Monday, September 10, 2007

NetBank Continued...

By now, I thought that I would be finished writing about the demise of NetBank. On May 21st, NetBank announced that it was selling a substantial portion of what remaining assets it has to privately held EverBank. At that time, I noted in my posting that when this sale closes, NetBank, as you know it, would be no more. According to the parties involved, this deal between NetBank and EverBank was supposed to be completed in late June or early July, resulting in the conversion of NetBank accounts to EverBank. However, June, July, and even August have passed without any further word on the state of the conversion. Then this notice appeared on the NetBank website:

NetBank is still actively working to transfer its deposit relationships to EverBank, an award-winning national financial services provider with an exceptional value proposition. When we announced our agreement with EverBank in May, we expected to first complete the sale of other bank investments to have the means necessary to meet the terms of the EverBank agreement. The sale of these investments is taking longer than originally anticipated.

Is the NetBank/EverBank deal in jeopardy? Apparently NetBank was not able to come up with the means to live up to their part of the deal. This is what else the NetBank site says:

EverBank remains interested in acquiring NetBank customers, and we continue to believe our customers would be well served by EverBank. If we consummate the EverBank agreement, we will let our customers know what to expect from an account conversion standpoint as early as possible. If the agreement is not consummated, NetBank expects to pursue another partner for its deposit relationships based on direction it received from its primary regulator.

I think that the key word here is "if". What does it mean to NetBank account holders? Mainly that your money may be in a state of limbo for a while longer. However, for NetBank (OTC: NBTK.PK) stock holders, your money is pretty much already lost, as I have said before. Note that NetBank is no longer listed on the Nasdaq, but now trades as a pink sheet stock.



fin_indie said...

You saw that they went out of business, right?

pfstock said...

I sure did! In fact, it is pretty much what I predicted nearly a year ago when I started pulling money out of my money market account at NetBank. I was afraid that NetBank might become insolvent, and that getting my money back from the FDIC would be a hassle.

Anyway a while ago, you mentioned that you had an account at NetBank. What did you decide to do with that?


Banks have been a big dispointment.