The FDIC said that approximately $4 million in deposits were in accounts that might have exceeded deposit insurance limits. Although Colorado Bank Commissioner Fred Joseph's press release on New Frontier provided no reason for the closing, the FDIC had issued a cease and desist order to the institution on Dec. 2, requiring it to stop violations of regulations and law, as well as "unsafe and unsound" practices. The order required the institution to submit plans for raising capital and improving oversight of operations and required the removal of New Frontier's president and chief lending officer. According to published reports, the bank was making real estate loans that were far too large for an institution of its size. TheStreet.com Ratings had assigned New Frontier a D-minus rating based on Dec. 31, 2008 financial information, downgrading the rating from D-plus the previous quarter.