Anorak News | Credit Crunch: NetBank’s Poetic Justice

Credit Crunch: NetBank’s Poetic Justice

by | 2nd, October 2007

SO who are the real losers from the sub prime mortgage implosion and the consequent credit crunch?

Well, some good news I think from the USA. At least some of the losers have been people who should have known better and also who no one’s going to lose much sleep over.

As Felix Salmon points out, NetBank has just gone bust. Deposit insurance in the US covers only the first $100,000, so anyone with more than that will have to wait until the whole thing is closed down, the equipment down to the last mousepad sold off and all the debts paid: and then we’ll see if there’s anything left. But who was it that had a large deposit in said bank?

So Colthrust started a subprime lender, sold it, and then used the proceeds to start a company finding leads for other subprime lenders. He also put all his money in NetBank, which promptly went belly-up in the subprime meltdown. There’s some kind of poetic justice there, I think.

Couldn’t happen to a nicer group of people, don’t you think?

Posted: 2nd, October 2007 | In: Money Comments (2) | TrackBack | Permalink