Losing Half a Million on NetBank's Fall
The most interesting reader feedback from Monday's story about the failure of NetBank Inc. (formerly a unit of NetBank (NTBK)) came from Chris Coulthrust, president of Applied Cognetics in Brooklyn, N.Y.
Applied Cognetics had a million dollars in uninsured NetBank deposits. It looks like he's out about half that amount.
"I was one of NetBank's first customers back in 1998," Coulthrust says. "I moved to them after being turned away from three different banks who did not understand our business and refused to open a business account for me."
Applied Cognetics is a software developer, specializing in providing its online marketing and lead-generation platforms to Internet marketers and the consumer-finance industry. The company also provides automated underwriting engines for lenders.Later, as his business grew, Coulthrust opened several business accounts. Only recently did Applied Cognetics keep larger uninsured balances with NetBank, so he had never considered the risk of having uninsured deposits. "I found out about NetBank's failure last Friday when I logged into the Web site to check the status of incoming wires," Coulthrust says. After seeing the announcement of the bank failure and the transfer of accounts to ING Direct Bank (a unit of ING Group (ING)), Coulthrust immediately called several customers and asked them to hold back their wires.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV