Safety and Soundness: Material Loss Review of Riverside National Bank of Florida. Audit Report.

摘要

This report presents the results of our material loss review of the failure of Riverside National Bank of Florida (Riverside), of Fort Pierce, Florida, and of the Office of the Comptroller of the Currencys (OCC) supervision of the institution. OCC closed Riverside and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver on April 16, 2010. This review is mandated by section 38(k) of the Federal Deposit Insurance Act because of the magnitude of Riversides estimated loss to the Deposit Insurance Fund (DIF). As of December 31, 2011, FDIC estimated that the loss would be $240.9 million. FDIC also estimated that Riversides failure resulted in a loss of $8.3 million to FDICs Transaction Account Guarantee Program. Our objectives were to determine the causes of Riversides failure and associated impact to the DIF; assess OCCs supervision of Riverside, including implementation of the prompt corrective action (PCA) provisions of section 38; and make recommendations for preventing such a loss in the future.