NextCard Fires 90 Percent of Staff

Share this content:
After signing an agreement with the Federal Deposit Insurance Corp. earlier this month to transfer its credit card portfolio operations to the FDIC, NextCard disclosed in a Security and Exchange Commission filing yesterday that it had fired 546 employees, or 90 percent of its staff.


About 65 people remain at the company to work with the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency, the company said. Transferring the company's credit card portfolio to the FDIC likely would put NextCard out of business.


According to the SEC filing, NextCard will continue to provide certain administrative services for at least the next three months as part of its agreement with the FDIC.


No one from NextCard was available for comment.


The FDIC also is acting as receiver for NextCard's failed online bank, NextBank N.A. The agreement gives the FDIC uninterrupted access to NextCard's and NextBank's technology, which is necessary for the banking regulator to sell NextBank's credit card portfolio.


Banking regulators shut down NextBank in early February after they found the bank was "operating in an unsafe and unsound manner" and had substantially dissipated its assets.


NextBank also asked the Nasdaq Stock Market to delist its stock last week, saying it could not comply with the stock market's listing requirements. NextCard's shares last traded Feb. 7, closing down 5 cents at 14 cents. Nasdaq is expected to delist the company's stock on March 18.


In late 2001, NextCard tried to find a buyer for the bank and its holding company, but found no takers. In January, it notified the OCC that it could not prepare a Capital Restoration Plan and said that liquidating the bank's assets would not raise enough money to pay its obligations.


Loading links....
close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa Data has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa Data offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here