Georgia

NetBank Folds on Subprime Trouble: Biggest Bank Failure Since S&L Crisis 

In what regulators were quick to portray as an “isolated” incident, Alpharetta, Ga.-based thrift NetBank Inc. was closed by the OTS today. The Federal Deposit Insurance Corp. was named as the receiver for the bank’s $2.5 billion in assets. The Net Bank failure is the largest since 1993, and is the first bank failure tied to trouble in the subprime market. The thrift had high exposure to the subprime mortgage market and could not sell its nonperforming units.