involved in the day-to-day operations.

Banks are being forced to write down performing loans, decapitalizing the banks, because of the mark-to-market accounting rule, Broun said. The rule requires banks to account for the current value of an investment, rather than the amount they paid, which proponents say gives a truer picture of their financial health.

Broun also blamed bank failures on federal laws like the 1977 Community Reinvestment Act, which bars lenders from discriminating, and the 2010 Dodd-Frank law regulating Wall Street, as well as political pressure the defunct liberal group ACORN put on banks to loan money to people who couldn’t pay it back.

State Rep. Chuck Williams, R-Watkinsville, a banker, said he’s not sure mark-to-market is a good rule, but regulator enforces it equally across the board. Most of the Georgia banks that went bust failed because they had too many residential construction loans on their books when the real estate market crashed, he said.

“I don’t know if there’s a targeting of any particular state,” Williams said.

State and federal regulators have closed 76 Georgia banks in the past four years, the most of any state. Only nine banks in Texas have failed since 2008.

Broun, an Athens Republican, is kicking off his re-election campaign this week with a bus tour of the 25 counties in his 10th District. He stopped at Harris Shoals Park on Monday, speaking to about 20 supporters, including Williams, Oconee County Commissioner Chuck Horton and Sheriff Scott Berry.

He said his JOBS Act bill, which would eliminate taxes on corporations and capital gains, would create millions of jobs.

“We’ve got to have policies like that instead of policies that destroy the free market economy like the (Obama) administration has put in place,” he said.

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Retired Army
17512
Points
Retired Army 05/22/12 - 08:50 am
6
3
Bankrupt Broun

So, now ol' fiscally and morally Bankrupt Broun is an expert on financial policy?

Because we're a Republican state? Can we add paranoia to his resume?

I wonder if we can get that character Alvin Green over in South Carolina to move here and run against him? Oughta be even money.

broad street narrow mind
348
Points
broad street narrow mind 05/22/12 - 09:40 am
0
0
broun keeps looking worse and
Unpublished

broun keeps looking worse and worse, which is saying something.

Little Lamb
43813
Points
Little Lamb 05/22/12 - 10:12 am
4
1
Don't believe the bankers

You can see what's happening here.

Broun said bankers have told him that the Federal Deposit Insurance Corp. will continue to close Georgia banks until only 75 are left. . . . The FDIC doesn’t close failed banks, spokesman David Barr said. That’s the responsibility of the state agency that chartered the bank — in Georgia’s case, the Department of Banking and Finance — or the Office of the Comptroller of the Currency for nationally chartered banks, he said.

The bankers are whining to their representative that they want relief from regulation. At least give Broun credit for exposing the bankers’ whines. Give him credit for transparency.

For some reason or another, Georgia seems to be a state that likes small, local banks. Those banks made loans on inflated home values to risky borrowers in 2006, 2007, and 2008 — and those banks were not sophisticated enough to sell those mortgages to Fannie Mae or Freddie Mac or to some other mortgage re-packagers (derivative funds). Maybe the 75 banks left after the closures will have smarter management than the ones that closed.

broad street narrow mind
348
Points
broad street narrow mind 05/22/12 - 10:48 am
0
0
good idea- don't believe bankers
Unpublished

were the "bankers" broun spoke with his brothers? himself?

kiwiinamerica
924
Points
kiwiinamerica 05/22/12 - 11:25 am
0
0
Complete nonsense
Unpublished

Broun is talking out of his rear end.

There are many banks still holding huge amounts of toxic debt on their books which has NOT been marked to market value and these banks are effectively insolvent. The suspension of "mark to market" during the financial meltdown in 2008 was all that saved many of these institutions and because housing values are still well below what they were in '08, these banks are still underwater.

They OUGHT to be made to eat their own cooking and be shut down. It has nothing to do with Georgia being a Republican state.

happychimer
15807
Points
happychimer 05/22/12 - 11:57 am
4
1
So Broun wants to eliminate

So Broun wants to eliminate taxes on corporations. How many corporations is he involved in? Those same corporations he wants to not have to pay taxes are the same corporations paying their CEOs millions every year.Broun is a clown.

my.voice
4646
Points
my.voice 05/22/12 - 12:14 pm
1
4
Regardless of feeling towards

Regardless of feeling towards Broun, we are sliding faster and faster into the socialist state that the liberals want. You can CALL it anything you want, but once we are THERE, that's what it will be and NOBODY but the ruling class will be happy.

happychimer
15807
Points
happychimer 05/22/12 - 12:20 pm
4
2
Broun's policies are for the

Broun's policies are for the rich only. Do you really think those corporations will create more jobs once they are tax free? No. They will pay their ceos more than they already pay them.

12barblues
238
Points
12barblues 05/22/12 - 12:28 pm
4
1
Ridiculous

Ridiculous. If you are going to say that the FDIC is unfairly targeting Georgia banks, then you probably should have some sort of an explanation why. “ Maybe because we’re a Republican state" just doesn't cut it.

JohnBrownAug
1962
Points
JohnBrownAug 05/22/12 - 02:08 pm
2
0
I like Broun when he...

Y'all stop picking on Paul Broun. I love it when he does the Pledge of Allegiance without stopping after one nation.

Little Lamb
43813
Points
Little Lamb 05/22/12 - 02:35 pm
0
2
Columbia

If you live in eastern Columbia County you won't have Paul Broun to kick around any more. You have been drawn into the 12th District.

JohnBrownAug
1962
Points
JohnBrownAug 05/22/12 - 05:41 pm
3
0
LL, Yeah, but....

Too bad Paul Broun and Lee Anderson can't be running against each other. That would be hilarious.

Techfan
6461
Points
Techfan 05/23/12 - 06:31 am
2
0
Almond vs cashew?

Almond vs cashew?

JohnBrownAug
1962
Points
JohnBrownAug 05/23/12 - 07:47 am
1
0
Whatever kind is in the

Whatever kind is in the fruitcake.

Little Lamb
43813
Points
Little Lamb 05/23/12 - 08:01 am
2
1
Anderson

It would be fun to see Lee Anderson win the Republican nomination and then have to debate John Barrow during the campaign. Barrow would chew up and spit out Anderson much the way Max Burns did with Champ Walker a few years ago.

Little Lamb
43813
Points
Little Lamb 05/23/12 - 08:02 am
0
1
Hand it to him

I'll give him this, though — Lee Anderson has the best campaign yard signs.

faithson
4783
Points
faithson 05/23/12 - 10:08 am
1
0
Pragmatic Farmers are what we need

I have always said, when the farmers were 'kicked' out of politics by the bankers and lawyers we lost a voice in government that would come to haunt us. Growing up in central Ohio among the farming community I know of what I speak. Farmers are practical republicans who's world view is based on the 'facts' of simple economics. Knowing Lee Anderson as I do from working with him over the years, I cannot think of a better man of character to represent us in congress, southern drawl and all. Even some of us democrats understand that we desire the 'best' man to represent us. Don't short shrift Lee, he is a man you can depend on.

faithson
4783
Points
faithson 05/23/12 - 10:25 am
2
0
back to bombastic Broun

I sure hope that the blinders so many republicans have on don't keep them from seeing how completely out of touch this man is. My Dr. brother in law is familiar with this man and holds him in disrepute, liked his father (also a Dr.) but this branch of the family tree didn't turn out well. Enough said on my part.

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