Largest Bank Closure Since S&L Crisis


From the Financial Times:

ING Direct, a subsidiary of the Dutch financial group, is to take over the customers and insured deposits of NetBank, an online lender with $2.5bn (£1.2bn) in assets that was shut down on Friday by the US government following losses on subprime mortgages and other loans.

The closure marks the largest US bank failure since the end of the savings and loan crisis in the early 1990s.


Stirling Newberry September 28, 2007 - 8:33pm
( categories: Business )

"NetBank had $109 million in deposit accounts that exceeded the FDIC limit. Those customers will become creditors in NetBank's receivership, the FDIC said."

http://www.msnbc.msn.com/id/21039715/

JustAskin September 29, 2007 - 9:50am

'Central banks, in an attempt to artificially suppress the interest rate, keep increasing credit and money supply. The relentless rise in "circulation credit" — that is, credit created out of thin air — causes inflation, induces distortions in relative prices and encourages malinvestment, which, sooner or later, leads to an economic slump.' - The Shaking Tower of Debt By Thorsten Polleit
http://www.mises.org/story/2716

'The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.' - Ludwig von Mises

"We can have democracy in this country or we can have great concentrated wealth in the hands of a few. We cannot have both." - Supreme Court Justice Louis Brandeis.

CajunCountry September 29, 2007 - 12:47pm

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