WASHINGTON — The failure of Guaranty Bank in Milwaukee was not unexpected, but the bank’s longtime executives insist that it could have been avoided if regulators had been just a little more patient.

Though the $1 billion-asset bank had been severely undercapitalized for years and had been operating under the harshest of enforcement orders since February, CEO Doug Levy and his father, Chairman and Chief Operating Officer Jerry Levy, said that Guaranty had turned a corner in recent quarters and was a month or two away from raising the funds it needed to be deemed “well-capitalized” by regulators.

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