One more bank goes under

By Chris Carey, Bailout Sleuth

Florida regulators seized a bank in Naples, Fla., on Friday, making it the 124^th to be closed this year.

The Federal Deposit Insurance Corp. was appointed as the receiver for Commerce Bank of Southwest Florida. It arranged for Central Bank, of Stillwater, Minn., to assume the failed bank’s $76.7 million in deposits and $79.7 million in assets.

The FDIC agreed to a loss-sharing deal with Central Bank on $61 million of those assets.

The FDIC had issued a cease-and-desist order against Central Bank in August, citing “unsafe and unsound” practices. The agency said Friday that the closing would cost its insurance fund an estimated $23.6 million.

Central Bank has now taken over four closed banks this year in deals brokered by regulators.

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