Banning Banks

Actually they DID NOT ban banks, if the BANK has a real life license in the country it operate, LL allow it to operate in SL too.

Second Life has a perfectly good in-built banking system. Why anyone would want to put money into any other unofficial, unregulated L$ bank beats me.

Well, I am sorely disappointed with the service provided here.

http://www.shorttext.com/ckgth

lmao

I'll add $L 10k to that. Do I get a percentage of the program when it's acquired? Or a copy?

"BAN the thought police" not the ideal signature for someone against banning something!

Back in fall 2005 I think. Anshe was flamed by nearly everyone on the thread as people accused her of plotting to undermine Ginko for her nefarious ends.

Lot of people loved Ginko back then for some reason.

Prolly greed.

Course there were a lot of people who just loved the opportunity to flame Anshe and would use any excuse.

"provider": its all LL fault .....

ofcourse it is, Commen Sense has been declared dead

poor poor common sense.....i bet it was all that drinking what did it....

his steph mom Fate introduced him to SL, didn`t take long...

Here's the thread from 2005:

/130/7e/71981/1.html

I blame faulty genes. And BetaMax.

Looks like Anshe and Desmond called it well.

As well as yourself.
(I had to LOL at the "people love to hate Anshe" bit since I said the same tonight)

With this and the casino ban it may end up with LL having to admit that the Linden is a currency with intrinsic value. After all, we can buy and sell it, right? It's not illegal gambling if the Linden isn't real, banks wouldn't be dodgy if it was just spacebux. But if it's a "real" currency then you're into banking regulations and actual RL laws. Maybe this is an inevitability of the "metaverse", just like online casinos got banned in some places. It's either a ground-breaking simulated world with connections to RL or it's exempt from legalities. Not both, however much we might want that.

LL, please moderate this forum. Volunteers await.

1

Real banks would go bankrupt too if such a policy were to be applied. A bank CAN NOT have all money in cash, since how are they gonna pay interest then?
RL and SL banks work the same, the use the money on account for investments, to be able to pay interests.

So this LL bank policy is not a good thing, since it does not distinguish between trustworthy banks, and those that are not trustworthy (for example if they use Ponze systems).

No it's not. Since the LL policy does not distinguish between banks that trustworthy pay you the interest that you were promised and have investments that pay for that interest, and those that use Ponzi like schema that will get blow apart in the end, leaving many customers who can not be paid back.

No bank (wether RL or SL) can ever deal with a situation in which all money on all accounts has to be paid back. So in fact this policy will hurt banks and customers, not just the frauding banks.

Bingo! Whereas I support LL's policy on banks, it is their policy that has caused a run on the banks. Those banks who do have assets, will over time pay back their customers, those who don't have assets have been exposed but the idea that RL banking wouldn't be in chaos if such a policy was applied is absurd. This would destroy RL banking.

However, the banks weren't regulated (like gambling), it was too easy to defraud people and LL needed to act. There are plenty of other areas where people are ripped off and scammed and hopefully LL will deal with those areas accordingly.

SL "banks" were not insured by outside sources; this is one of the reasons that depositing your L$ was a foolish thing to do. All US banks and thrift institutions are insured by the FDIC. Here is a snippet from the FDIC's website:



If the FDIC ever decides to insure SL banks (haha), then and only then should SL residents deposit their L$ into those SL banks. Until then, SL Banks are nothing but a scam.

Real banks are insured by the FDIC. They don't NEED to have all their funds liquid. That's completely not the point of a bank.

*sighs* Did we have to raise the dead horse for beating again?

Really, think for a moment about this: Is there any sort of regulating entity in SL for banks, as there is in RL for banks? No.

Can Linden Labs regulate banks? Possibly, but it would put a bad strain on those resources that Linden Labs has to do so, not to mention put them in the path of potentially getting into serious trouble with RL laws and regulations down the road.

Should Linden Labs regulate SL banks? No. Why should they do this? There are perfectly good RL regulating entities that can handle this far better and with more experience than Linden Labs. Not to mention that this allows users to actually have a leg to stand on in a court of law if something should go 'south' and the bank commits fraud. They wouldn't if LL was the regulating entity.

Is LL banning all banks in SL? Again, no. They are only banning those that are not registered/licensed with an RL regulating entity. I've heard that at least two banks are doing the paperwork to become RL banks, which begs the question of why aren't the other SL banks doing it?

Is this going to hurt users? Yes, duh. People invested money in these so called banks.

Is this a bad decision on the part of Linden Labs? Yes. They should have done it a lot sooner, frankly and back on 06/06/06 when they opened the flood gates to the masses, if not sooner!

Do you think the FDIC would be able to pay out the insurance to pay back every single depositor? I don't think so. There would be people who would lose money.