Need A Bank Bailout? Too Big To Fail? … Call 1-800-Feds-4-Us Small Community Bank? … Call 1-800-Pay-Atty
Dr. Karin Pafford Roland, Dr. William K. Buchanan

Abstract
The Great Recession’s impact was disproportionally distributed in the commercial banking industry. By December 2008, various agencies of the federal government had committed to nearly $7 trillion in assistance to the financial service industry. However, one-half of the $250 billion capital bailout went to the 9 ‘too big to fail’ commercial banks. Meanwhile more than 400 insured banks failed, 85 percent of which were community banks. During the crisis, the FDIC ignored systemic risk in community bank loan participations until a small community bank in south Georgia actually sued the FDIC. The lawsuit devised by an Atlanta based attorney became the model for community banks struggling to avoid FDIC receivership. This paper describes the systemic risk and details the struggles and triumphs of this small community bank. (Finance, Banking, Intermediation, FDIC, Bank Failures)

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