Lance Quits Georgia Bank Post Amid Battle With U.S. Agency

Former federal budget director Bert Lance, reelected as chairman of Calhoun First National Bank last week despite a legal battle with federal regulators, has announced he is resigning the post.

Lance told the bank’s shareholders in a letter dated Monday that he believes “it is in your best interest that I no longer serve. Therefore, I am taking early retirement and will no longer serve as a director or officer of the bank.”

Lance began work at the northwest Georgia bank as a teller in 1951 and is now its largest stockholder. He has been involved in legal battles with the Office of the Comptroller of the Currency since last summer, when the OCC filed a civil suit in Washington accusing Lance and the bank of violating securities laws. Lance earlier had sued the OCC for violation of his privacy. Both suits are pending.

In his letter, Lance said last week’s bank election, in which he and his slate of directors were overwhelmingly elected by shareholders, gave Calhoun First “a board that is 100% committed to the growth and progress of Calhoun First and the community. Having such a board now gives me a freedom I have not felt until this time.”

Lance, who was federal budget director in the administration of fellow Georgian Jimmy Carter, also is former chairman of the Georgia Democratic Party. He resigned the party chairmanship last summer after the bank examiner’s report criticizing his banking practices was made public.