Bids open for New Frontier Bank loans
July 23, 2009
By MoneyAisle
According to the Denver Post, federal bank regulators have been forced to auction $750 million of agricultural loans from the failed New Frontier Bank after no banks in Colorado were interested in taking over them.
“New Frontier’s closure – hastened by shoddy lending practices and heavy reliance on high-interest certificates of deposit – ranks as the third-most expensive bank failure nationally this year. It was so gorged with troubled assets that for the first time in more than 30 years, regulators couldn’t find another bank to liquidate it.”
In a statement, FDIC spokesman David Barr said, “Now we’ve got to the point where we need to auction these loans and get them back into the private sector… You’d have to go back to the ‘80s to find a sale of agriculture loans like this.”