WASHINGTON - The Federal Deposit Insurance Corp. has banned Jack O. Grace, the former chief financial officer of BestBank, from the banking industry and fined him $25,000.
The ban was announced last week. BestBank, based in Boulder, Colo., failed in 1998 after regulators discovered that it was undercapitalized and had not properly valued its subprime residuals. The failure ultimately cost the FDIC three-fourths of BestBank's $314 million of assets.