The Office of Thrift Supervision, which is the primary regulator of all federal and many state-chartered thrift institutions, including savings banks and savings and loan associations, issued a cease and desist order against Palm Beach-based Lydian Private Bank on September 16, 2010. Lydian, which also maintains an office in Coral Gables, Florida, was ordered to raise more capital and was cited for, among other things, having inadequate supervision and an inadequate number of experienced and qualified managers and lending staff. The regulatory order also faulted Lydian for “failing to ensure that all transactions with affiliates comply with applicable laws and regulation.”
The regulatory order against Lydian is consistent with increased regulatory scrutiny being conducted against banks and other lending institutions in the wake of the financial meltdown that began with the sub-prime crisis and that led to the failure of numerous financial institutions over the past several years.
Dimond Kaplan & Rothstein, P.A. represents investors in Miami, South Florida, and throughout the United States and Latin America in case involving investment fraud and bank and brokerage firm misconduct.