WTF, NetBank!

I’ve had a NetBank account since pre-Y2K.

I also had a CompuBank account, which got bought by NetBank, which resulted in me having multiple accounts of the same type at NetBank.

The point is, I banked with NetBank (amongst other banks) and logged on tonight to find the following:

From the NetBank website on 9/29/07:

FDIC Information for NetBank of Alpharetta, GA

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

I’d just like to say that nothing makes one’s day more than reading that your bank has failed.

NetNank’s site is down until Sunday evening when “normal bank operations” are supposed resume again. We’ll see…

From the ING Direct Press release site:

ING DIRECT Acquires Deposits of NetBank

Nation’s Largest Direct Bank Acquires Deposits and Customers of the Nation’s Oldest Direct Bank September 28, 2007, Wilmington, DE –

ING DIRECT, the nation’s largest direct bank and fourth largest thrift (part of Netherlands-based ING Groep NYSE: ING), today announced it will acquire $1.4 billion in deposits and 104,000 new customers of Netbank for $14 million.

Headquartered in Alpharetta, GA and established in 1996, Netbank was the nation’s oldest Internet bank serving retail and business customers in all 50 states.

The acquisition further strengthens ING DIRECT’s position as the leading direct bank which aims to meet the financial needs of “Main Street, USA.” “ING DIRECT has a passionate focus on delivering a first-rate, technology-enhanced customer experience and we want to ensure the early adopters remain at the forefront of branch-free online banking,” stated Arkadi Kuhlmann, CEO of ING DIRECT. “The acquisition of Netbank’s customer relationships is part of ING DIRECT’s goal to broaden its reach and inspire Americans to become a nation of savers. We anticipate a seamless transition for Netbank’s customers into the ING DIRECT family,” added Arkadi.

Since its inception in 2000, more than 5.5 million Americans have entrusted their savings with ING DIRECT, building the bank to $57 billion in deposits, $23 billion in mortgage loans and $75 billion in assets.

The transaction was approved and closed today by the Federal Deposit Insurance Corporation (FDIC).

I’m glad the ING Direct press release paints a much more positive picture.

Hooray to the FDIC for insuring accounts up to $100k. I certainly didn’t have that much money in my NetBank account, so I’m good.

Whew.

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3 Responses to “WTF, NetBank!”



  • When I was a kid the FDIC would only go as high as 10k. Inflation.


  • You’re much better off being under the ING name brand anyway. They’re huge, so little chance of them going under.


  • I am a victim of the ING – NetBank takeover, I have not been able to get to my checking or IRA accounts for 6 weeks. I am retired and depend on my IRAs and SSA payments for income. I am now completly out of money and have spent a lot of money trying to regain control. They say that they rejected my SSA Direct deposit which is now lost in cyberspace, they didn’t open a checking account, they didn’t send me a debit card and my CDs haven’t paid me for 2 months. I am at my wits end, I can’t even afford gas for the car.
    A real class act I’d say.

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