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The Full Story on Small Banks

By Massimo Calabresi | November 8, 2010 | +

Two weeks ago I blogged here about one Georgia town’s loss of faith in government and the economy after its hometown bank failed. The full article is now available online here.

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  • fhmadvocat

    Massimo,

    This was a great article and a perfect microcosm of the financial meltdown of the Great Recession. It is amazing to me that people want to blame the feds and blame the SCBT, who saved what was left of CBT.

    In addition, I loved reading about all that stimulus funding was received by the town of Cornelia. I wonder how many of those people are Tea Party members complaining about government spending the stimulus bill. How many are willing to give back the money for the wastewater plant or the lending fund for small bank?

  • http://milascurtains.wordpress.com milascurtains

    Hmmmmm
    Now Government is responsible for Your small bank?
    Bring it up to Republicans.

  • bankalchemist

    Unfortunately this bank had outlived its ability to manage and gauge risk correctly. To allow such a series of loans to be made by one individual as a matter of fixing a delinquent asset should have never happened outside of the knowledge of the loan committee and audit committee. Each of these groups has a responsibility to preserve and protect the bank when it is in distress. This is a case where the intent to help the customer ran outside of all acceptable standards in bank regulations. I also question where were the attorneys or cpa’s during this period in the banks final melt down. bankalchemist.

  • grape_crush

    Unfortunately this bank had outlived its ability to manage and gauge risk correctly
    .
    Nope. I’d argue that managing and gauging risk became irrelevant.
    .
    Each of these groups has a responsibility to preserve and protect the bank when it is in distress.
    .
    Nope. Nowadays, the only responsibility is to show as much profitability as possible.
    .
    This is a case where the intent to help the customer ran outside of all acceptable standards in bank regulations.
    .
    Nope. This is a case where greed enabled more greed.

  • formerlyjames

    Borrowing from Boehner, America has sent the message. Greed is good. Deregulation is good. Income disparity is good. Small banks don’t matter. Megabanks matter.

  • gysgt213

    Borrowing? Wasn’t that a crazy little thing they used to do in the United States? Now they are loan sharking.

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