Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 09-29-2007, 05:12 PM   #21
Full time employment: Posting here.
 
Join Date: Oct 2006
Posts: 898
Quote:
Originally Posted by ziggy29 View Post
If they can change the terms and the rates on the CDs, would that create a time window during which you can redeem the CD without the usual interest penalty? Seems only fair.
Technically, the terms and rates of the CDs of the failed bank are no longer operational, though the CD accounts have been transferred to the acquiring bank. In many cases, the acquiring bank will offer the CD holder in the failed bank a new CD, with the same rate and maturity as the CD in the failed bank. You are no longer locked into the old CD terms and rates and thus can pull out your funds with no penalty, perhaps as early as the next business day.

Net Bank, the failed bank, does not seem to be a traditional bricks and mortar bank. And you will note that the acquiring bank, ING, has a deposit base signifcantly cultivated from the internet. Welcome to the age of internet banking and an internet claims process, as well.
__________________

__________________
ChrisC is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-29-2007, 06:58 PM   #22
Thinks s/he gets paid by the post
DangerMouse's Avatar
 
Join Date: Jan 2007
Location: Silicon Valley
Posts: 1,812
Yowser, I totally missed this one. I do have an account with them, but think it has less than $50 in it. I had it on my list of things to do, that is close the account.
__________________

__________________

I be a girl, he's a boy. Think I maybe FIRED since July 08. Mid 40s, no kidlets. Actually am totally clueless as to what is going on with DH.
DangerMouse is offline   Reply With Quote
Old 09-29-2007, 08:41 PM   #23
Dryer sheet aficionado
 
Join Date: Jul 2007
Posts: 25
Quote:
Originally Posted by Texas Proud View Post
Seems like Cocobird can answer better as he was 'on the other side'... but yes, if they change the rates, you have a window to get your money out.. the previous contract was dissolved by the FDIC...

And Cocobird can answer this one even more so.... if it is a small bank, lots of time the FDIC will not allow a change.. they just bid the deposits out and take the highest bid... not worth the trouble.

When my bank (or should I say banks) failed way back when branch banking was not allowed.. so all our 'branches' were separate banks... the small ones were sold 'as is' and a few of them were sold for NEGATIVE dollars..
Whether someone can withdraw their funds from the CD or not depends on the contract that the assuming or acquiring bank signed with the FDIC. The agency negotiates with the buying bank and its goal is to make the transition as smooth as possible (meaning the customer should not notice any change except the name of the bank).

In some cases, customer were upset when the deal meant that they had to honor the terms of the CD contract. In other cases, customer were delighted when the buyer had to honor the contract (think back to when the banks offered rates of 18% during the high inflation days, and some people purchased 10 year CDs).

A buying can negotiate all kinds of things depending on the level of interest (very low) and the number of buyers (only one). If there is a high level of interest and multiple potential buyers, there is much less negotiating room.

Side note, in case anyone is interested: I'm a "she" not a "he".
__________________
cocobird is offline   Reply With Quote
Old 09-30-2007, 03:04 PM   #24
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 87
Thanks for the heads up. I was moving out of Netbank already. This gave me reason to finish the move!
__________________
ChemEng is offline   Reply With Quote
Old 09-30-2007, 04:44 PM   #25
Dryer sheet aficionado
 
Join Date: Apr 2004
Posts: 27
FYI - You can get $50 bonus if you open up an account with $250 at ING before Oct 1, 2007. This will let you try the ING products immediately.

Oliver

Link: $50 bonus - ING Direct : savings account; Exp. - 10/01/07 - iBankDesign

PS The above site is a great site to check on current bank promos.
__________________
Oliver is offline   Reply With Quote
Old 10-01-2007, 01:50 PM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
A point of clarification: netbank didn't go belly up because of loan losses. They went bust because they had a lousy business model and have been floundering & losing money for years. I've been watching their descent into the abyss for a while and wondering when the jig would finally be up. Now we know.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 10-01-2007, 02:06 PM   #27
Thinks s/he gets paid by the post
twaddle's Avatar
 
Join Date: Jun 2006
Posts: 1,378
Looks like lending losses didn't help:

OTS Appoints FDIC Receiver of NetBank


NetBank 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. As a result, the OTS executed a formal enforcement action with NetBank in 2006 directing the institution to correct its operating deficiencies and enhance its capital position. While the institution continued to operate in excess of minimum capital standards, the actions taken to address these problems were unsuccessful and it became clear that high operating expenses combined with continuing losses were jeopardizing the institution’s viability.
__________________

__________________
twaddle is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
FDIC Insurance........... FinanceDude FIRE and Money 20 09-29-2006 09:57 AM
Naval Air Station Keflavik Iceland closes Nords Other topics 0 09-16-2006 11:17 AM
Any options when 401k closes Sarah in SC FIRE and Money 7 08-27-2006 05:55 PM
FDIC and FCUA increases Martha FIRE and Money 0 03-16-2006 03:44 PM
Net Bank - Poor Customer Service Lancelot Other topics 7 09-22-2005 05:51 AM

 

 
All times are GMT -6. The time now is 11:35 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.