ug. 19, 2011 Lydian Private Bank was born during one bubble and died in the aftermath of another. Federal regulators Friday closed Palm Beach-based Lydian in a bank failure that's expected to cost the Federal Deposit Insurance Corp.'s Deposit Insurance Fund $293.2 million. Lydian's five branches will

did questions about Lydian's ability to survive. The federal Office of Thrift Supervision last year issued a cease-and-desist order that criticized Lydian on a variety of fronts. Regulators said Lydian had an Inadequate level of capital" and must hire "experienced and qualified managers and lending st

l after a $2.7 bid at an auction last spring. It is owned by Nancy Mendel, a Sotheby's agent. She listed it at $4.2 and now $3.499. She owes $2.6 to Lydian. There is no foreclosure n n roperty but one was filed in July against her other house and homestead at by Bank of NY/Mellon on a $1.5 mortgage