Yor bank cant compensate you because all they have is a check with insuffisiant funds. your bank will only compensate you is someone gets money out of your account in a fraudulent way such as identity theft, credit card/debit card theft, or you purchase something you did not recieve or dispute purchase, things of that nature.and then it would be investigated by the fruad department before any compensation.
his bank cannot give you his infomation as you would not want your bank giving your info.they cant go on what you say.however banks have fraud departments that can look into your complaint but will still ask for a police report be filed.most likley the guy is not in good standings with his bank and his account may have been closed before the transaction. in any case they wont compensate you when the fraud is on the suspect they will let him take care of it. you can imagine how much banks would loose if every time one of the customers wrote a bad check they sent the due amount to the recipiant. they wouldnt be in business long! tc