Is PayPal About to Go Bankrupt?
With the stock prices of both Credit Suisse and Deutsche Bank under pressure, many in the financial field are becoming concerned the world could be facing a renewed financial crisis. But this time around events could play out very differently. It might not even be banks that pose the greatest financial risk to consumers. It could be payment providers like PayPal.
The really big difference between 2007 and 2022 is that bank runs no longer look like the image above, they look like this:....
....MUCH MORE
Although the BBC's Robert Peston got the scoop, FT Alphaville bulldogged the story.
From the BBC:
21:03 GMT (22:03 UK)
Northern Rock gets bank bail outI just happened to be in the office the evening of the 13th and apparently one of the FT Alphaville staffers happened to be at their office at 23:22 British Summer Time!
It turned out the "staffer" un-bylined at the time, was the editor himself, Paul Murphy:
From FT Alphaville:
All Chauffeur Alert! Bank of England Court convenes
On Friday the 14th it was a run on the bank:
Northern Rock: Customers line up to withdraw fundsThe morning of Saturday the 15th:
Northern Rock (LON: NRK) Updates
When I read that The City's Stockbrokers and Fund Managers were queuing up to withdraw their deposits, well, it gets your attention....I was so tired I degenerated to New York Post style headlines:
Rock, Paper, ScissoredMerrill Lynch came out with a buy rec. and a price target of 913 pence. Alphaville commented "We like a ballsy call, here on FT Alphaville, but what's this?
What's a Rock Worth? Lon: NRK; This Could be AwkwardMore Post style headlines:
Panic on the streets of Britain: Northern rocked, City shockedOn Sunday it just got silly:
Northern Rock=Quote of the Day
...The disclosure of the Bank loan was not what we wanted,' he [Applegarth] said.
'The weight of coverage has been absolutely intense and, of course,
it has damaged our brand.'...
-From ThisIsMoneyBut, of course.
The media coverage has damaged the brand.
Somewhere along the way [it would have been September 15th, wouldn't it -ed] I just lost it:and posted:
Screw Northern Rock, It's Battle of Britain DayFollowed the next day by the story of the first Barings Bank failure in 1890 [just to cheer people up? -ed]
A RUN ON THE BANK.All in all an interesting few days.
And again, Ms Kaminska at The Daily Sceptic, October 9:
Is PayPal About to Go Bankrupt?
