WTF Georgia? TWENTY bank closures? What's the DEAL in Georgia?

[PassingFair]

I noticed the other day on an interactive map of bank
foreclosures, that Georgia has WAY more than
its share of them.

Was it the super-lax regulations there,
the bogus housing boom, extreme criminal
graft, or all of the above.

WTF?






http://www.businessweek.com/investing/wall_street_news_blog/archives/2009/10/weekend_reading.html

[DJ13]

1. Atlanta was one of the fastest growing metro areas over the last 10 years

That usually indicates a lax regulatory environment, in everything from mortgages to commercial real estate.

[PassingFair]

2. But that was happening in other areas as well...like Nevada.

And Florida.

This looks weird.

[Warpy]

3. Probably all of the above, plus when I worked for the Fed

more years ago than I care to admit to, there were a lot of iffy little banks in rural Georgia that didn't conform to regulations and weren't part of the Fed.

While most of those probably got bought out by the big guys, the ones that didn't are likely the ones going under.

[TNDemo]

4. Since you work for the fed,

how concerned should I be that my two banks (not savings - just checking and mortgage) now have a one star rating on bankrate? FDIC insured.

[Warpy]

5. Worked, past tense, a very long time ago.

I think I told you earlier to keep a reserve of cash on hand in case either or both of those banks close for a couple of weeks.

Theoretically, the FDIC will insure the banks reopen under their auspices and you can eventually do business as usual.

You just won't be able to get to your funds while they're closed and the FDIC is doing the auditing.

[TNDemo]

6. Oh, sorry.

I didn't realize that was you.

[AtheistCrusader]

7. Possible Georgia is just catching up to Florida?

Florida was a bloodbath last year, might be some lag outside the state. Plus the economy is pretty bad, so things like tourism and gambling are actually suffering.

[stevebreeze]

8. Illinois is #2 with 17.....not much similarity in growth

I don't even have a guess as to why.

[conscious evolution]

9. All of the above

plus,Georgia lagged behind the rest of the country when things started crashing.Don't know why but it was something I have been noticing for several years.