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Thread: Bank Failure in Georgia

  1. #1
    God/dess Deogol's Avatar
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    Default Bank Failure in Georgia

    Yes, it does happen!

    --------------------------



    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. All insured depositors are now customers of ING Direct Bank, member FDIC. 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 FDIC has compiled information which should answer many of your questions.

    Please select the link below to read more about this event:

    FDIC Bank Closing Information for NetBank

  2. #2
    Banned Melonie's Avatar
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    Default Re: Bank Failure in Georgia

    and if you research this story further, you'll find that ING Direct spent a fair amount of money to acquired a large portion of NetBank's deposit accounts, with unknown future effects on the profitability / stability of ING Direct !

    (snip)" NetBank Losses

    NetBank had ``significant'' losses last year from loan defaults, weak underwriting, poor documentation, lack of proper controls and failed business strategies, the U.S. thrift watchdog said.

    In November 2006, the bank unwound a mortgage division that extended loans to riskier borrowers, selling some assets of its RV, boat and aircraft financing operation to members of its senior management.

    ``This does not say anything regarding the health of the thrift industry,'' said Kevin Petrasic, the savings-and-loan regulator's managing director of external affairs. ``This was an isolated situation.''

    NetBank had $2.5 billion in assets and $2.3 billion in total deposits as of June 30, according to the FDIC, which insured its deposits. The bank didn't have any physical branches. Its depositors will automatically be moved to ING Bank, the FDIC said in a news release.

    ``Customers of NetBank should have confidence and security knowing that they will have access to their insured funds in a timely and orderly manner,'' FDIC Chairman Sheila Bair said in the statement.

    ING Steps In

    ING Bank chose to acquire NetBank's deposits to gain access to its online customer base, which is similar to ING's, Arkadi Kuhlmann, ING Direct chief executive officer, said in a telephone interview."(snip)

  3. #3
    God/dess Deogol's Avatar
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    Default Re: Bank Failure in Georgia

    Isolated like this?



    On February 2, 2007, Metropolitan Savings Bank, Pittsburgh, Pennsylvania was closed by the State of Pennsylvania, Department of Banking 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 car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution. The FDIC has compiled the following information which should help answer many of your questions.

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