Young Jason Shepherd is running as a ‘conservative” or Republican in House District 37. On a PeachPundit thread, candidate Shepherd seems to claim that Georgia hasn’t had that many bank failures.

The Commissioner of Banking and Finance spoke at our Kiwanis Club meeting on Thursday. He pointed out that part of the reason we’ve had a lot of bank failures was Georgia’s banking laws. Up until the 1990s, if you were a bank and you wanted to expand to the next county over, you could not open just a branch, but you had to charter a completely new bank. For example, ABC bank in Cobb County, a state chartered bank, wanted to expand to Cherokee. They couldn’t just open a branch like the national banks could, rather they had to charter ABC Bank of Cherokee with a separate charter and board of directors. If they do this again in Paulding, Fulton and Forsyth, they have 5 locations of ABC Bank, but they are all considered separate banks.

Now let’s say ABC bank goes under and although they were separate charters, the assets were shared because they had the same owners and investors and pulled risk like they were one big bank. However, on paper, it would look like 5 banks failed, not just one.

Candidate Jason Shepherd has been asked for proof that even one of Georgia 40 failed banks was ‘over-counted’ as he claims.

He could provide no proof. Refused. Expected others to do their own research.

How Republican!

BTW, bank branches aren’t counted as seperate failures. No matter where the branches are located. A good example would be Community Bank and Trust, founded in 1900, floundered in January 2010 amid scandal rumors. This Georgia bank had 36 branches in two states. It’s not counted as 2 failures in two states or 14 failures in 14 counties. Just as one big bank.

Expect Republicans to use this ruse over and over again. Just ask the Chairman of the House Banking and Finance Committee. He knows everything about banking.

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