Rockbridge Commercial Bank failed on Friday, December 18th. Rockbridge had been formed as a state chartered bank. The type of bank Representative James Mills ‘oversees’ from his lofty perch as Chairman of the Banks and Banking Committee.

Mills has stated in public that banks are under ‘undue’ pressure from the Federal Government. Well, explain it to me like I’m a three year old, Mr. Mills.

Why did the Georgia State Banking Commission close down this bank?

Was it because this bank promised to make loans to small and medium sized businesses but then invested heavily in REAL ESTATE? Over 70% of all loans were in real estate. Only 20% of the loans were to businesses.

So you closed them down for lying like Glenn Richardson. Well done. Oh, but you didn’t close it down for that reason.

The bank had those theoretical losses in real estate, didn’t it Mr. Mills. About $124 million dollars in theoretical losses, all to be paid by taxpayers.

So of a bank that said it had over $291 million dollars, it only really had $167 million. Is that how it worked?

How about bad loans? That would be the ones that were past due more than 60 days*.

Over 44% of the construction and development loans were paying no interest or principal, part of the 34% of all real estate loans that were paying no interest or principal.

And that $28 million dollars in operating losses. That’s just paper losses. In paper dollars.

And this bank was founded with $36 million in paper dollars. The ‘parent company’ infused another $18 million in three years. So with capital losses of $52 million dollars and losses to taxpayers, that’s $176 million dollars lost in 3 years on your watch as Chairman of the Banks and Banking Committee.

So where were you, Representative Mills? Asleep at the wheel? K-Mart? Jail?

Rumor has it, Mr. Mills, that you won’t be Chairman of the Banks and Banking Committee come January.

Thank Gawd.

Advertisements