Two North Georgia banks that operate divisions in Jackson and Barrow counties are reportedly under “cease and desist orders” from the Federal Deposit and Insurance Corp. (FDIC).
The FDIC released a 29-page “cease and desist” order last Friday against Community Bank and Trust that was dated May 11. CB&T is headquartered in Cornelia and operates multiple divisions in Northeast Georgia, including Barrow and Jackson counties.
On Monday, Habersham Bancorp, based in Clarkesville, announced it had signed a “cease and desist” order with the FDIC, according to Reuters, but no details were available. Habersham Bank operates a branch in Braselton, among other North Georgia locations.
The CB&T order released last week slammed the bank’s board of directors and management, saying “the Bank had engaged in unsafe or unsound banking practices and had committed violations of law and/or regulations.”
Some sources from CB&T said that the problems are a result of lax loan practices primarily in Barrow County where the bank has offices in Winder, Bethlehem and Auburn.
But Barrow division president Randy Sims said the issues the bank faces are larger than just Barrow County.
For the full story, see the July 1 issue of The Jackson Herald.
FDIC issues order on CB&T; Habersham Bank also reportedly under order
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