Why Local Pols Want to Investigate New Frontier Bank---Again

January 13 2010, 10:34 AM

Markey, BetsyGreeley's failed New Frontier Bank is under scrutiny again as U.S. Senator Mark Udall and U.S. Representative Betsy Markey (right) join U.S. Senator Michael Bennet's call for an investigation into allegations of fraud. In a letter to U.S. Attorney General Eric Holder, the lawmakers write, "As a result of the failure, too many productive farms are facing foreclosure and many small businesses are laying off employees or closing their doors" (via The Greeley Tribune). Lawmakers cite a recent Denver Post investigation that revealed potential wrongdoing, including bank officials rewriting delinquent loans to hide problems and forcing some borrowers to purchase bank stock before they could receive loans. The elected officials also cite ongoing Tribune reporting. Losses to the Federal Deposit Insurance Corporation may hit $1 billion, reports the Fort Collins Coloradoan. Former New Frontier Bank spokesman Joe Tennessen denies any arrangement requiring borrowers to buy stock. The bank's closure by the feds in April 2009 devastated local family farms and small businesses, whose loans are now held by the federal government, were sold to other banks, or have been recalled.