Two Middle Georgia banks under increased oversight by regulators

Macon.Com:

Two banks in Middle Georgia have joined the growing ranks of stressed banks that fall under greater scrutiny of state and federal regulators.

The Federal Deposit Insurance Corp. released Friday a list of orders of administrative enforcement actions taken against banks in February.

The Bank of Perry and Peoples State Bank in Jeffersonville each were issued a consent order, formerly called a cease and desist order.

Both banks signed the orders issued by the FDIC “without admitting or denying the charges of unsafe or unsound banking practices,” the documents state.

The strongest language was in the order for Peoples State Bank, which is part of Capitol Bancorp based in Lansing, Mich. — itself under a written agreement with the Federal Reserve Bank of Chicago.

The order states: “Within 30 days from the effective date of this order, the bank shall develop, adopt and implement a plan to sell itself or merge itself into an insured depository institution that is not controlled by Capitol Bancorp Limited, or otherwise recapitalize the bank so that the bank is no longer controlled by Capitol Bancorp Limited.”

The bank also must furnish written progress reports signed by the board of directors detailing its compliance with the order.

Read more: http://www.macon.com/2010/03/30/1076924/two-middle-georgia-banks-under.html#ixzz0jjotcEXl

Posted via email from Jim Nichols for GA State House