Jump to content
House Price Crash Forum
Sign in to follow this  
domo

Incoming: Bank Fails In Us

Recommended Posts

http://www.ft.com/cms/s/0/b58d03ee-6dfc-11...00779fd2ac.html

ING Direct steps in as US bank collapses

By Ben White in New York

Published: September 28 2007 21:06 | Last updated: September 29 2007 00:09

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.

It also underscores the ongoing impact of the US mortgage crisis, which has destabilised banks around the world, including Northern Rock in the UK.

ING said it would take on about $1.5bn in deposits insured by the Federal Deposit Insurance Corporation. It said it had paid about $15m to acquire the deposits. ING will also acquire $724m in assets from NetBank, which filed for bankruptcy protection.

ING Direct’s announcement came just an hour after the Office of Thrift Supervision, which oversees US lenders, said it would close NetBank following loan losses.

In addition to the losses, OTS said Georgia-based NetBank failed to improve what the regulator said were weak underwriting standards, poor documentation, a lack of proper controls and failed business strategies.

The FDIC said NetBank had approximately $109m in1,500 deposit accounts that exceeded the federal deposit insurance limit. These customers will have access to their insured deposits but will become creditors for the their uninsured funds.

Still feel safe with that online account?

Share this post


Link to post
Share on other sites
Still feel safe with that online account?

I've never felt safe with any of the on-line accounts... But what are the mains ones in Britain, and who owns them?

Virgin and ING-Direct are the only two that spring to mind...

Does this acquisition show that ING is flush with cash, or that it is in serious trouble itself and desperately trying to make out that it is flush - like a bluffing poker player?

Share this post


Link to post
Share on other sites
I've never felt safe with any of the on-line accounts... But what are the mains ones in Britain, and who owns them?

Virgin and ING-Direct are the only two that spring to mind...

Does this acquisition show that ING is flush with cash, or that it is in serious trouble itself and desperately trying to make out that it is flush - like a bluffing poker player?

I've got online for the convenience and rates but keep below £33k with each.

I think ING actually is flush with cash. They haven't bothered putting up their rates for ages and a few montsh ago sent a letter that seemed to actually encourage people to switch to another bank if they wanted better rates.

Share this post


Link to post
Share on other sites

Egg is now owned by Citibank (which in my opinion is not a very prudent bank).

I would only use them for the "Egg Money" credit card which gives you 1% cash back, I would certainly not keep my savings either with Egg or with Cahoot.

Share this post


Link to post
Share on other sites

$2.5bn? A gnat's ass in the banking world. But one whose flapping could cause a hurricane in unexpected parts? (We seem to be living in an increasingly chaotic [financial] world).

Share this post


Link to post
Share on other sites
I've never felt safe with any of the on-line accounts... But what are the mains ones in Britain, and who owns them?

Virgin and ING-Direct are the only two that spring to mind...

Does this acquisition show that ING is flush with cash, or that it is in serious trouble itself and desperately trying to make out that it is flush - like a bluffing poker player?

ING are about as safe as they come (at the moment!) - ING Direct only started doing mortgages in the UK a couple of years ago, they started off with just savings accounts

This link shows their business model

Share this post


Link to post
Share on other sites
cahoot? Part of Abbey, Part of Santander. They ok?

I pulled my £140K out of Cahoot last week after Northern Rock, and it is sitting "safely" in one of the big four banks.

Why risk it?

Cahoot is probably OK, but Abbey has been offering some silly sub-prime mortgages recently.

Also Cahoot is internet-only, so there is no physical queue to go and join if the balloon goes up, and there is only so many times you can keep clicking "refresh".

Edited by neil9327

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 355 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.