Community Bank & Trust, taken over by state and federal bank regulators Friday night and sold to Orangeburg, S.C.-based SCBT, N.A. on Saturday, was a victim of both fraud and bad loans, a former official insists.
“There’s some people in our company going to jail,” said Elton Collins, who until Friday evening at 5 p.m. was president of Jackson County operations. “I know damn well they’re going to jail.”
Collins, however, called the takeover by SCBT “the best switch-over I’ve ever seen of that type,” and said it “really worked out good” for Community Bank & Trust employees.
“SCBT has been very good to everybody,” said Collins. “They are just as nice as they can be at this point. There was not all of that embarrassment Friday night that you typically see.”
Fraud alleged in CB&T failure
That could be because SCBT didn’t know it was getting the bank until Thursday, according to Collins.
“BB&T had the bid. They were going to get the bank,” he said. “Then, Thursday afternoon, because of all the fraud involved, they got cold feet. Thursday afternoon they (FDIC) called SCBT and gave it to them.”
The FDIC and the State Banking Office took over the bank on Friday night at closing time. They put it into receivership and bankruptcy on Saturday, which relieves the new owners of the obligations of contracts and contingencies, then sold the assets to and turned over the deposits to SCBT with a loss share agreement.
“Basically it was fraud and bad loans that got the bank,” Collins said. As for the fraud, he said the FBI is handling that at the Cornelia office.
For the full story, see the Feb. 3 issue of The Jackson Herald.
“BB&T had the bid. They were going to get the bank,” he said. “Then, Thursday afternoon, because of all the fraud involved, they got cold feet. Thursday afternoon they (FDIC) called SCBT and gave it to them.”
The FDIC and the State Banking Office took over the bank on Friday night at closing time. They put it into receivership and bankruptcy on Saturday, which relieves the new owners of the obligations of contracts and contingencies, then sold the assets to and turned over the deposits to SCBT with a loss share agreement.
“Basically it was fraud and bad loans that got the bank,” Collins said. As for the fraud, he said the FBI is handling that at the Cornelia office.
For the full story, see the Feb. 3 issue of The Jackson Herald.
Trackbacks
Trackback specific URI for this entry
No Trackbacks
Comments
Display comments as
(Linear | Threaded)
#1
Tony Beatty
on
02/03/10 at 06:52 PM
[Reply]
I really hate to hear the news about CBT. They are the only Bank in Jackson that puts Customer Convenience first. Just look at the branches they have established for their customers. It's a shame that some of their Officers made such unwise loans.
#2
not.so.quick.af.pops
on
02/05/10 at 08:59 PM
[Reply]
The bank failed because of the depressed real estate economy and overall economy. CBT had a concentration in this industry as most banks in Northeast Georgia have found themselves in this caustic position. If this was a fraud situation, the bank's bonding company would have been involved much earlier to preserve the bank's capital prior to the FDIC closing the bank. Collins should have been more concerned with his 5th amendment rights, rather than his opinions or views in this matter since he was an executive officer of the company and a 30 year veteran of the company. Whether he is sure or pretending to know of these fraudulent activities and particpants in this matter, he should share his knowledge with the FDIC and other investigative participants.
#2.1
Commercial Borrower
on
02/07/10 at 09:53 PM
[Reply]
Just wanted to state for the record that I borrowed money as a silent partner for homebuilding from CB&T in Habersham and they did a very poor job in follow up and approved unearned draws to the con man who called himself a builder. Between the bank and the builder they have about ruined me financially. If it wasn't fraud it was very close to it.
#3
Just Wondering
on
02/09/10 at 05:31 AM
[Reply]
It's weird to think that BB&T was thinking about taking on CB&T after they just took over Colonial Bank and Trust only weeks prior. Seeing as how any educated person would know that buying and intergrating another bank is such a headache, costly and time consuming that no one in their right mind would try it with two. Sounds like Collins is trying to save face or make himself feel better that no bigger bank took them on. Why would BB&T want them when they can have a bank thats already established in two other states?
#4
End of an era
on
02/09/10 at 09:36 AM
[Reply]
That's a shame - my first checking account was opened there in 1971. I've remembered he number for Time and Temp (335 5126) for over nearly 40 years... Commerce of old seems gone.