NATION

NATION

Government shuts down
online bank NetBank

WASHINGTON — NetBank Inc., an online bank with $2.5 billion in assets, was shut down by the government Friday because of an excessive level of mortgage defaults.

It was the largest savings and loan failure since the tail end of the industry’s crisis more than 14 years ago. Federal regulators appointed the Federal Deposit Insurance Corp. as a receiver for Alpharetta, Ga.-based NetBank.

Customers with less than $100,000 deposited with NetBank will be protected by FDIC insurance.

Stockholders approve
A.G. Edwards sale

ST. LOUIS — A.G. Edwards Inc. stockholders on Friday approved a $6.8 billion plan to be acquired by Wachovia Corp. to form the nation’s second-largest retail brokerage firm.

A.G. Edwards, the St. Louis-based financial services holding company, said the deal is expected to close around Monday.

Charlotte, N.C.-based Wachovia, the nation’s fourth-largest bank, said May 31 it would buy A.G. Edwards for $6.8 billion in cash and stock to form the retail brokerage firm.

Associated Press