Macon Bank is on the FDIC’s watch list. Like many banks, it was encouraged by federal programs to get in the business of granting mortgages to, for all intents and purposes, unqualified buyers. That was back in the heyday when prevailing mythology taught economies could only expand, so if you build it, they will come.
The losses eroded the bank’s capital ratio to a level the FDIC wasn’t comfortable with.
