Data Shows Bank Crisis Unprecedented

The banking crisis in Georgia appears to be headed for a historic level. Loan problems are rivaling the peak of the late 1980’s Savings and Loan Crisis. The percentage of delinquent loans at Atlanta banks is actually worse than in the S and L downturn. Twelve percent of loan portfolios in Atlanta have problems. Statewide it’s 8.69 percent. That’s according to the data compiled by FIG Partners LLP. The data is setting a new standard for industry woes in the region, leading to what some are calling the worst bank market in the state’s history.

(Atlanta Business Chronicle)

Office Depot slashes stores

Office Depot is closing more than 100 stores nationwide, including a northwest Georgia store. 33 distribution centers will also close. It's unclear how many jobs at the Cartersville store will be affected. Office Depot has 53 stores in the state.

(Atlanta Business Chronicle)

Local bank goes under

Another Georgia bank has gone under. Federal bank regulators seized the Community Bank of Loganville. A Virginia bank is assuming the bank's assets and the former Community Bank of Loganville locations are being renamed Bank of Essex. This is the 3rd Georgia bank to fold in four months, the 20th in the nation to fail this year.

(Atlanta Business Chronicle)

Survey: Atlantans most stressed in nation

Metro Atlantans are the most stressed-out people in the nation, according to the American Psychological Association. The Atlanta Business Chronicle reports the APA found 36% of people who live in and around Atlanta ranked their stress 8, 9 or 10 on a 10-point scale. Nationally, only 30% ranked their stress that high. Most metro Atlantans cite money as the leading cause of stress, with work, the economy, and housing following in that order.

New airline between Atlanta, Macon, Athens

A new airline starts up in Georgia and the initial flight fare will be $9. The Atlanta Business Chronicle reports GeorgiaSkies will fly six flights a day from Atlanta to Macon and Athens. The usual price will be $49.

Georgia's tax burden heavy

Georgia carries a heavier tax burden than the average state, according to the Tax Foundation. The Atlanta Business Chronicle reports the Foundation says Georgia has the 16th highest taxes in the nation. People here pay 9.9% of income. The national average is 9.7%. The Tax Foundation says New Jersey pays the most taxes, at 11.8%.

Georgia Power submits nuke request

Today Georgia Power asked for state approval on two new nuclear reactors. The Atlanta Business Chronicle reports that Georgia Power's parent company, Southern Company, submitted a request to the Public Service Commission today. The reactors would go up at Plant Vogtle near Waynesboro, south of Augusta. Georgia Power also submitted a proposal to convert a coal-fired plant near Albany to burn renewable biomass wood.

High gas prices hit Georgians especially hard

Georgians are hit third-hardest in the nation by high gas prices. That's because residents spend more than 7% of their income on fuel, according to the Natural Resources Defense Council. The Atlanta Business Chronicle reports that averages out to $2,400 dollars per person last year. Mississippi topped the list, with people there spending more than 8% of their income on fuel.

Atlanta airport ranks most efficient

Georgia’s main airport is the world’s most efficient. The Air Transport Research Society gives Hartsfield-Jackson Atlanta International Airport the honor for the fifth time in six years, according to the Atlanta Business Chronicle. The ranking comes from a study of 142 airports worldwide.

Kia supplier opening Columbus factory

A Korean automotive parts firm is set to open it's first U.S. plant in Columbus, by year's end.

Illustration of Dongnam Tech auto carpet products. (Courtesy)

DongNam Tech, will open a 100,000 sq.-ft., 26-acre factory in Jan., 2009 that will make carpet and floor mats for several car makers including General Motors, Hyundai, Kia, and Nissan.

The $29 million plant, to be built in the Muscogee Technology Park will create 350 jobs, according to a Governor's Office statement.

The plant is one of many suppliers that have opened facilities in western Georgia, to service the Kia Motors assembly line, presently under construction near West Point. The $1.2 billion plant is scheduled to open in early to mid 2009.

Construction cranes at Kia plant lifting girders into place, June, 2008. (Dave Bender)

Click here for more GPB News coverage of the Kia factory, and its local and statewide impact.

Will Delta pull out of using Freedom Air?

In Georgia business news … Phoenix-based Mesa Air Lines has won small first battle against Delta Air Lines. The Atlanta Business Chronicle reports a judge has granted a preliminary injunction against Delta enjoining the carrier from canceling its contract with Mesa. Mesa says it risks bankruptcy and cutting 700 jobs if Delta pulls out of using its Freedom Air as a regional carrier in the southwest.

Tour de Georgia drew nearly 1,200 visitors

More money came in from this year's Tour de Georgia than last year, even though fewer people attended.The Atlanta Business Chronicle reports the 600-mile cycling race brought in $37 million dollars.That's 40% more than last year's race.One survey says the Tour drew nearly 1,200 visitors who spent an average of $380 a day.

UPS could team with DHL

Atlanta-based United Parcel Service is set to team up with rival DHL. The Atlanta Business Chronicle reports UPS could gain $1 billion dollars in revenue from the deal. Under the agreement, UPS would transport but not pick up or deliver DHL packages in North America.

International terminal plans unveiled

Today the world got its first look at plans for a new International terminal at Georgia's main airport. The Atlanta Business Chronicle reports the 1.2 million square foot terminal at Hartsfield-Jackson Atlanta International Airport would have 12 new international gates and 11-hundred new parking spaces. Passengers also won't have to re-check baggage when they arrive from abroad and continue on a domestic flight. It's set to open in 2011.

New scam in Georgia

The Internal Revenue Service says there’s a new scam in Georgia involving a fake tax refund. The Atlanta Business Chronicle reports the IRS says victims pay a fee to have someone file for a Social Security tax refund on their behalf. But the IRS says a Social Security tax refund is rare. The scammer pockets the fee and the victim never gets their promised refund. The IRS says taxpayers who did receive a refund must return it because it was a false claim.

Teamsters approve UPS contract

The Teamsters Union has approved a new contract with Atlanta-based United Parcel service. The Atlanta Business Chronicle reports the ratified contract covers 240,000 UPS employees. It covers wage increases, health-care benefits and pension plans. This agreement extends the contract coverage to July 2013.

NFL prefers Georgia hospital

A Georgia hospital is among 15 chosen by the National Football League to perform surgery on retired players. The Atlanta Business Chronicle reports St. Joseph’s Hospital of Atlanta is on the list. The NFL and the players’ union created the list of preferred hospitals for joint replacement surgery.

Georgia Power closer to rate hikes

Georgia Power has reached a deal that could bump up customers’ monthly bills by nearly six dollars. The Atlanta Business Chronicle reports state and private entities have approved more than $300 million in price hikes. Georgia Power says it needs the boost to pay for compliance with new environmental rules. The Georgia Public Service Commission has yet to approve the increase. The Commission is set to vote on the settlement December.

Tour de Georgia alive and well

Georgia’s annual cycling race is set to return next year, and bring tourism dollars with it. The Atlanta Business Chronicle reports the Tour de Georgia will return next April for its 6th season. Lieutenant Governor Casey Cagle will chair its board. The Tour’s future was in jeopardy after losing major sponsorship. Its leaders say they’re trying to revitalize the race by generating publicity throughout the year as well as forging stronger partnerships with businesses. Over the past five years, nearly 3-million people have come to watch the tour, which has generated $148-million dollars for local communities.

UPS to hire 60,000

Atlanta-based United Parcel Service is hiring 60,000 seasonal workers for the upcoming holiday rush. The Atlanta Business Chronicle reports the package delivery company delivers 22 million packages around the world between Thanksgiving and Christmas. On average, one in four season employees earns full-time employment.