posted on March 21, 2002 11:35:36 PM new
Here's something from PayPal's SEC form S1 filing that explains why they take so long to deal with problems...
"We use the terms "balance" and "account balance" to refer to funds that our customers hold until they decide to withdraw the
funds, transfer the funds to others through PayPal or invest the funds in the PayPal Money Market Reserve Fund. We pool
these customer funds and, as agent for our customers, we deposit the funds in bank accounts or invest the funds in
short-term investment grade securities. Beginning in October 2001, we plan to deposit all customer funds not transferred to
the PayPal Money Market Reserve Fund into bank accounts. We believe that, in handling customer funds, we act solely as
an agent and custodian and not as a depositary."
Take a look at that last sentence... a killer isn't it??
posted on March 22, 2002 10:46:07 AM new
is that better,paypal serves as custodian and agent and our money is in the bank?
but paypal would be the owner of that bank account.
i believe this is the same with brokerage firm,unless you invest in money market fund,else your money is with the other customers money in one big bank account and that bank account is in the name of your broker.
