Netbank implosion - a failure of internet banking?

Netbank implosion - a failure of internet banking?

In an industry that has resisted virtualizing, NetBank brings the latest piece of bad news. The trail blazing internet-only savings and loan bank is being taken over by federal regulators, in what is being called the biggest bank failure in 14 years.

Started in the peak of the last boom, the bank saw its ups and downs as it debuted on Nasdaq and hit a high of $57 in 1999, only to get delisted in August of this year. The failure seems to have more to do with Netbank writing bad loans, rather than, necessarily, with consumers lack of trust of online banks.

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2 Responses to “Netbank implosion - a failure of internet banking?”

  1. By Chris on Nov 24, 2021 | Reply

    I’m less worried about online banking now that the FDIC has shown us that they do step in and take over. There are new temporary limits for the FDIC until 12/31/09. Use an online bank that is FDIC insured.

    FDIC insures up to $250,000 per depositor. Keep in mind that individual and joint accounts are insured separately, so if you have both types of accounts, your total deposits can be insured up to $500,000; that’s up to $250,000 in all your individual accounts and up to an additional $250,000 in your joint accounts.

    Source: http://venturebankdirect.com/faqs.php

  2. By Marcus on Dec 17, 2021 | Reply

    Great resource Chris, I checked out Venture Bank Direct and have been happy so far. They added an online checking account which is a big plus for me. Makes for easy access.

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