Freedom Bank of Georgia closed by regulators

[UpInArms]

Source: FDIC

On March 6, 2009, Freedom Bank of Georgia, Commerce, GA was closed by the Georgia Department of Banking and Finance and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution. The FDIC has compiled the following information which should answer many of your questions.

II. Press Release

The FDIC has issued a press release (PR-037-2009) about the institution's closure. If you represent a media outlet and would like information about the closure, please contact LaJuan Williams-Dickerson at 202-898-3876.

III. Acquiring Financial Institution

All deposit accounts have been transferred to Northeast Georgia Bank, Lavonia, GA ("assuming institution") and will be available immediately. On Monday, March 9, 2009, the former Freedom Bank of Georgia locations will reopen as branches of Northeast Georgia Bank.

Your transferred deposits will be separately insured from any accounts you may already have at Northeast Georgia Bank for six months after the failure of Freedom Bank of Georgia. Checks that were drawn on Freedom Bank of Georgia that did not clear before the institution closed will be honored as long as there are sufficient funds in the account. You may speak to an FDIC representative regarding deposit insurance by calling: 1-866-782-1897 or visit EDIE the FDIC's Electronic Deposit Insurance Estimator.

Read more: http://www.fdic.gov/bank/individual/failed/freedomga.html

[Critters2]

1. Happy Friday! nt

[OmahaBlueDog]

2. This looks like a job for Marmar

...and his weekly Friday Bank Failure Update

[depakid]

3. "Freedom" Bank? in Comerce Georgia?

Bizarre.

[elocs]

4. I have heard that when a bank is "closed" it is in reality being temporarily "nationalized".

Many S&Ls were nationalized in the 1980s.

[mackerel]

5. This explains why the FDIC asked for a lot of money today.

My guess is there are more to be taken over in short order. One of the big 9 will end up going down in the next 6 months.

[dixiegrrrrl]

6. 17 banks failed so far in 2009...and this is March.

In 2008........ 25 banks closed over a 12 month period, 15 of those in the last quarter of 08.

In 2007..... 3 banks failed. THREE in 12 months.

link:

http://www.fdic.gov/bank/individual/failed/banklist.html

Of the entire failed bank list kept by the feds since 2000, 50% of those failures have been 2008 and the first quarter of 2009.

[FarCenter]

7. Construction loans -- there's going to be a lot of this...

Freedom Bank has four branches in Commerce, Winder, Homer and Jefferson. It opened in early 2004 in Commerce.

“Freedom Bank of Georgia has been affected by the downturn in the economy, particularly in the real estate sector of the market,” said Vince Cater, president and CEO of the bank. “Jackson, Banks and Barrow counties have been among the fastest growing and most dynamic areas of the country for the past several years, and Freedom Bank of Georgia, in serving the local economy, participated actively in construction and related loans.”

From http://www.commercenewstoday.com/archives/1540-Freedom-Bank-under-order-from-state.html