The Federal Deposit Insurance Corp. has reached a settlement with former executives at the failed LandMark Bank of Florida.
The FDIC will receive $650,000 from Chartis Specialty Insurance, the defunct bank's insurer. In return, the FDIC will not pursue further legal action against the former executives. Chartis was also released from any interest related to the policy, along with any future liability related to the FDIC's receivership.
LandMark experienced major losses in the aftermath of the bursting real estate bubble, Florida being one of the hardest hit real estate markets. LandMark reportedly held about $47 million in bad loans before regulators shut the bank down, according to The Sarasota Herald-Tribune. Florida's Office of Financial Regulation closed the bank, which had been based out of Sarasota, in July 2011.
American Momentum Bank in Tampa, Fla., bought LandMark from the FDIC.