In 2001, the federal government seized Superior Bank FSB, an Illinois-based subprime lender. While the Federal Deposit Insurance Corp. sought a buyer for the troubled bank, the FDIC ran Superior's subprime-mortgage division. Thousands of new subprime loans were made under the supervision of the FDIC, according to federal data. The situation will likely spur criticism that banking regulators missed the red flags about subprime loans.
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