Safety and Soundness: Material Loss Review of Lydian Private Bank. Audit Report.

摘要

This report presents the results of our material loss review of the failure of Lydian Private Bank (Lydian), of Palm Beach, Florida, and the former Office of Thrift Supervisions (OTS) supervision of the institution. OTS regulated Lydian until July 21, 2011, when the Office of the Comptroller of the Currency (OCC) assumed regulatory responsibility for federal savings associations pursuant to P.L. 111-203. OCC closed the thrift and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver on August 19, 2011. Section 38(k) of the Federal Deposit Insurance Act mandated this review because of the magnitude of the thrifts estimated loss to the Deposit Insurance Fund. As of December 31, 2011, FDIC estimated that loss at $292.1 million. The objectives of our review were to determine the causes of the thrifts failure; assess OTSs supervision of the thrift, including implementation of the prompt corrective action (PCA) provisions of section 38; and make recommendations for preventing any such loss in the future. We also assessed OCCs implementation of PCA provisions of section 38 from July 21, 2011, through the banks closure on August 19, 2011.