Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : NextCard, Inc. (NXCD) -- Ignore unavailable to you. Want to Upgrade?

To: The Osprey who wrote (167)	2/8/2002 10:07:39 AM
From: dkgross	Respond to of 192

well...MY NextCard credit card sure does work :>) dg

To: The Osprey who wrote (167)	2/10/2002 3:39:33 PM
From: Buckey	Respond to of 192

some good news thedeal.com FDIC taps Bank One to sell NextBank by David Weidner Posted 06:00 PM EST, Feb-8-2002 Federal regulators have hired Bank One Corp. to value and advise them on the sale of NextBank NA, the banking subsidiary of NextCard Inc., a government spokesman said Feb. 8. The decision to hire Chicago-based Bank One comes as a blow to the San Francisco-based company and its adviser, Goldman, Sachs & Co. It follows the Office of the Comptroller of the Currency's (OCC) decision late Feb. 7 to seize control of NextBank. The OCC closed the business and appointed the Federal Deposit Insurance Corp. as receiver. OCC said $300 million in capital the bank put aside to fund the business had been dissipated by credit losses. “[We] found that the bank's risk management policies and procedures were inadequate and the bank's assets were of lower credit quality than initially projected in the bank's business plan,” the OCC said in a statement. The move comes after Goldman failed to find a buyer for NextBank, which offers credit cards via the Internet. “There is a strong possibility of a sale,” said FDIC spokesman David Barr. “We'd like to have this resolved as soon as possible.” Bank One, Citigroup Inc. and MBNA Corp. have been mentioned in the past as potential bidders. When Goldman began to auction the company in November, estimates of the company's value ranged up to $300 million. But its market capitalization had fallen to $7.5 million in recent trading on the Nasdaq. Trading in the stock was halted Feb. 8. A government source said that the FDIC is looking to sell NextBank, with its $700 million credit card portfolio. The bank had $550 million in deposits at the end of 2001, according to the OCC. The demise of NextCard did not dampen investor enthusiasm for another credit card issuer on the block. Shares of San Francisco-based Providian Financial Corp. rose Friday on an analyst upgrade. Providian closed at $4.16, up 70 cents, or 30%, on the Nasdaq. Providian, which is being advised by Goldman and Salomon Smith Barney, recently sold its $8.2 billion “platinum” credit card portfolio to J.P. Morgan Chase & Co. The sale closed last week and is expected to add $300 million in capital to Providian in the first quarter. Despite a fourth-quarter loss of $481.2 million, Providian reported net income of $39 million for 2001.