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ING Direct steps in as US bank collapses

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posted on Sep, 30 2007 @ 04:31 PM
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ING Direct steps in as US bank collapses


www.msnbc.msn.com

By Ben White in New York

Updated: 2:42 a.m. ET Sept 29, 2007
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.

(visit the link for the full news article)




posted on Sep, 30 2007 @ 04:31 PM
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This is a bad sign for US banking systems.Will there be major media coverage of this in the days to come? Will there be runs on US Banks? Or does the Net Banks not effect US confidence?

www.msnbc.msn.com
(visit the link for the full news article)

[edit on 30-9-2007 by dntwastetime]



posted on Sep, 30 2007 @ 05:47 PM
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This doesn´t suprise me one bit with the Euro now almost at 1.43USD...

Good thing ING stepped in, a little Dutch pride here


Who´s next??



posted on Sep, 30 2007 @ 06:09 PM
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And what about the UK bank which lost alot of money and received a credit from the government? Anyone heard about that?

Pretty bizarre how suddenly these failing bank stories are popping up in the media.



posted on Sep, 30 2007 @ 08:14 PM
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Originally posted by Truth4hire
This doesn´t suprise me one bit with the Euro now almost at 1.43USD...

Good thing ING stepped in, a little Dutch pride here


Who´s next??



so then, you must have personally had a net gain as a result?

qui bono?



posted on Sep, 30 2007 @ 08:21 PM
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What stands-out to me in this story is:

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.

That's 1,500 accounts left holding IOU's for funds totaling $109 MM. Do you think any of these folks might consider closing their accounts in favor of conventional banking, or even under the mattress? On top of this, any remaining NetBank shareholders ( NTBK.PK), were left up the proverbial creek.

After backing out of a larger NetBank deal, EverBank, another online financier, also agreed to chip-in for $700MM worth of NetBank assets. With Internet financial institutions circling the wagons to save eachother's hide, online stock brokerages...those with broad exposure to the mortgage industry could also be vulnerable. It will be interesting to how the financial sector interprets this news...the buy-out announcements were made after market close.



posted on Sep, 30 2007 @ 08:37 PM
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There's an easy solution to this problem.

If you're scared at all of bank failures, just make sure you have less than $100,000 in each bank. Unless you're crazy rich, you should be able to find enough banks in your community to deposit your cash in $100K chunks without any risk of not being covered by FDIC insurance.

[edit on 9/30/2007 by djohnsto77]



posted on Sep, 30 2007 @ 09:14 PM
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Originally posted by djohnsto77

If you're scared at all of bank failures, just make sure you have less than $100,000 in each bank.


That's certainly the way a reasonable person might approach it, but then a reasonable person probably wouldn't deposit in excess of the FDIC insurance limit in an online banking firm, whose stock has been in serious decline since last May. At issue, is an attempt to preserve consumer confidence in Internet financial institutions. After this failure, and the next...it may become an uphill battle.



posted on Sep, 30 2007 @ 09:21 PM
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Nice find DWT. Youve got a knack for finding the hot articles that keep the ATS'rs begging for more.

I think that having foreign banks stepping in to bail us out of the crunch we are in is a scary scenario in itself. If this continues to happen, which it is predicted to do for about another 4 years, then the US economy will be completely run by foreign entities. Watch out, I think this is going to get MUCH worse.



posted on Sep, 30 2007 @ 11:59 PM
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Originally posted by OBE1

Originally posted by djohnsto77

If you're scared at all of bank failures, just make sure you have less than $100,000 in each bank.


That's certainly the way a reasonable person might approach it, but then a reasonable person probably wouldn't deposit in excess of the FDIC insurance limit in an online banking firm, whose stock has been in serious decline since last May. At issue, is an attempt to preserve consumer confidence in Internet financial institutions. After this failure, and the next...it may become an uphill battle.


You would think people with real amounts of money would know how to protect it, but a good portion of them don't. I am suprised that they don't diversify their bank accounts more than they do. I often find accounts in excess of the FDIC limits and they don't have a clue.

Strange.



posted on Oct, 1 2007 @ 12:03 AM
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$2.5 billion? Hold the phone, that's a lot of assets!!!

/end sarcasm

First Tennessee, a little-known bank that I use, has assets of 36.6 billion.

nashvillejobslink.com...



posted on Oct, 1 2007 @ 12:31 AM
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Do you know what FDIC really stands for?

Frigging Doesn't Insure Crap!!

It's a fraud designed to promote confidence in the banking system. This confidence does way more to prop up the banks than the FDIC's assets could ever really do. FDIC only has $50 Billion in assets, and supposedly insures trillions... Hmm, thats pretty easy math!! Countrywide alone had over $100 Billion in assets!

When it hits the fan, don't count on the FDIC...



posted on Oct, 1 2007 @ 12:35 AM
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reply to post by sp00n1
 


Dude, there's no way that all assets in banks could be insured without the actual bankruptcy of the federal gov't. Just be glad you have some insurance at all.



posted on Oct, 1 2007 @ 12:37 AM
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This is not good news at all...I swear it is like the calm before the storm..."The Financial Storm". Creepy stuff...



posted on Oct, 1 2007 @ 12:37 AM
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Originally posted by uberarcanist
$2.5 billion? Hold the phone, that's a lot of assets!!!


I'm sure those 1,500 account holders will sleep much better now.

/end sarcasm



posted on Oct, 1 2007 @ 01:43 AM
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Lets put a face on the NetBank failure



Could they lose $900K?

Every penny I saved for the last 10 years was in this," said Colthrust, 39. "Basically all of our operating funds and accounts were in that bank. Everything we've worked for the last 2 years [could be] up in smoke.

Why keep the business's money in an online bank? When Colthrust had approached traditional brick-and-mortar banks to open a commercial account, he found them unhelpful and the paperwork daunting. He never imagined losing access to his money. Link


Hidden beneath this "rolling crises" lies the real culprit; over-the-counter credit derivatives of mind-numbing proportions. US Federal Reserve smoke & European Central Bank mirrors, can't fix this problem...and they know it.

[edit on 1-10-2007 by OBE1]



posted on Oct, 1 2007 @ 09:42 AM
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reply to post by OBE1
 


I'm not trying to minimize the impact this has had on some individuals, just the impact that this could have on the economy at large.



posted on Oct, 1 2007 @ 10:20 AM
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There's a lot to worry about in banking, but ING isn't one of them.

Working for megacorp banks for ten years, there's a lot of stuff that goes on the public never sees (and would be very, very surprised to see).

Think 'chip' in the credit cards. Now think chip in your hand or forehead. There's your conspiracy.

The true danger in banking is having only one bank worldwide...and it looks like it's heading that way.



posted on Oct, 1 2007 @ 10:23 AM
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reply to post by saint4God
 


In order for that to happen, people's right to compete would have to be destroyed. All private monopolies are eventually destroyed, eventually someone comes up with a better business model.

Theoretically, a world government could create one bank run by them and outlaw all the others but I don't think citizens would stand for such an oppressive system very long.



posted on Oct, 1 2007 @ 10:29 AM
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I so hope you're right and probably correct in our lifetime, but there's a BIG push for globalization. With that comes global economics, common currency, etc. Currently the U.N. is kicking around the idea of an international court. One court for all countries. Next up, one bank for all countries. Look at the contenders - JP Morgan Chase, UBS, WorldBank, DeutchBank, Bank of America...they all get they're monetary bonuses when they gobble up smaller banks and merge.

'One world currency' is already in motion, aka The Euro. Ever wonder why the color of our money changed? Looks a bit more european, doesn't it? We're getting there, the race is on, but hopefully not something my kids will have to be a part of. Grandkids, not so sure.



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