NetBank Meltdown and Everbank Escapes

Article Submitted by: Mass Market Tech
Corporate News


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: 616    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.

 




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Comments Received:

shraz
(not registered user)

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

Posted: Sep 26, 2007

Sam Cass
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
(not registered user)

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.



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