FIs closed: Lydian Private Bank, Palm Beach, Florida, USA
On Friday, 19 August, 2011, Lydian Private Bank, Palm Beach, Florida, USA, including its division Virtual Bank, was closed by the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with Sabadell United Bank, National Association, Miami, Florida, to assume all of the deposits of Lydian Private Bank.
The five branches of Lydian Private Bank will reopen on Monday (today) as branches of Sabadell United Bank, National Association.
As of 30 June, 2011, Lydian Private Bank had approximately USD1,700 million in total assets and USD1,204 million in total deposits. In addition to assuming all of the deposits of the failed bank, Sabadell United Bank, National Association agreed to purchase essentially all of the assets.
No premium was paid for the deposits.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be USD293.2 million. Lydian Private Bank is the 66th FDIC-insured institution to fail in the nation this year, and the tenth in Florida.
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