Bank/investment firm idea

I haven't read the entire thread on banking, but I just HAVE to put in my two cents before I lose sight of it (as it is 3 AM and i'm dog tired).

The bank I envision in SL would not really be a bank per se... more of an investment firm.

Consider these things:

1) You cannot just make money up in SL; it has to come from somewhere. That and interest rates are kinda hard to calculate, especially for potentially hundreds of accounts. Result: no savings/bank accouns.

2) Therefore, the bank needs to be more of a loan/venture capitalist group, with aims of making money for the bank, and, therefore, for its members.

My version of a bank would work on what I call the "110% principal." Basically, I (as the bank) will give you 100% of your funding requested. In return, you give me back 110% of the original investment.

So, if you needed $500, I would expect back $550 before a set time.

A way to prevent deliquent payments would be thus:

1) Set up the main Bank Group, composed of actual investors.

2) Set up a secondary group as the "holding company" of the bank.

3) A client comes up and requests xxx amount of dollars from the Bank. The Bank then transfers said money to the holding company, and the person joins the group. All things made for that project get deeded directly to the group (all tangible assets, which is why you would need a loan in the first place).

4) The holding company would keep track of money spent, and money received for payoff. When the payoff amount is reached, the holding company officer (the members of the Bank) would then transfer the tangible assets (prims, scripts, etc.) to the client.

This could further be simplified by setting up client/project "boxes" where the client would come up to it, type in some commands, and pay the "project box" an amount of money. When the amount of money required (in my example, 550 dollars), an IM is sent to the Bank officers, who then do the needed steps to get the resulting stuff back to the client.

Furthermore, the bank could set up profitable ventures this way, with minimal income loss.

This is very doable now, now that we can deed things to groups. Does anyone see any flaws in my system?

LF

And there would still be a risk of loss, presuming the investee's idea fails. Also, I presume there would be a need for a holding company per loan, which would be costly due to the $100 fee to start a group. Also, a lot of people would be reluctant to have their objects open to the bank person. (I would be too peranoid myself to have all my scripts open to an external source). But, perhaps I am missing something on how to make those elements works. I think it would be a great idea if the kinks could be worked out)

As a venture captalist, you have to take risks. Not all ideas are going to pan out, unfortunately.

The net result of an idea that doesn't produce fruit is that the creators of the idea are kinda blacklisted from any further funding.

As for trust, it's understandable.... perhaps make the script no-modify before sending it to the holding company?

I trust myself, and I know I'm not going to go around marauding stolen scripts... but that's just me

LF

LF, just for the record, I was not commenting that you were un-trustable. You have shown to be a very reliable member of society. Just in case you interpretted my comment as such.

no no, I didn't interpret as that.

I'm just saying, if someone DID make a bank, I'd want people that were universally trusted in the game. Darwin, James, maybe even (gasp ) me.

There's got to be a huge level of trust in this banking firm... not just anyone can run up and do it.

LF