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EverBank Cancels NetBank Acquisition

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EverBank
Update 9/28/07: NetBank closed by the FDIC. See post for more details.

EverBank announced today that it has terminted its agreement to acquire NetBank's consumer deposit accounts, business finance division and other assets under the transaction announced on May 21, 2007. According to EverBank, "This decision comes after it became clear that NetBank would not be able to complete certain conditions required to close and receive regulatory approval."

From this Reuters' article, it doesn't look good for NetBank:
NetBank had struggled with mounting operating losses amid a tough interest-rate environment and lower mortgage originations. In May, it set plans to close its third-party mortgage business. But it later said it was having trouble selling enough investments to close with EverBank. It was not immediately clear what options NetBank still has for its remaining operations.

When they had announced this acquisition agreement in May, EverBank stated that they had expected to complete the transaction by early July. When July came and went without any updates, I was wondering what was going on. This explains it.

NetBank remains FDIC insured so your insured deposits should be safe regardless of what happens to NetBank. From this FDIC consumer news page:
Historically, the FDIC pays insured deposits within a few days after a bank closes, usually the next business day. In most cases, the FDIC will provide each depositor with a new account at another insured bank. Or, if arrangements cannot be made with another institution, the FDIC will issue a check to each depositor.

I don't know what would happen to promised bonuses however. NetBank still seems to be offering new account bonuses. Readers have mentioned receiving these bonuses as late as July. Hopefully, this will continue.
  Tags: EverBank

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Comments
3 comments.
Comment #1 by ProfessorB (anonymous) posted on
ProfessorB
Looks like it's time to jump ship for any remaining NetBank customers. Better to pick your next bank than to let someone else pick it for you.

1
Comment #2 by mk (anonymous) posted on
mk
Net Bank stopped being in the top tier long ago. That's when they lost my business.

1
Comment #3 by Anonymous posted on
Anonymous
Just heard that Feds closed netbank and ingdirect assumed responsibilities.
-Ram

1