FDIC closed NET Bank today. It was closed because of loses in it's mortgage loan portfolio. Net Bank had about 2 billion dollars in deposits all but 106 million were covered by FDIC. The people with the 106 million in deposits over the FDIC limit will become normal creditors of the bank. Good luck!
Why would these people deposit more than what FDIC would cover? Were they chasing rates?
Why would these people deposit more than what FDIC would cover? Were they chasing rates?