Cape Fear Bank’s cascade of calamities

In issuing a cease-and-desist order aimed at troubled Cape Fear Bank’s lending practicies, the FDIC really lit into what it describes as serious mismanagement at the institution. Some of the specific findings:

The board did not give “adequate supervision over and direction to the Management of the bank.” Polices were in place “detrimental to the Bank and jeopardize the safety of its deposits.” “Operating with a large volume of poor quality loans.” Lending practices that were “hazardous” Collection practices that were “lax.”

The bank is now under the close supervision of federal and state regulators.