US pure play G&L Bank has ceased operations, citing economic conditions and the challenges of generating income as a stand-alone Internet bank.
The bank was created specifically to service the gay and lesbian community in the United States. G&L joins Wingspan Bank, Compubank, USABancshares, and Security First Network Bank among the long list of pure play banks who have folded in the past year, leaving a small number of online operators to pursue an Internet only model.
G&L Bank's dissolution has been approved by the regulatory agencies. All customer deposits (up to $100,000 per account) remain insured by the FDIC's Savings Association Insurance Fund.