Unprofitable and Unstable, NetBank Ousts its CEO

Only one day after I posted my findings about NetBank's financial condition, NetBank (Nasdaq: NTBK) has announced that it will be replacing its CEO. So long. Hasta la vista, baby! This post was a follow up to my original posting where I speculated that something fishy was going on at NetBank, and that a worst-case scenario would be that NetBank customers would need to recover their funds from the FDIC if NetBank becomes insolvent. However, I noted that while this is certainly possible, it is not the most likely case.

To my blog readers at NetBank: I am glad that you have finally decided to pay some attention to me; it is a pity that you didn't afford me such attention when I was just a NetBank customer.

All joking aside, I think that replacing NetBank's CEO is a bold first move toward righting the problems at NetBank. Clearly, NetBank has finally admitted that there are serious problems going on. This is a statement by the new CEO taken from today's press release:

[NetBank's] main objective over the next three to six months will be to stabilize the company's operating profile and return to profitability as quickly as possible.

Overall, I think this is good sign. I'll be watching to see how NetBank follows through.

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