Congressional panel meets in Ga. on bank failures - | Chattanooga News, Weather & Sports

Congressional panel meets in Ga. on bank failures

Associated Press

NEWNAN, Ga. (AP) - A congressional panel is meeting to investigate the rash of bank failures that have plagued Georgia.

The House Subcommittee on Financial Institutions and Consumer Credit met Tuesday to analyze the banking crisis in Georgia, where 67 banks have failed since 2008. That's more bank failures than any other state.

Lawmakers called Georgia the epicenter of the banking crisis. But they also questioned whether all the banks should have been shut down.

U.S. Rep. Lynn Westmoreland wondered whether strict regulations created more failures.

He said: "Banks that are too big to fail survived. Banks too small to save have been cut lose." He said lawmakers should find a middle ground between the two.

Two panels are set to testify - a group of regulators and another of banking executives.

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