WASHINGTON — The Office of the Comptroller of the Currency was not tough enough in targeting problems at First National Bank Holding Co. of Scottsdale, Ariz., before its subsidiaries failed in July, an oversight report said Tuesday.

OCC officials did delay an order against First National in part because an investor was weighing a capital injection, but overall the agency "should have taken formal enforcement action much sooner," said the report from the Treasury Department's inspector general. "We believe that OCC did not issue formal enforcement action for any of the banks in a timely manner and was not aggressive enough in its supervision of the banks in light of their weak management practices."

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