January 30, 2009 – 12:30 pm

The Office of Thrift Supervision has issued a cease-and-desist order to prevent New Frontier Bank of Greeley, CO, from taking on new business or extending fresh credit.

The cease-and-desist order, which was effective Dec. 2, but not reported publicly until Friday, states that the bank was involved in “unsafe or unsound banking practices and violations of law and regulations.” The order requires the bank to provide plans to deal with several problems, including finding more capital, reducing bad debt, restating its finances and requiring better oversight of operations. The deal also demands the removal of president Larry Seastrom and chief lending officer Greg Bell from their positions, giving the bank one more month to find replacements. 

You can read the official FDIC press release here.

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