Lockhart Says Atlanta Fed Conducting Review of Bank Supervision
October 8, 2009
By MoneyAisle
Bloomberg reports that following a large number of bank failures in Georgia this year, the Federal Reserve Bank of Atlanta is in the midst of a review process to examinr its supervision methods.
In a recent speech, Atlanta Fed Bank president Dennis Lockhart stated, “We are looking vey carefully at what we can do better going forward. We are doing a postmortem, so to speak, to improve how we carry out our responsibilities in supervision and regulation going forward.”
Banks in Georgia and Florida engaged in “excessive real-estate lending”, a practice that the Atlanta Fed failed to supervise and regulate appropriately. According to Lockhart, the Fed needs to look more at the banking industry as a whole instead of merely on an individual basis.