Federal bank regulators repeatedly warned the now-collapsed New Frontier Bank it was taking financial risks it could not cover and lacked the systems to ensure loan officers made good decisions, according to an investigation by a federal inspector general.
The "material loss review" for the Federal Deposit Insurance Corporation concludes that bank officials failed to implement proper risk-management strategies despite multiple warnings starting in 2004. The report also says regulators should have moved more aggressively to protect the bank from itself.
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