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FDIC New Frontier Report: Bank Was Warned Of Risky Practices As Early As 2004

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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.

Read the whole story at The Fort Collins Coloradoan