Jay Bookman follows up on the same issue that I have been pounding for a year now. Why isn’t the Georgia Banking Failure being investigated? By the legislature, or the media, or SOMEBODY?!?!

Last week, the Federal Deposit Insurance Corp. closed three more banks in Georgia, confirming the state’s reputation as the epicenter of the banking crisis. More than one in six bank closings this year were in Georgia.

State regulators played a role in many of those closings. In fact, 20 of the 24 Georgia banks shuttered this year were chartered by the state, meaning that the Georgia Department of Banking and Finance was partly responsible for oversight of those banks.

So what happened? Did state regulators have the resources to do their job? Did the agency lack the will to intervene with banks? Why did it let banks load up on loans to developers, in effect putting all their eggs in one basket?

Bookman’s idea is that the representatives on the banking committee are involved as board of directors on different banks. As such, they’re not eager to enforce regulation or ask questions when banks go belly-up.

UPDATE: Bookman posted the following disclaimer:

This post has been edited for accuracy. A previous version reported that House Banking Committee Chairman James Mills was a director of state-regulated Creekside Bank. He is not and has never served in that capacity, and I apologize for that mistake.

True, but Mills’ is a shareholder in Creekside Bank and Branch Banking & Trust. So it’s relevant to ask Rep. Mills – what happened on your watch? And is it ethical to own shares of banks when you are CHAIRMAN OF THE HOUSE BANKING COMMITTEE?