Georgia Department of Banking and Finance Takes Possession of Georgian Bank, Atlanta, Georgia

The Georgia Department of Banking and Finance (“Department”) took possession of Georgian Bank, Atlanta, Georgia on September 25, 2009. The Superior Court of Cobb County issued an Order appointing the Federal Deposit Insurance Corporation (“FDIC”) as Receiver of the Bank effective upon the Department taking possession of Georgian Bank.

The Department took possession of Georgian Bank pursuant to the Official Code of Georgia, Section 7-1-150(a) which authorizes the Department in its discretion to take possession of the business and property of any state chartered financial institution whenever such financial institution is either insolvent or operating in an unsafe or unsound condition to transact its business, is operating in violation of any court order, statute, rule or regulation, or requests the Department to take possession of its business and property.

Through an agreement with the FDIC, Georgian Bank will be acquired by First Citizens Bank and Trust Company, Inc. (“First Citizens”), Columbia, South Carolina.

All deposit accounts of Georgian Bank have been transferred to First Citizens and will be available immediately. On Monday, September 28, 2009, depositors will be able to access their accounts at the former main office and branch locations of Georgian Bank. Customers of both banks should continue to use their existing branches until First Citizens can fully integrate the deposit records of Georgian Bank. Additionally, the former depositors of Georgian Bank can continue to access their accounts through automated teller machine transactions, checks and debit transactions.

All deposits will be transferred to First Citizens and, therefore, it is not anticipated that there will be any loss exposure to former Georgian Bank depositors that have deposits exceeding the FDIC Deposit Insurance amounts.

The Department’s Commissioner, Robert M. Braswell, reminds depositors that deposits of all Georgia banks are insured by the FDIC up to $250,000. Special rules are in place for accounts held in trust status and joint accounts that may further expand deposit insurance coverage. You can find additional information on FDIC Deposit Insurance at www.fdic.gov.

The FDIC has established a website and a toll-free phone number to answer questions from depositors, creditors and other interested parties regarding the receivership of Georgian Bank. Please refer to the FDIC’s website for further information regarding the details of the purchase and assumption transaction. The website is www.fdic.gov and the toll-free phone number is 1-800-405-1498. The phone number is operational this evening until 9 p.m. Eastern Standard Time, on Saturday from 9 a.m. until 6 p.m. on Sunday from noon to 6 p.m. and thereafter from 8 a.m. to 8 p.m.

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Georgia Department of Banking and Finance's Order to Cease and Desist Issued to Atlanta Home Modification Services, LLC d/b/a Atlanta Home Mods Final

On September 21, 2009, an Order to Cease and Desist issued by the Georgia Department of Banking and Finance (“Department”) to Atlanta Home Modification Services, LLC d/b/a Atlanta Home Mods located at 1588 Atkinson Road, Suite 106, Lawrenceville, Georgia, 30043 became final.

This Order to Cease and Desist was issued by the Department after it obtained evidence that Atlanta Home Modification Services, LLC d/b/a Atlanta Home Mods engaged in residential mortgage brokering activities without a license or under an applicable exemption in violation of O.C.G.A. § 7-1-1002.

Pursuant to Georgia law, it is prohibited for any person knowingly to purchase, sell, or transfer a mortgage loan or loan application from or to an entity that is not licensed or exempt from licensing or registration provisions to engage in mortgage broker or lender activities.

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'The State of College Savings' Survey Finds Parent Confidence Crashing As They Rely on Loans, Shift Debt Burden to Their Children

'The State of College Savings' Survey Finds Parent Confidence Crashing As They Rely on Loans, Shift Debt Burden to Their Children - 529 Investors Still Most Successful Savers

/PRNewswire/ -- Parents' confidence in their ability to save for college plummeted over the last year, as they socked away less and relied more on the prospect of student loans and grants to fund their children's college education, according to the 2009 "The State of College Savings" survey of nearly 800 parents across regions and income levels conducted by the College Savings Foundation (CSF).

Forty-four percent of parents are "not very confident" that they will reach their college savings goals, up from 31 percent in 2008; while the number of parents who are "very confident" has plunged to 12 percent from 20 percent last year.

Reduced savings may be contributing to this malaise: one-third of parents said that they are saving less for college this year than last, with 43 percent of those prioritizing current living expenses and 29 percent suffering a cut in income. Of the total parents surveyed, 41 percent have saved nothing at all, and 28 percent have saved less than $5,000 per child.

The number of parents expecting student loans to pay for college soared to 47 percent from 37 percent one year ago. Those expecting financial aid spiked up to 73 percent from 62 percent last year. And, more parents are shifting the debt burden to their children: 68 percent versus 63 percent last year, with 46 percent expecting their kids to be responsible for up to one-third of their college debt - up from 34 percent in 2008.

Despite this behavior, parents haven't adjusted or changed their hopes and aspirations: 76 percent of parents don't expect to have to narrow their children's college choices; and 76 percent would be very disappointed if their child could not afford to go to college (at least 8 on a scale of 1-10).

Pointing to a clear strategy for bridging this gap between intention and action was the finding that parents owning 529 college savings plans were the most successful group in saving for college: 61 percent of parents with 529s have saved more than $5,000 per child, versus 22 percent of those without one.

"This survey is a call to action for parents to save early and often - even if they can only start with small amounts," said Kevin McMullen, Chairman of the College Savings Foundation, a leading nonprofit encouraging American families to save for their children's college education. "The economic reality is that parents cannot count on college loans and grants being available or affordable when their children reach college age. Any shortfall in college funding will cascade as debt burden onto their children's futures."

Parents realize that their dependence on debt will have a long term impact: 65 percent expect that it will take at least five years for them or their children to pay it off after graduation.

Those who can't get loans anticipate getting Federal or State grants: 28 percent of parents are relying on these as their primary source of college funds, compared to 20 percent last year. Seventeen percent expect financial aid to cover over two-thirds of all college costs - up from only ten percent last year. Thirty-four percent expect it to cover up to one third of college costs.

"Financial aid covers only a portion of college costs and families need to look for ways to close that gap," McMullen said. According to the College Board, in 2007-2008 undergraduate students received on average $8,896 in financial aid, including $4,656 in grant aid and $3,650 in federal loans. This represents a fraction of the average $14,333 cost of today's four-year public college, or $34,132 for a private college or university.

As in last year's survey, 22 percent of parents expect help from grandparents; and 72 percent expect no help in paying for college at all. Twenty-seven percent would ask friends and family to "trade toys for tuition," or contribute to college rather than in material gifts.

Three-quarters (74 percent) of parents do not even know how much they need to save, up from 70 percent last year.

"In the face of an economic climate that is clearly putting families under pressure, we as an industry including financial advisors and policy makers should redouble our efforts to raise awareness on how to save to stave off debt," McMullen said.

The survey showed that many parents are saving successfully through vehicles like 529 college savings plans and strategies like automatic savings programs, enabling systematic and regular contributions of funds for college savings.

Parents owning 529s were far more successful in saving than those using other investments: 34% of parents who have saved more than $5,000 per child invest in 529s as their primary savings vehicle, more than double that of the next most popular ones: 14 percent of parents who have saved more than $5,000 per child are primarily in mutual funds, and 14 percent are in cash.

The percentage of parents in 529 plans held steady from the 2008 report. Nearly one in four, or 23 percent, is invested in a 529 college savings plan, and one in five (19 percent) says that 529s are the number one college savings vehicle, exceeded only by cash at 25 percent. At the same time, in a question that permitted more than one answer, the 2009 survey found that those parents who are saving are also squirreling money away in general (57 percent) and emergency (31 percent) funds.

"While it is understandable that parents are keeping cash at hand in these uncertain economic times, families are continuing to recognize the benefits of 529 college savings plans in reducing taxes and reaching their college savings goals," said McMullen. "Parents have the option to keep 529 funds in cash as well."

The 2009 State of College Savings survey also offered these glimmers of good news:

-- Although 46 percent of parents said that they would like to save more
in general but can't because of this year's economic reality, one in
four parents - 24 percent - said that they were actually saving more
than before.
-- Parents seemed to understand that a little is better than nothing:
those who tried to save at least something edged up from last year:
28 percent have saved less than $5,000 per child - but that is up from
22 percent in 2008. Around 30 percent of those are invested in a 529.
-- Parenthood prompts saving and gives parents time to build savings
momentum: 25 percent of parents started saving when their child was
born, and 20 percent when the child was 1-5 years old. Those parents
with children 11-13 years old, and those with children 14-18 years
old, had saved more than those in other age groups. Approximately 42
percent of each of those groups has saved more than $5,000 per child,
versus 26 percent of those with children in younger and older
categories.
-- While 20% of parents used an automatic savings strategy, those that
did were successful savers. 63% of them have saved more than $5,000
per child. 35% have been able to save between $100-$300 per month.
57% of those utilizing an automatic savings strategy own a 529.

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IRS Voluntary Disclosure Program for Swiss Bank Accounts to End Sept. 23

The Internal Revenue Service is set to end Sept. 23 its voluntary disclosure program that allows U.S. taxpayers to avoid criminal prosecution if they pay taxes, interest and penalties for the past six years, in addition to a penalty equal to 20 percent of the highest account balance. Although the cost of voluntary disclosure is significant, it is much less than the costs of being pursued, either civilly or criminally, by the U.S. tax authorities.

The voluntary disclosure program was put in place after it was revealed that thousands of wealthy Americans were illegally hiding money in Swiss bank accounts. The activity came to light when a former employee of the Lichtenstein bank, LGT, provided data to the German government in 2008 on foreign accountholders using LGT to evade taxes. Later that summer a former employee of the Swiss bank, UBS, also admitted that UBS was assisting many wealthy Americans in evading taxes by hiding money offshore. Names were released and again the U.S. government was in hot pursuit of tax evaders. The UBS scandal gave rise to a lawsuit where UBS admitted to assisting in tax evasion, paid the U.S. government a $780 million fine, and ultimately agreed to turn over details on U.S. citizens with Swiss accounts at UBS.

To date, the IRS has witnessed an overwhelming response to its voluntary disclosure program. Stephen Ziobrowski, a tax partner in the Boston office of Day Pitney LLP, says: "The voluntary disclosure program has turned into a convenient revenue generator for the IRS. The IRS is able to collect significant past due taxes, interest and penalties without utilizing the resources that would be necessary to pursue these taxpayers on an individual basis." Mr. Ziobrowski added that, "Many clients come to us, unable to sleep at night, due to their fear of being caught by the IRS. Although the costs of voluntary disclosure are significant, clients often consider it a good investment to regain their peace of mind and ensure that their children or grandchildren do not someday inherit their tax problems."

Once the voluntary program ends there is no indication as to whether the IRS will extend the program beyond the current deadline. Daniel L. Gottfried, a tax attorney in the Hartford office of Day Pitney LLP, says, "The only way to resolve these tax compliance problems with a high degree of certainty is to enroll in the voluntary disclosure program, and taxpayers have a limited time to get into the program before the doors close. Affected taxpayers must consult their attorneys immediately in order to meet the Sept. 23 deadline."

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Financial Peace University Classes Offered

Fayetteville First United Methodist Church is offering Financial Peace University Classes for the local community starting in September. Financial Peace University is a life-changing program that teaches one how to make the right decisions with their money. You'll be empowered with the practical skills and confidence needed to achieve your financial goals and experience true financial peace!

This is a 13 week course, commencing on Sunday, 13 September. Classes will meet from 4:30 PM to 6:30 PM, at Fayetteville First UMC at 175 Lanier Avenue in Fayetteville. The normal cost for the class is $150. The Church group rate is $110 for the 13 week course.

To sign up or obtain more information, please contact:

Laura Cox
Director of Adult Discipleship
770-461-4313, ext. 16
Fayetteville First United Methodist Church
lcox@fayettevillefirst.com
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Energy Industry Icon Re-Affirms Position that U.S. Equity Market Valuations Overdone: U.S. Energy Industry at Major Risk

/PRNewswire/ -- Karl W. Miller, a senior energy executive and institutional investor, today issued the following statement through his advisors, Re-Affirmed his position that U.S. Equity Market Valuations are Overdone and the U.S. Energy Industry is at major risk.

Mr. Miller has made it clear in prior research that there will be no meaningful economic recovery to sustain any equity market recovery until the defunct real estate holdings in the residential and commercial marketplace are properly vetted, written down to net realizable value, and sold off of the banks, hedge funds and insurance company books. This will mean bankrupting hundreds of institutions, which are already technically insolvent.

A recovery based upon negative net worth, and the U.S. Government underwriting the retail consumer and institutional marketplace on all fronts, including a ludicrous renewable energy plan and unrealistic and un-achievable health care proposal will not happen.

Retail investors should not be investing in the equity and debt markets at the current time, while the major banks, hedge funds, and private equity funds are insolvent on a majority of their asset based holdings. They require a rising equity market to float their portfolios and pull the retail investor back into the market to fill the gap. Unfortunately, the retail and high net worth investor is essentially insolvent as an investor class and the old model does will not work.

We need quick and brutal cleansing of the U.S. Financial system, and renewing Ben Bernake's term as Fed Chairman means nothing to solving the market problems and is window dressing. Retails investors should not be lured into purchasing equity or fixed income instruments until we essentially "bankrupt the US banking system" and hit the reboot button, which will have the effect of flushing out the illiquid hedge and private equity funds who are hanging on by a thread.

All of this is important, because a majority of the financial institutions can't purchase or operate critical energy infrastructure assets so desperately needed. This is what seasoned management does alongside of distressed capital investors. Unfortunately, these experts can't begin to work until the system is flushed.

The U.S. Renewable energy industry is on its rear end, and one need only ask T. Boone Pickens, who spent millions on marketing a renewable energy plan only to fail dramatically. If anyone wants to purchase distressed wind turbines, Mr. Pickens has hundreds of turbines scheduled for delivery with nowhere to go.

We have insufficient infrastructure in the U.S. to include Transmission lines, natural gas and oil pipelines and the "pork" energy plan that has come out of Washington does nothing to solve that problem.

So, where do we stand, and what should investors do? Sell the financial equity investments and get to the sidelines quickly, as the carnage is coming and is not for the faint of heart. It is best left to true distressed asset buyers and operators who know how to clean up what has become the largest financial and asset disaster in U.S. history.

Again Mr. Miller reiterates that China is irrelevant at the current time, given the fact that the U.S. is financially broke. Chasing China, Asia or Europe in the equity market rally has no relevance on the U.S. problems.

Yes, Oil is dollar based, but has no linkage to natural gas in the U.S. as it does in Europe and Asia. Essentially, Oil and Natural Gas are decoupled in the U.S. and investors should not chase a financially driven oil price when it has nothing to do with the fundamentals on the ground in the United States. Natural Gas is cheap and getting cheaper, as there is no demand. Thus, the pipeline and natural gas producers are suffering and overvalued as well. Sell them if you own them.

Mr. Miller retains a sell recommendation on renewable energy companies. We will see many of these names, which are highly levered fail and/or be purchased at distressed prices when the bust comes, and it is sure to come.

Mr. Miller re-affirms that investors should not confuse Warren Buffett's statements regarding deployment of capital versus sitting on cash with intelligent timing of investments, especially in the energy sector.

Be patient, let the assets get sorted out then make decisions about deploying capital. There is plenty of value and risk to go around.

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Estate Planners Await 'Big Bang' in 2010 From Tax and Retirement Law Changes

/PRNewswire/ -- People who are nearing or planning for retirement will be hearing from their advisors this fall about changes in federal law that could have a huge impact on their financial plans.

From Roth IRA conversions to the estate tax, there is a lot on the horizon to consider for individuals who want to have enough money for retirement, ensure the continuation of a family business, or leave an inheritance to a charity or their heirs.

"What happens in the next few months could cause some of the biggest changes we've seen in the trusts and estates field," said Roy Adams, professor emeritus of estate planning and taxation at Northwestern University School of Law where he taught both subjects for 25 years.

Adams is going to explain recent and upcoming changes and offer suggestions for dealing with them September 14 in a presentation at the Minneapolis Convention Center. Securian Trust Company and The Salvation Army are co-sponsoring the live event in Minneapolis for estate planning professionals entitled, "Coping with Change - Like It or Not." This is the 17th Annual Estate and Charitable Gift Planning Institute in the Twin Cities and usually draws 700 to 800 tax, estate, and wealth management professionals.

At the heart of the pending changes is the estate tax. In 2010 it is scheduled to be repealed for one year. In 2011, it will revert to its 2000 version. Though many believe that is unlikely to happen, there will be changes to estate and gift tax rules and Americans need to prepare for that. The changes could have an impact on family-owned businesses and heirs and also could affect other aspects of financial planning including charitable contributions and gift taxes.

To add even more drama, the income limitation on converting regular IRAs, 401(k) accounts, and 403(b) accounts to Roth IRAs will be removed in 2010, opening it up to wealthy individuals. The expectation is that many will want to capitalize on this opportunity.

Adams' co-presenter, Christopher Hoyt, is a professor at the University of Missouri - Kansas City School of Law where he teaches courses in federal income taxation and business operations. Hoyt also is the co-chairman of the American Bar Association committee on charitable organizations.

"Coping With Change - Like It or Not," will be broadcast live to several locations throughout North Dakota and Minnesota, as well as nationally. The presentation in Minneapolis is free and open to the public: Go to http://www.thesalarmy.org/cont/royadams.htm to register.

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