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  #31  
Old 01-28-2007, 09:19 AM
phish phish is offline
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Default Re: Complaining to British regulators about Neteller

If it's true that Neteller keeps its deposits in segregated trust accounts, then even a run on the bank should not lead to collapse.

The reason traditional runs lead to collapse is because depositors' moneys are lent out for mortgages, etc. The bank itself only keeps 10% or so of all deposits as liquid assets. When that 10% is gone, the bank can't call all its loans in immediately, and hence the collapse.

Unless Neteller too is invested heavily in non-liquid assets, this should not be a concern. If all deposits are held in money market funds or the like, then 100% of the money is there for withdrawal.
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  #32  
Old 01-28-2007, 09:25 AM
davmcg davmcg is offline
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Default Re: Complaining to British regulators about Neteller

I really don't know why you are making up this stuff.

Neteller PLC is in the Isle of Man and could be in Venezuala as far as the UK govt is concerned. In fact if it went down and Neteller UK customers were safeguarded, they would use the opportunity to tell everyone how fantastic UK regulation is.

As long as Neteller UK continues to operate normally and the plight of Neteller PLC does not change this, the FSA has no powers to do anything.
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  #33  
Old 01-28-2007, 09:40 AM
Richas Richas is offline
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Default Re: Complaining to British regulators about Neteller

This link is to the Neteller Investors site. The presentation on their latest interim results (Sep 06) contains some interesting information for anyone concerned about where their cash is and the scale of the problem

http://tinyurl.com/yvrecr

Skipping over the revenues and business plan stuff the interesting bits are about the total deposits and the cash position for the company.

Slide 13 is the most important as it shows where the cash is - EU Customer money in trust $48.1m, owing to customers merchants $220.1m (in trust accounts), $28.8m company cash (restricted) in trust accounts - this is the money put into trust to cover cash in transfer and a few other company bits and bobs where the money is there but basically spent ie share options....then there is the company cash of $135.9m which is not held in trust.

Most of this money is invested not really cash it would take time to access it. On average per day Neteller deals with about $4.7m of transfers plus their normal business transactions the readily accessible cash would be scaled to meet this demand. They can't access the EU money to meet US withdrawals but the strong cash position of the company roughly equal to or just below US customers deposits should be reassuring especially as the US customers money is there - in trust accounts.

Looks to me like the money is there, they have logistics problems and issues accessing the cash immediately but any company used to dealing with $5m a day was suddenly swamped with requests for up to $200m and a set of US banks unwilling to deal with them at all wold need time to pay out and struggle to answer the phones/complaints.

$200m is chump change to the city (they just paid out $38bn in bonuses to their staff for 2006), Neteller has the cash they just need the City to help them access it quickly via loans and guarantees from others. In short I think everyone will get their cash from Neteller.

PS Dav the UK regulators would not let the US customers get shafted to protect EU customers it would destroy the City of London if non EU customers felt they were not protected by our regulation - you are pointing to a normal company legal structure for regulatory purposes not some conspiracy to leave out US citizens from protection.
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  #34  
Old 01-28-2007, 10:56 AM
davmcg davmcg is offline
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Default Re: Complaining to British regulators about Neteller

[ QUOTE ]


PS Dav the UK regulators would not let the US customers get shafted to protect EU customers it would destroy the City of London if non EU customers felt they were not protected by our regulation - you are pointing to a normal company legal structure for regulatory purposes not some conspiracy to leave out US citizens from protection.

[/ QUOTE ]

US customers of Neteller are not protected by UK legislation. Read the Financial Services Act. How in gods name you can think that a US customer of an Isle of Man company would be, I really can't fathom at all.
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  #35  
Old 01-28-2007, 12:56 PM
Richas Richas is offline
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Default Re: Complaining to British regulators about Neteller

[ QUOTE ]
[ QUOTE ]


PS Dav the UK regulators would not let the US customers get shafted to protect EU customers it would destroy the City of London if non EU customers felt they were not protected by our regulation - you are pointing to a normal company legal structure for regulatory purposes not some conspiracy to leave out US citizens from protection.

[/ QUOTE ]

US customers of Neteller are not protected by UK legislation. Read the Financial Services Act. How in gods name you can think that a US customer of an Isle of Man company would be, I really can't fathom at all.

[/ QUOTE ]

Because I am talking about the continuing operation of the group of companies not an individual consumers ability to complain via the ombudsman which is all you are talking about. Even then any US consumer adversely treated compared to an EU customer would have recourse to the courts.

The framework of legislation that the company operates within protects all the company's customers.

In terms of the criminal law When you deal with a company subject to UK law they need to obey the law, they can't just go oh yeah he's from the US/Zimbabwe/Iraq/Iran/Timbuktu so I can nick his money - it would still be illegal wherever you were from.
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