Business

Business

Mortgage defaults spur shutdown of NetBank

September 29, 2007

Advertisement

NetBank Inc., an online bank with $2.5 billion in assets, was shut down by the government on Friday because of an excessive level of mortgage defaults.

It was the largest savings and loan failure since the tail end of the industry's crisis more than 14 years ago. Federal regulators appointed the Federal Deposit Insurance Corp. as a receiver for Alpharetta, Ga.-based NetBank.

Comments

toefungus 7 years, 10 months ago

Another Savings and Loan. These seem to be the weakest link in the banking industry.

Godot 7 years, 10 months ago

"http://www.netbank.com/

On September 28, 2007, NetBank, Alpharetta, GA was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a business checking account, a Social Security direct deposit, and other relationships with the institution.

The NetBank web site will be closed from 3:00 pm to 6:00 EST, on September 28th and will reopen in a read only mode. Normal online services will be restored in the early evening Sunday, September 30th."

Godot 7 years, 10 months ago

Great River Bank offers cd's at 5.15%! Too bad they have been taken over by the Feds, too.

http://www.federalreserve.gov/newsevents/press/enforcement/enf20070926a1.pdf

www.greatriverbank.com

toefungus 7 years, 10 months ago

Beside Capitol Federal, are there any other thrifts in town?

Commenting has been disabled for this item.