My fiancee was not amused……
WASHINGTON – An online bank with $2.5 billion in assets was shut down by the government on Friday because of an unsustainable level of mortgage defaults.
The federal Office of Thrift Supervision said it appointed the Federal Deposit Insurance Corp. as a receiver for Alpharetta, Ga.-based NetBank Inc. The FDIC said $1.5 billion in insured deposits will be assumed by ING Bank, part of Dutch financial giant ING Groep NV.
NetBank, which had no physical branches, “sustained significant losses in 2006 primarily due to early payment defaults on loans sold, weak underwriting, poor documentation, a lack of proper controls, and failed business strategies,” the OTS said in a statement.
Regulators shut online bank NetBank – Yahoo! News