30 September 2007

FDIC Shuts Down NetBank

This will be the first of many, and proves that online business (NetBank was an online bank) obey the same economic laws as other businesses.
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.
This is just the beginning.


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