Local bank group reacts to plan for troubled assets

By Charles Edwards

Atlanta, GA – Georgia banks are figuring out if they'll benefit from the plan for troubled assets announced today by the US Treasury.

So far, they're optimistic.

If federally guaranteed loans convince private investors to buy troubled assets from banks, it could be good news for Metro Atlanta banks.

Georgia Bankers Association spokesperson David Oliver says many of the local banks issued construction loan to developers.

OLIVER: “And so as the economy has gotten really tough and demand for those houses and lots that they've been developing has gone away in the current environment. Those developers and builders are having trouble paying their loans back.”

While the plan is primarily designed to rid large banks of their mortgage backed securities, the Treasury is inviting almost all banks to pool their bad loans together for a troubled asset auction.

That has metro Atlanta banks interested in signing up for the program.