NetBank Meltdown and Everbank Escapes - Corporate News Article - everbank, netbank, everbank crisis

The Best Savings Rates, CD Rates, and More

	Email to friend
	Print

Other writing by Mass Market Tech

Tags

Investing, Stocks, Income, Dividends, Value, Buffett, Passive, Economy, Dividend, Retirements, Retirement, Bank, Money, Recession, Stock, Banks, Market, Stock market, Personal finance, Investment, Inflation, Checking, Credit, Savings, Bonuses.

NetBank Meltdown and Everbank Escapes

Article Submitted by: Mass Market Tech
Corporate News

Tags: Everbank, Netbank, Everbank crisis.

NetBank's stock is now worth $.08 as the company has lost big money on its loan portfolio. Everbank was supposed to buy them but the deal is off - lucky for Everbank.

Submitted: Sep 26, 2007 Views: 1616 Comments: 4 Likes: 9

There's a good article by Mr Wave Theory entitled After 10 Years, NetBank Finally Goes Bust. It paints a grim picture for NetBank one of the early Internet pioneers. It's stock which was as high as $80 in the bubble days is now down to $.08. According to the article, quite a bit of NetBank's loan portfolio was invested in RV loans which are basically trailer parks. That sounds worse that sub-prime. The company took a $200 million write-off several months ago and its stock was at $3.59. Apparantly, things haven't gotten any better.

Everbank entered into an agreement to acquire NetBank's loan porfolio. The only key closing condition was that the deal had to meet with regulatory approval before a certain date. Lucky for Everbank, regulatory approval didn't happen and deal is dead.

Sponsor Updates and Offers

Related Articles:

A No-Brainer Among No-Brainers by JRodgers - Nov 28, 2008
EverBank's World Currency CDs - My Interview with an EverBank Executive by ktexas - Jul 30, 2007
EverBank 4.76% APY Promo Rate Worth Considering by BankMan - Jun 20, 2008
Former Internet Star NetBank Shuts Down by Sam Cass - Sep 26, 2007
FDIC Takes Over NetBank - Some Interesting Facts about the Closure by ktexas - Oct 01, 2007.

9

Email this story Email to someone | Print Content | Add to reading list

Comments Received:

shraz
(Unregistered)

I was close to opening an account with them, good thing I didn't

Posted: Sep 26, 2007

Sam Cass

You're money would have been FDIC insured so it wouldn't have been a problem unless you put in more than $100,000K. I just found an article with more detail on this and am posting it.

Posted: Sep 26, 2007

Jorge
(Unregistered)

I was a Netbank customer for 7 years (2000-2007) and in their defense, I never had any problems with them. I just decided to close my account because their rates were no longer competitive with all the high interest internet-only banks in the last few years. In hindsight, they should have stuck with their core internet banking business instead of losing their shirt on their bad mortgages.

Posted: Sep 27, 2007

Author/Submitter Response:

Yup, they had a nice, profitable niche business. They really screwed it up when they bought RMG (I think that's the name). Sometimes you win, sometimes you lose.

© Copyright 2009 Mass Market Tech All rights reserved. Mass Market Tech has granted BestCashCow.com, LLC non-exclusive rights to display this work on Bestcashcow.com.

Financial products of all nature bear inherent risks and this website is not a financial advisory service; it is a forum for users to share and to compare notes and observations on financial publications. The website provides, free of charge, the technical and logistical apparatus and the medium for users to share and to publish financial information and to comment on publications. As such, the website’s operator can not and does not take responsibility for information, observations or opinions of any sort or nature provided by third parties with whom it is not affiliated who use the website to publish, to comment or as a means of solicitation. Users are specifically warned against following any advice related to specific instruments, including, but not limited to, equity securities, that may be provided by other users directly on this site or on web pages to which other users have provided links on this site. BestCashCow.com can not and does not check or verify the qualifications and credentials of users who publish or comment on this site or on linked pages. Users should seek personalized advice from qualified professionals regarding all personal financial issues and evaluate the risks and applicability to their own circumstances of each financial product discussed regardless of who the publisher is or purports to be. Should you, through your use of this site, identify an individual or organization purporting to offer personalized advice, you bear all responsibility to ensure that the individual or organization has the qualifications that they may represent on the website, and that their advice is appropriate for your circumstances. On certain webpages, BestCashCow.com provides information related to rates on US-based savings accounts, CDs, short-term government bonds, and other US cash equivalent securities, also free of charge to internet users for their independent use. The accuracy of this information is not guaranteed, and the information, like all other information on this website, should not be construed to provide investment advice, nor to endorse a financial product of any sort.

© 2009 BestCashCow.com, LLC. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy.