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Impreza's Journal: Entry #2 - Bank Drama


Impreza
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I'd like to post an update on everything now that my mind is a little more clear.

I'd like to make it very clear that I don't have anything against Dusty personally. I just don't think our goals or management styles aligned. I was deeply frustrated with him for not maintaining a strict adherence to the charter, and he was frustrated with me for not allowing him to do things as efficiently has he wanted when I believed it was not in accordance with the rules we agreed to govern ourselves by. So, some of the things I said in the OP were fueled by anger, and I am sorry for putting it like that.

I am also deeply sorry to all of our shareholders who are fretting right now. Dusty is currently holding a vote among our shareholders whether to liquidate or continue. I am hoping that liquidation is the decided option, and that it can be done successfully, even if it takes a couple months. If you are a shareholder and you are reading this, please vote in favor of liquidating. It is the only way anything will be recovered in my opinion. Admittedly, I am doubtful that all of our clients will successfully repay their loans, as a result of the dire state of the bank.
Yes, we also considered involving a third party to buy our debts and assets, but Dusty didn't think it was a good option and that was it.

In other news, I have decided that I will be taking a break from banking for a while. It could be anywhere from a month to a year or two. As long as it takes for everyone to forget about this mess. 

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4 hours ago, The Mad Titan said:

This why they’re a scam. Another popular tactic I’ve seen is take investor’s money for shares and the founder giving themselves a bunch of shares without any money being put down. Of course when it’s liquidated a month later they still pay themselves out for their shares. 

cough That's basically what the thread is about if you think about it cough

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5 hours ago, Impreza said:

I'd like to post an update on everything now that my mind is a little more clear.

I'd like to make it very clear that I don't have anything against Dusty personally. I just don't think our goals or management styles aligned. I was deeply frustrated with him for not maintaining a strict adherence to the charter, and he was frustrated with me for not allowing him to do things as efficiently has he wanted when I believed it was not in accordance with the rules we agreed to govern ourselves by. So, some of the things I said in the OP were fueled by anger, and I am sorry for putting it like that.

I am also deeply sorry to all of our shareholders who are fretting right now. Dusty is currently holding a vote among our shareholders whether to liquidate or continue. I am hoping that liquidation is the decided option, and that it can be done successfully, even if it takes a couple months. If you are a shareholder and you are reading this, please vote in favor of liquidating. It is the only way anything will be recovered in my opinion. Admittedly, I am doubtful that all of our clients will successfully repay their loans, as a result of the dire state of the bank.
Yes, we also considered involving a third party to buy our debts and assets, but Dusty didn't think it was a good option and that was it.

In other news, I have decided that I will be taking a break from banking for a while. It could be anywhere from a month to a year or two. As long as it takes for everyone to forget about this mess. 

Are you actually kidding though? If he's willing to ignore the charter and keep your assets, then what possible incentive does he have to prevent him from ignoring liquidation procedures? What recourse could you possibly have? You can roll him, perhaps, or even his whole alliance, but when it comes right down to it that doesn't actually get your money back: it just sets you both back further.

Now, that scenario would certainly be better than rolling over and letting him keep his gains, but it's still not a successful liquidation.

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1 hour ago, Sir Scarfalot said:

Are you actually kidding though? If he's willing to ignore the charter and keep your assets, then what possible incentive does he have to prevent him from ignoring liquidation procedures? What recourse could you possibly have? You can roll him, perhaps, or even his whole alliance, but when it comes right down to it that doesn't actually get your money back: it just sets you both back further.

Now, that scenario would certainly be better than rolling over and letting him keep his gains, but it's still not a successful liquidation.

Dusty hasn't kept the former directors' assets. He did ignore the charter by "firing" them apparently, but not for seizing their assets. And there is no established "liquidation procedure" for him to ignore. He held a shareholder vote to determine whether or not to liquidate, and It seems he's given sphinx control of the bank after they voted to liquidate. There are lots of things to criticise about this debacle, but the handling of the actual dissolution isn't one of them imo.

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25 minutes ago, Vack said:

Dusty hasn't kept the former directors' assets. He did ignore the charter by "firing" them apparently, but not for seizing their assets. And there is no established "liquidation procedure" for him to ignore. He held a shareholder vote to determine whether or not to liquidate, and It seems he's given sphinx control of the bank after they voted to liquidate. There are lots of things to criticise about this debacle, but the handling of the actual dissolution isn't one of them imo.

If he's actually put money into a trust that will get it into pockets that aren't his, then I officially don't know what anyone is talking about anymore :v

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Evaluation's pretty simple, but it takes initiative before selling shares. 

First, you lend money to create assets on the balance sheet. Then, you divide the asset worth by however many shares you want to offer.

The problem is people invest in banks before loans are made. They speculate purely on the character of the account executives... which isn't necessarily bad, but it's gutsy.

Typically, you invest after a track record of lending has been established both to know you can trust the account executives as well as to know how fast they rollover their cash to get an estimate on rate of growth.

Also, if there are no liabilities in a bank, that should be a sign of concern.

Banks should have two liabilities: salary for account executives, and enforcement contracts with some alliance in case loans aren't repaid.

Obviously, you want these numbers as small as possible so equity's as large as possible, but they need to be reasonably large to be convinced that the bank is actually doing business. If the executives aren't paid enough, then you should be concerned that there's a scam. If enforcement contracts aren't large enough, then you should be concerned that loans aren't guaranteed.

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9 hours ago, Sir Scarfalot said:

If he's actually put money into a trust that will get it into pockets that aren't his, then I officially don't know what anyone is talking about anymore :v

image.thumb.png.53182c574074e045d9f3101f3670e54e.png

image.thumb.png.3f2255700cf3ca0ec0e61e3f093972d0.png

Seems like Sphinx has it under control.

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And this is why I personally don’t do anything with the banks in this game, no matter if they’re trust worthy players or not.

Also, how exactly do you folks plan to enforce getting money back if the borrowers know the bank is liquidating?

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21 minutes ago, Buorhann said:

And this is why I personally don’t do anything with the banks in this game, no matter if they’re trust worthy players or not.

Also, how exactly do you folks plan to enforce getting money back if the borrowers know the bank is liquidating?

The affected and collecting parties include government from numerous major alliances across spheres as well as a mercenary organization that caters specifically to banks and has heavy BK involvement, as does do the affected parties which include BK members and government.

Also considering that Manticore mostly loaned to smaller alliances and nations, i think they can figure out a way to force it out.

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30 minutes ago, Akuryo said:

The affected and collecting parties include government from numerous major alliances across spheres as well as a mercenary organization that caters specifically to banks and has heavy BK involvement, as does do the affected parties which include BK members and government.

Also considering that Manticore mostly loaned to smaller alliances and nations, i think they can figure out a way to force it out.

Lol.

If I didn’t care about my rep or relations with the players running some of these banks, I’d welcome the challenge.

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3 minutes ago, Buorhann said:

Lol.

If I didn’t care about my rep or relations with the players running some of these banks, I’d welcome the challenge.

I'd actually like to see bank wars.

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2 hours ago, Augustus0815 said:

What are those mercenary groups called? 

Syndisphere protectorates :P

But there's others, independent and otherwise.

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Bankers talk with each other. If you don't pay off a loan once, it's unlikely another banker will lend you cash in the future. Not paying a loan back will probably ruin your reputation among alliances too.

This is also why bankers diversify their holdings instead of lending too much to a single client. It sucks getting ripped off, but you can minimize your exposure.

3 hours ago, Buorhann said:

And this is why I personally don’t do anything with the banks in this game, no matter if they’re trust worthy players or not.

Also, how exactly do you folks plan to enforce getting money back if the borrowers know the bank is liquidating?

You should open a stock exchange instead then where you're the intermediary between buyers and sellers of shares. lol

 

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