NetBank - Alpharetta, GA Bank Gagal - Episode 340

**Freesia Brindski** (0:01)
Good afternoon, good afternoon. Thank you so much for joining me. This is the podcast, The Endurance of Labor Laws. I'm your lovely host, Freesia Brindisi. Today is episode 340, and we're going to take a look at another failed bank. So let's go ahead and dive in. So the next failed bank we're going to take a brief look at is called NetBank. And this one was located in Alpharetta, Georgia. My apologies if I mispronounced that. The acquiring bank that took them over is Ing Direct. And NetBank failed September 28th, 2007 So we're moving right along into the year of 2007 In terms of the background information, this one is a little bit different. So it says on Friday, September 28th, 2007, NetBank was closed by the Office of Thrift Supervision. The FDIC was named receiver. Ing Bank, FSB of Williamton, Delaware acquired all insured non-brokered accounts. That's very interesting wording. It says the FDIC as receiver for NetBank, Alpharetta, Georgia has taken all actions necessary to terminate the receivership estate. The receiver published a legal notice of intent to terminate the receivership on June 24th, 2021 and has made all dividend distributions required by law. Again, if it is not required by law, it's not going to happen. You will be screwed all your money. Effective October 1st, 2021 So not that long ago, right? It's about three years ago or four. Take that back October of this year, before years ago. The receiver was discharged and the receivership estate was terminated and ceased existence as a legal entity. Now for this one, they had a couple of different notices that were published, but it was kind of in a general sense. They had a note, a notice of intent to terminate from the FDIC.gov websites, but it listed all these banks, several banks that they had a notice of intent to terminate their receivership. It's kind of like, they just kind of did it all in one big batch. Then they had an actual official notice of termination. And again, it was just a list of banks that they're saying, hey, we are terminating all of these receivership estates for these banks. So first they published the notice of intent, and then they published the actual notice of it. That's just kind of how it goes. And it does list the dividend information, but I'm not gonna release that.
There is a press release, but let me read through some of this first. So this bank was a little bit different, because the receivership was not discharged until 2021, so it definitely took some time. It says, in regards to about Ing Direct, it says all insured non-broker deposits were transferred to Ing Bank FSB. Former NetBank locations reopened as branches of Ing Direct. Your transfer deposits were separately insured from any accounts you may have already had at Ing Direct for at least six months after the failure of NetBank. You may withdraw your funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with Ing Direct, as long as the deposits are not pledged as collateral for loans. So if they're collateral for loans, good luck with that. In regards to contacting Ing Direct, it says on November 1st, 2012, Ing Direct, oh, wow, merged with Capital One. Not surprised. This is why it rings a bell. When I saw Ing, I was like, I feel like this might be Capital One. So they merged with Capital One National Association. It says you can contact Capital One National Association. Their address is 1680 Capital One Drive. Oh, they got to have an address named after them. How fancy is that? In McLean, Virginia, zip code 22102, and then they have their Capital One National Association website, which is just capitalone.com, but they are considered a national association. In terms of the actual press release for this one, there was an immediate press release that came out in September 28th of 2007 And again, this was released directly from the Federal Deposit Insurance Corporation, also known as FDIC. The media contact is David Barr at 202-898-6992.
And his email address is D.Barr, so D-B-A-R-R at FDIC.gov. It says, FDIC approves the assumption of the insured deposits of NetBank, Alpharetta, Georgia. The Board of Directors of the Federal Deposit Insurance Corporation, FDIC, approve the assumption of the insured deposits of NetBank, located in Alpharetta, Georgia, by ING Bank, FSB, located in Wilmington, Delaware. NetBank, ooh, this is why this one was so interesting. Okay, NetBank with $2.5 billion in total assets and $2.3 billion in total deposits as of June 30th was closed by the Office of Thrift Supervision and the FDIC was named receiver. The Eiffel Bank was an, oh wow, was an intranet bank. This is why it was so shady. If Eiffel Bank was an intranet bank, it did not have any physical branches. Depositors of NetBank will automatically become depositors of Ing Bank. Over the weekend, customers can access their money by writing checks or by using their debit or ATM cards. Checks drawn on the bank that did not clear before today will be honored up to the insured limit. Starting on the morning of Monday, October 1st of that year, customers will have full access to their insured deposits via the intranet, which that was pretty scandals back in the day, because the internet was not really used for internet banking back then, not like it is today, and for sure not on your phone.