FDIC Report Details Reasons for Tenn. Commerce Bank Failure

The FDIC’s Office of Inspector General has released a failure report about Tennessee Commerce Bank, the state’s first bank failure in 10 years, the Nashville Business Journal reports. The bank was deemed to be in “troubled condition” by federal regulators in 2009; state and federal regulators closed it in January 2012. The new report lists bank management and board of director leadership as the primary reason for failure, but also suggested state regulars could have been more proactive. In the aftermath of the failure, a shareholder has filed a lawsuit against bank executives, and the bank's involvement with financial entrepreneur Ed Lowry also is being investigated.