Losing Half a Million on NetBank's Fall

Depositors with uninsured balances are first in line when a failed bank's assets are liquidated. Any money they recover on their uninsured deposit is called a "dividend" by the Federal Deposit Insurance Corp. Last Friday, the FDIC immediately paid NetBank's depositors a 50% dividend on uninsured balances, anticipating the proceeds from the sale of NetBank's assets.

Now faced with losing about $500,000, Coulthrust contacted the FDIC's claims department. The agent he spoke to was sympathetic, but was unable to comment on the likelihood of any further recovery of his company's money.

Coulthrust doesn't think he has any further recourse. When he asked the FDIC claims agent if there were any bridge loans available for business depositors threatened by such large losses, the answer was no.

"A lot of that money was an operating account, so we are still sorting out things to figure out what we're going to do," he says. "Our business is sound and we will survive this because we are awesome! But it is a lot of money."

David Barr, assistant director of the FDIC's Department of Public Affairs, says the FDIC is working to sell NetBank's remaining assets. With $1.1 billion in assets remaining to be sold, he expects further dividend payments to NetBank's uninsured depositors.