SL Banks are Toast - Yee Haw!

http://blog.secondlife.com/2008/01/08/new-policy-regarding-in-world-banks/


Did anybody actually not see this coming?
(obligatory question)

...and the crowd rejoiced!!!

edit: /me doesn't remembering trying to joice before but I shall rejoice now.

This does not include SLX and Onrez vendors and such, does it? They're kinda like a atm...

I love those things o.o

As I read it, SLX isn't affected. They do not offer interest. I don't use OnRez, so I couldn't say.

I think this is a good move on LL's part. But I sure hope that the "banks" have got funds to cover ALL their depositors. I predict a grid-wide bank run.

Oh, this is wonderful news indeed! While I would never fall for them, I can imagine that to the new residents, they looked very attractive...I've always been concerned for them

Awesome, terrific, marvelous news!

I am really surprised... from reading this forum and others the Lindens do not seem to care about member issues, disputes, problems or quality of life issues.

"G"

Thats how I read it to.. but I'm expecting someone to AR one without knowing, a linden removing it because of how THEY interpret it, and this whole grid-wide uproar...

no because they aren`t banks, same as apez. onrez or any others

pure banks will be banned unless they`re official

Ah, the Mainland landscape is about to have a little less crap around.

if Linden`s don`t know these services and return those atm`s, they have no reason to stay employed as they have no clue

Judging by the various interpretations of the gambling ban, it will happen at least once it seems...

They look like ATMs.. you can put money in and take it out.. just no interest.. but.. who knws =/

Was really the only course they could take.

I'm kinda surprised it took them this long, really.

Although I do see this ruling as an excuse of a lot of current "banks" and "exchanges" to take the money and run...

In the long term its the best course.

It seemed clear that Legitimate, legal banks or investment funds which are regulated by their country to run; can submit the proper documentation to LL and then go into business.

I'm kinda amazed there are already folks complaining about this new policy decision on the blog, amounting it to censorship.

Well... not *that* amazed

I would argue that they should have done this years ago. But apart from the too little, too late argument - I think its probably a good move.

---And eventually the linden exchange for real money feature will go as well. because sooner or latter LL will have to file paperwork and registrations they won't want or be able to file.

Purchases will have to use real money for any transactions they expect to cash out in real world. The Linden will be for inworld only.

And this will be a good thing.

If the Linden is just play money, then gambling or "banks" or other fictional things would not require such real world registration.

So I guess "bank" will be removed from the search as well?

Grrr, some of the comments on the blog - how can anyone see this action as "censorship"?

I'm very against government telling us how we can and cannot live our lives. I disagreed with the gambling ban, but completely and totally understand why it was done.

But this does nothing but protect many MANY people who may not otherwise understand that in-world banks offer no guarantee of return on investment, or even, for that matter, that their initial investment will still be there.

I found it interesting to read that if a bank is certified, funded, whatever, that they can move in-world and exist.

This is great news. Perhaps after awhile this will build the credibility of the SL economy. I wonder if there will be any legitimate banks left after this who can submit the necessary licenses?

Well I dunno its not really too little too late except for the people who got burned.

LL has to be thinking long term growth, etc. When the grid reaches 100,000 concurrent there would have been nothing stopping another Ginko from rearing its ugly head.

Now at least there is.

I hope they give us plenty of notice on that one. That would be the end of SL, so I hope they can keep that from happening.

No, those do NOT offer an interest rate of any sort, nor do either of those call themselves banks or investment firms I'd be very unhappy if this effected either of those!

Otherwise, I'm tickled with this.

I'm also glad to see that they didn't close the door on legitimate banks that might want to move in. Though why any would, I don't know.

Just the people who have money invested in these banks, and those who run them.

The people who have money invested are now at risk. In the very least they will lose all the interest they thought they were gonna get. And many will likely loose their entire investment.

The banks themselves only make out in the short term, in that many will default now and keep the money.

Long term they cant get more money from future suckers .. I mean investors.

/me applauds...

About time too. And yes there will be one helluva run on the remaining 'banks' and a flurry of horror stories before the hammer comes down on the 22nd. Interestingly WSE shut down all their ATM's a few days ago claiming that they needed 30 days to upgrade their services. Looks to me more like someone at WSE got some insider info from LL and shut their ATM's down in anticipation of the coming run.

Having read the official LL blog on the matter it strikes me as typical CYA smokescreen.

/me wonders if we'll see a 'lot' of land coming up for sale.

It's going to depend on whether or not the "banks" have invested depositor funds in SL land.
Even if they have, there's still no guarantee that the depositors would see any of the sale proceeds.


Blog: "We ask that between now and then, those who operate these “banks” settle up on any promises they have made to other Residents and, of course, honor valid withdrawals. After that date, we may sanction those who continue to offer these services with suspension, termination of accounts, and loss of land."

It doesn't specifically say what might happen if depositors don't get back their money by January 22nd.
The policy seems geared to removing ATMs rather than doing anything about funds already in the 'banks'.

It could be argued that 'banks' that have not refunded depositors "continue to offer these services" in that they continue to hold the funds on the original promise of paying interest.

Perhaps they should change the name from ATM to something else?

They aren't really ATMs since it is basically just store credit.

But what about my Ginko account?



Mari