Post Ban: Status of banks and other financial firms in SL (Regarding Solvency)

Hello everyone,

As most of you know, the process of offering interest or any other form of “return” to any other avatar in SL has been banned starting on the 21st of Jan. I strongly feel that this includes banks, funds, investment groups AND stock markets as all of them exist because depositors believe they will receive a “return” for the risk they have taken in the form of interest (banks) or dividends and stock value growth (stock markets).

My question is: Which banks, stock markets, funds, etc. have been paying their depositors back and which have not? I’d like to hear the status of which virtual financial projects are actually living up to their obligations. As LL posted in their blog, they will work with anyone who wishes to file a legal suit against any SL virtual finance firm which does not live up to their obligation to pay back their depositors. So, which of these firms have their ATMs up and running with no withdraw limit, have their ATMs up but with withdraw limits, have their ATMs off and which have simply vanished since the ban had been mentioned in the official LL blog?

Although this ban may stink for some, at least we will now find out who the true banks and investment projects were in SL and which were Ponzi Schemes or mismanaged fly by night “banks” being run by kids in their parent’s basement.

My guess is NONE of them will even be able to cover all the principle deposited by their account holders.

Let alone the Interest.

they`re all banned without legal backing that they can support these astronomical returns

no point in discussing as non will stay...

His question was which banks are paying their depositors back. I'd like to know this too.

I'm not worried about which will stay. What I'm asking is: Now that the finance firms have been banned, which are actively paying everyone back and which are not?

still no point in discussing it as it`s against the naming names policy as it will turn out with good and negative flame fest

How about this question: Anybody get any money out of their bank since the announcement?

/me giggles and gets out the popcorn

I have a few thousand L in a few different banks. So far I've only seen one bank with their ATMs still open with no withdraw limit. It was named SL Bank. I just withdrew 50k today with no problems. The other banks I use are shut down or have a withdraw limit of 5k per day per avatar.

Edit: I should mention that SL Bank was one of the few banks (only bank?) that offered a lower interest rate than the others and disclosed their full identities and real world addresses. And the money seems to be there! Go figure. ;P

That is awesome to hear. Congrats on your successful withdrawal.

Yes. I had a couple of hundred in SLBank , I got it out the other day. They are stating they have the funds to cover all deposits.

Bumped to see if SL Bank is the only SL bank acting like a bank in SL. Anyone else getting their money out of another bank besides SL Bank?

It will be interesting to see what happens to the WSE.

Although actual trading of stocks is performed outside of the SL platform, payment in is achieved via a terminal inside the WSE Island, and perhaps other SL locations.

The WSE has however created its own virtual currency (WICS) that can also be used externally although I am not sure how fungible or liquid they may be. On that basis, the WSE may be able to sidestep this ban by using them solely as a trading currency. However, by converting them back into Linden dollars they may fall foul of the speculation/investment Linden rules.

It is possible that the WSE may be able to apply to the Australian financial authorities to be authorised as a market maker. If that was successful, they could then qualify to continue to trade within SL, under the Linden exemption for qualified financial professionals.

Linden Labs may decide that the CEO's of the individual companies listing on the WSE are in breech of the speculation rules by permitting their shares to be traded, that would be a show stopper regardless of whatever the WSE does.

Finally Linden Labs may use their "God" powers and either permit the WSE to continue to trade OR ban it. On that point it was a matter of record historically that Anshe Chung has a stake in the WSE business

I think these options sums it all up

Strange question really as RL banks would be up the proverbial creek without a paddle if they had to allow everyone to withdraw all their funds within a fortnight.

Some banks have been bled dry, it takes time to liquify assets. Those without assets are the one's we'll hear the most horror stories about.

Raymond, you know the smart-alec nay-sayers have to get their useless, ill-informed jabs in before any REAL knowledgeable information can be given.

Here's a link about SL Capital Exchange from their affiliate, SL Reports: http://sl-virtual-world-news.com/index.php/200801111412/News/Business/JT-Financial-Update-for-01/11/08.html They are having liquidity issues which limit withdrawals, but I'm sure nay-sayers will just jump on that. More power to them; I'm sure it makes them feel better about their own low self-esteem to bash on others.

Despite that, the fact remains that they are meeting their obligations over time. Pay outs are being made, and will continue to be made even after interest payments stop on the 22nd.

Personally, I have successfully withdrawn all but $L21 of my money from the Capital Exchange. Whoo-hoo, money that sits in the top right of my screen and does nothing. Yippie-freekin-doo. So glad people saved me from my own intelligent, conservative investments.

On a related note, I think all us who have had our particular hobby yanked out from under us could use a laugh (and a bit of a scare for you self-righteous goobers.) Hide your AV penii and vaginas, Xcite attachments are so yesterday, and Neva's naughties is on alert:

I think your reading of this thread (and others) is colored by your mood over this issue.

There really weren't any Jabs in this thread until yours.


You may find the rest of us uniformed or whatever, but people were taking this thread pretty seriously. (except the giggle comment by Alicia)

Its easy to project personal slants into what you read on the net. In my opinion that is what you have done here.

My partner put some money in a bank a while back "just to see"... They have paid him back and the interest, SL Capital Exchange.

Colette, you're exactly right, it is colored by my mood over the issue. Take away something you enjoy and see if it doesn't make you a little cranky as well. SL Banking's not being taken away because it was malicious in and of itself; It's being taken away because people made poor use of their lindens.

There weren't any Jabs in the thread until mine. There also was no genuine, verified information (only guesses and sarcasm) in the first 8 posts. Sorry that my frustration colors my posts, but please see my first paragraph.

The reason I used the phrase "ill-informed" is because I really think people are posting out-of-hand with no research to back up their statements. Can you name 5 SL banks? Much less which ones are still honoring their dividends and interest payments? Can you name 5 that are not? Tell you what, give me the website for any 3 SL banks or Stock Exchanges.

I may be projecting a personal slant, I don't dispute that one bit. But if you are posting in the RESIDENT ANSWERS forum, please for the sweet love of never having done it before, post an answer...not a guess, not an opinion, and not a unsubstantiated commentary. One individually verifiable answer is all I ask.

Otherwise, drop the club and leave the horse to die.

There was no sarcasm either (other than the giggle) there were also people who posted personal experience. Does that not count as constructive?

You are seeing threads through dark colored glasses.

You may not like how I post -- you made that painfully clear in your apology that wasn't an actual apology, but surely that doesn't apply to everyone in this thread.

A good many people should be able to get Money back (Subject of course tho the "Bank's" Withdrawl limits) in the First few days after this ban, this money will be made up of the cash deposits of the Very Last people to get in on the pyramid. When this money runs out, there will be No More Forthcoming, and the bankers will simply vanish. When the idea was first proposed in these Forums a few years ago, of Starting a bank, i asked who would be Fool enough to hand Over thier Lindens to an Unsecured "Bank" without a guarantee of any Kind or even being able to See the bankers, or contact them in any Real way at all?

Apart from the Sheer Volume, composing a list Now should be relatively Simple.

Angel.

This was what I was guessing at.

Basically unless the banks only investments are something TOTALLY Liquid like Mainland. AND the price goes up consistently to match promised interest; theres no mathematical way to cover all of the deposits and interest.

Since many of the investments surely go down near term, or are not totally liquid, It will be tough to even cover the principle of all the depositors.

Especially if the bank intends on having any profit over the course of the enterprise.

I wasn't slamming SL banks, I was guessing at the Logic behind the situation.

For however uninformed I may appear to be I have studied some economics.

Lindsay Trust aka L&L is replacing their ATM's on Sunday for depositors to start withdrawing(they had to pull the ATM's the day of the LL announcement as clients freaking out wiped out the ATM owners wallet) . Tho, it will be a limited daily withdrawal as they are liquidating assets. They are also filing to be a legal trust in their home state in RL to continue 'banking' in SL.

There are a FEW of the SL banks and investment firms that are already state licensed brokers/firms in RL. So they just need to file the paperwork with LL.


Edit: Also want to add they are also paying interest up to the ban date till they are legal with LL. The bank owners have also been putting their own money in to help in the situation too.

That changes the math some - If they are willing to take a loss, they can pay people back of course.

Indeed, but then the banks owns what ever assets that they are selling to themselves.

Assuming those assets are worth anything.

That was part of Ginko's problem wasn't it? it was invested in OTHER SL "financial" companies.