[ForSale-Swap] Paypal

[Robert Nickels]

Carl wrote:
> PayPal is not a bank and not regulated as such which allows them to 
> play free with your money and with absolutely no recourse.
>
>
Partially true, Carl - it depends where you live.

In the US, the Federal Deposit Insurance Corporation said it does not 
consider the company to be a bank or savings association because it does 
not accept deposits as defined by federal law, which requires 
institutions to have a banking charter.  But after Paypal started 
depositing customers funds in FDIC-insured bank accounts, the FDIC said 
the insurance protections--up to $100,000 per customer per bank--would 
extend to PayPal customers, even when PayPal deposited the funds for 
them.  So you do have some of the rights and protections of a bank in 
the US.

However, in Europe PayPal was been granted a banking license for the 
European Union by the Commission de Surveillance du Secteur Financier 
(CSSF) in Luxembourg, effective July 2, 2007.   All European accounts 
were moved and PayPal Europe is regulated by the Luxeubourg banking 
authorities and can do anything any other bank can do.

One has to think they've got the same thing in mind elsewhere.  Once 
they are a bank, they'll be able to provide loans, which may not be a 
real attractive business to get into just now...

73, Bob W9RAN