NetBank Shut Down by FDIC (insurance, creditors, mortgages, purchase)

[GreenMachine]

Anybody read about this?

The FDIC has shut this internet bank down for having too many default mortgages. Accounts up to $100,000 that are FDIC insured are safe... but what about the other accounts?

Greenie

[sunrico90]

Originally Posted by GreenMachine

Anybody read about this?

The FDIC has shut this internet bank down for having too many default mortgages. Accounts up to $100,000 that are FDIC insured are safe... but what about the other accounts?

Greenie

Depositors of NetBank will automatically become depositors of ING Bank.

Over the weekend, customers can access their money by writing checks, or by using their debit or ATM cards. Checks drawn on the bank that did not clear before today will be honored up to the insured limit. Starting on the morning of Monday, October 1, customers will have full access to their insured deposits via the Internet and for the foreseeable future should continue to utilize NetBank's current Website to transact banking business.

ING Bank has agreed to assume $1.5 billion of the failed bank's insured non-brokered deposits for a one percent premium and will purchase $724 million of assets. NetBank had approximately $109 million in 1,500 deposit accounts that exceeded the federal deposit insurance limit. While these customers will have access to their insured deposits, they will become creditors of the receivership for the amount of their uninsured funds.

In addition to continued access to their insured deposits, depositors of NetBank with deposits in excess of the insurance limits will also receive an immediate payment of 50 percent of their uninsured balance from the FDIC as receiver.

[GreenMachine]

Thanks for the info, Sunrico !!!