More on New Frontier Bank Failure in Greeley
(related articles Silverado (5) – Silverado the Sequel: New Frontier Bank of Greeley)
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updated April 18, 2010.
New Frontier Ex-Workers Still Reeling (from the SF Examiner April 11, 2010)
New Frontier Failure: Non-Profits Also Effected (from the Greeley Tribune April 10, 2010)
FDIC List of Failed Banks Since 2000
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The suit against New Frontier Bank of Greeley has been filed against the bank officers and board members. What comes out in the suit that is new – or at least not developed in the previous piece
- Greg Bell was the chief loan officer who is alleged to have pushed through many of the irresponsible loans
- Loans with favorable interest rates were made to insiders, including Dean Juhl, even after he had been convicted of mortgage fraud
- Conflict of interest: In 2004, New Frontier built a new building in Greeley. Rather than buy the land, the bank entered into a lease arrangement with Gateway Holdings LLC, owned by New Frontier board members Seastrom, Brunner, Kammeier, Renfroe and Thissen. Throughout the course of the lease, the bank paid Gateway Holdings LLC more than $5 million, well above the market rate the bank would have paid to lease similar land, the lawsuit alleges.
The defendants have until February 5 to answer the charges.
Senators Bennet and Udall and US Congresswoman Markey have asked for the Justice Department to investigate. The Justice Dept has agree to review the request.
links that update the case
View from the Left Bank: Rob Prince's Blog 