Online bank NetBank was closed by the federal regulator today. FDIC arranged its takeover by ING Direct. This is consistent with what FDIC usually does, as described in my previous post What Happens When a Bank Goes Out of Business.
1,500 unlucky customers have $109 million over the FDIC insurance limit. That’s an average of more than $72,000 each! I don’t know what these customers were thinking. The trouble at NetBank was known for quite a while. Previously NetBank announced they would merge with EverBank. But the merger collapsed.
For more details, see FDIC announcement.