The Collapse of An Online Bank
Saturday, September 29th, 2007NetBank, one of the first online-only banks in the 1990s, finally made to the Wall Street Journal headlines again. Unfortunately, this time, the news is NetBank is closed by federal regulators after suffering significant loss in the aftermath of housing bubble. According to the notice shown on the NetBank homepage:
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.
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