On Wednesday, the state Senate Banking Committee gave a “do pass recommendation” and House Bill 192 will now head to the floor for a full vote. In a state with a rather checkered past with the relationship between the law and banking, the bill would, among other things, change the liability of bank directors and officers for monetary damages occurring under their watch.
The bill immediately calls to mind the experience of former Georgia senator Jack Murphy, who got into hot water as the director of a failed Alpharetta-based bank that was ultimately sued by the FDIC for breach of fiduciary duty. And that came amid scores of Georgia bank failures. Rep. Beth Beskin (R- 54 Atlanta) has said the bill was not prompted by that experience. Interestingly, the Georgia Banking Committee chair, Rep. Greg Morris (R- 156 Vidalia), also got into some trouble with the feds and was fined $5,000 by the FDIC for an unspecified rules violation. Beskin’s bill in the house did not come before the banking committee, instead being heard by the Judiciary.
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