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Two directives from federal regulators ordering AnchorBank to get its finances in better shape have been lifted, the Madison bank said Wednesday.

A cease and desist order, issued against AnchorBank in June 2009, and a prompt corrective action order, imposed in August 2010, have been terminated by the Office of the Comptroller of the Currency.

The bank was told to shore up its capitalization, reduce its portfolio of bad loans, and strengthen management.

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As a result, former Milwaukee banker Chris Bauer was hired as CEO, 15 branches were sold, and costs were cut.

Last September, the bank’s holding company, Anchor BanCorp Wisconsin, completed a bankruptcy reorganization and $175 million recapitalization by investors.

A cease and desist order still stands against the parent company, which is regulated by the Federal Reserve. The Fed “will not evaluate a change in enforcement action status until the primary regulator acts, in our case, the OCC. With the OCC having now acted, the Federal Reserve will commence its evaluation according to its own internal processes,” Anchor spokeswoman Jennifer Ranville said.

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