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Market Street remains in limbo

A potential sale falls through, but 590 workers still have jobs, an official says.

By HELEN HUNTLEY, Times Staff Writer
Published October 4, 2007

Market Street Mortgage "will wind down operations effective immediately," according to a memo the new president of the Clearwater company sent employees Wednesday.

Daniel Bell assumed presidency of the company last week after regulators shut down its troubled parent NetBank. He told employees a retention program had been developed and that those who were qualified for it would be notified. Employees were told to remove their personal belongings but to return to work today.

Though confirming Bell's memo, an FDIC spokesman said Wednesday afternoon that Market Street is continuing to operate and that all 590 employees have their jobs.

Market Street, one of the largest mortgage originators in the Tampa Bay area, was left in a lurch last week when regulators seized NetBank, citing an excessive level of mortgage defaults and put the FDIC in charge.

A potential buyer for Market Street backed out of negotiations Tuesday, prompting Bell's memo. However, FDIC spokesman Rickey McCullough said the agency is pursuing other prospective buyers.

"Market Street is still open and is still functioning," he said. "The FDIC is working to maximize the value of that institution. We're continuing to attempt to sell it in its entirety."

The collapse of NetBank, which had $2.5-billion in assets, was the largest savings and loan failure in more than a decade.

[Last modified October 3, 2007, 23:06:35]