Several International Banks made national and international headlines in 2008/9. Some of the banks were forcibly closed down by the regulators. Analysis shows that each bank owed their downfall to poor oversight by management and overly aggressive pursuit of commercial real estate loans.

Often banks had a larger amount in nonperforming loans and a lesser amount in total equity capital so the result was obvious.

And the banks were shut down for its loan losses and poor capital position and often with twice the equity in nonperforming loans. These banks tried to grow their loans and branches too aggressively and did not have adequate measures in place to govern risk.

In the case of Failed Non Compliant Bank (FNC Bank), the institution's commercial real estate loans totaled 65 percent of the bank's total loan portfolio according to regulators. By June of 2007, FNC's commercial real estate loans represented 338 percent of total capital, according to the report.

Regulators determined FNC's "aggressive loan growth strategy" included "poorly structured and underwritten real-estate-dependent loans in a highly competitive market."

The decline in real estate values compounded the problem and resulted in many of the projects that received loans being abandoned.

The report states that "because the bank's risk management and loan administration practices were inadequate, the (board of directors) was slow to recognize the increasing risk in FNC's loan portfolio and lending program as residential real estate values started to decline."

Failed Non Compliant Bank also deviated from the original business plan it submitted to regulators during its startup by embarking on aggressive branch expansion, according to regulators. At the time Failed Non Compliant Bank was shuttered, it had opened five branches in the area and planned even more for the future.

The rapid branch expansion "increased the bank's overhead costs; placed additional strain on earnings, which had been historically weak; and contributed to the bank's increasing reliance on non-core deposits to fund its asset growth," the report states.

FNC Bank, which had grown to four branches since being chartered also tried to increase its footprint too rapidly, regulators determined.

The bank also used an "aggressive, high-risk business strategy" and used "high-cost/volatile liquidity sources" to fund its asset growth.

Regulators placed much of the blame on the bank's founding president and chief executive officer who had a history of trying to aggressively grow banks "without establishing adequate risk management controls."

The report makes brief mention of the decline in real estate values during the period FNC was operating, however many believe that was a primary factor -- rather than a side note -- in terms of what went wrong at the bank.

The Inspector General's report also places some of the blame on regulators. The report states, regulators relied on the expectation that board members would be conservative enough to rein in aggressive lending practices Anthony may have engaged in previously.

All bankers probably should have been more aware of the age-old premise that everything that goes up must come down.

Bankers maybe should have been more aware instead of being encouraged to lend. They (the government) wanted everyone to own a home, and through regulatory policies, that's what happened.

But that did not happen.