On February 15th, the Georgia Banking Crisis was evident.

No one paid attention, so on June 10th, I brought it up again.

June 28th, I thought surely someone will pay attention to this stuff THIS TIME. Somebody?!?

Finally someone does a story on Georgia’s dismal banking system. On November 11th.

  • First, Georgia has more bank failures than any other state in the nation.
  • Second, the Chairman of the Banking Committee is a Hall County Representative. Seems natural to ask the local guy what the hell is going on, right?
  • Third… NO LOCAL MEDIA HAS TOUCHED THIS STORY, including the AJC, which is rapidly becoming the Entertainment Tonight of journalism.

Representative James Mills, a Republican from Gainesville, chairs the House Banks and Banking Committee. He says Georgia’s banks are failing because federal regulators are putting undue pressure on local banks to balance their books.

“When a federal regulator comes and says this piece of property that was worth $1 million last year is now only work $500,000. So what do they do,” asks Mills.

“They turn to the small business man who has a loan out there and say, ‘OK, your payments can be the same, but we need $200,000 more dollars from you for our loan-asset ratio to work out because the value of your property has dropped.’”

Mills’  blames Federal Regulators for the banking meltdown. If this were true, wouldn’t Georgia have the same number of bank failures per-capita as other states? Wouldn’t the pain be distributed equally?

Yet it’s not. Georgia is the cesspool of bank failures. Mills’ has presided over a death spiral of financial regulation, all caused by his poor decision-making and dubious conclusions.

The money quote: Georgia’s banks are failing because federal regulators are putting undue pressure on local banks to balance their books. Because banks should never be pressured to balance their books, right?

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