Good guess CB, I'm not a lawyer. Whether PayPal is a bank in the legal sense or not will be figured out by governments. Until it is legally considered a bank, it's just another business, with unsecured creditors operating in a commercial environment. So for people to call it a bank, when it isn't is silly and legally irrelevant.
If PayPal gets a tarnished reputation because of civil fraud, identity theft or any other messes, whether their fault or not, then confidence will evaporate and it will be game over for them. They will be doing all they can to button it all down tight to avoid any shenanigans, worries, losses and so on. Sure, they'll have glitches [they'd better not have many or too big].
I'm well aware that I am an unsecured creditor. I will NOT be giving them big lumps of money [such as the financial institution which holds my shares, money etc has] until they are very solid, glitch-free, publish powerful balance sheets, audited by 3 companies etc etc.
Just as with any other business, I can sue them, get judgement for money owing etc. I don't see any special problems.
Mqurice |
