Former Rep. Charles Taylor blamed increased federal regulations and a bad economy for Blue Ridge Savings Bank closing last Friday.
But regulators said Blue Ridge Savings Bank had failed to keep enough capital last year after being cited in late 2008 for poor management and a large number of bad loans. ...
“Unfortunately, as employment in the region hit near-Depression levels, and many small businesses had to close their doors, it has been impossible for the bank to maintain the high rate of capital and the reserve demanded this year,” Taylor said. ...
[FDIC spokesman Eric] Raines said Blue Ridge had concentrated in development and construction lending, which borrowers were unable to repay in bad economic times.Read the full article