What Happens If...

I just got a check from PokerStars (can't do echeck withdrawals) and noticed it was from Washington Mutual. If you are in the US and have noticed what happened with IndyMac bank what would happen if WaMu went down the same way? Do you think a good portion of Stars' funds would be lost, thus hurting our chance of getting withdrawals? Was just curious because I have heard that WaMu and Wachovia are two big banks in trouble of going under. Def. not panicking or anything, but hopefully Stars has funds spread throughout many banks. (This probably only applies to US people anyways)

money put in a savings account is insured by the federal government i think

Stars doesn't have actual funds in accounts with said banks.


They just use a third party processor to provide checks. I've gotten checks from like 3-4 different banks/physical locations. It's through different companies, not directly from stars.


Stars has all their money in the Bank of Scottland (or something like that, says it on their site).... no need to worry.

Stars doesnt really have our money stored safely in an account, the money is being handled as a bank would so lets say tomorrow every player withdraw all their funds obviously stars wouldnt be able to cover it.

a lot of the money in pokerstars account are being invested...

thats also a huge portion of poker site's income

ok all that makes sense. thanks

On July 22 2008 09:50 Baal wrote: Stars doesnt really have our money stored safely in an account, the money is being handled as a bank would so lets say tomorrow every player withdraw all their funds obviously stars wouldnt be able to cover it.

iirc Stars claims to be a site that doesn't operate like this, although most sites do

On July 22 2008 10:13 skwigggg wrote: iirc Stars claims to be a site that doesn't operate like this, although most sites do

2nded.

I was lead to believe (by stars, says it right on their site) that they don't invest their player's funds, and that each account is a separate account.



Now, I dont know/ too lazy to investigate if this is true or not.... But apparently, all player funds are 100% liquid.

# Is my PokerStars account balance used for your operational expenses or is it kept in a separate account?

# PokerStars is proud to announce that, under new banking arrangements, an amount covering Players' account balances is held in segregated accounts, not used for any operational expenses. These segregated accounts are managed by one of Europe's leading financial services groups. The arrangements ensure that PokerStars can at all times fulfill its obligations towards Players, and will provide further reassurance that Players' funds are always secure with PokerStars.

http://www.pokerstars.com/poker/room/faq/

On July 22 2008 09:39 geometryb wrote: money put in a savings account is insured by the federal government i think

only up to 10k afaik

"Money covering player's balances is held in segregated accounts managed by the Royal Bank of Scotland, ensuring that PokerStars can fulfill its obligations to players at all times." (for pokerstars). so yeah ofcourse all money you hold in accounts is being invested by banks etc but pokerstars is not acting as its own bank or anything. and its laughable to think that if everyone on stars cashed out, royal bank of scotland could't cover it at once. baal dont present your speculations as fact

On July 22 2008 11:00 Fraser wrote: Show nested quote + On July 22 2008 09:39 geometryb wrote: money put in a savings account is insured by the federal government i think only up to 10k afaik

FDIC insures up to $100k

To think how much interest income PS earns on all of our balances. Anyone care to throw out a guess how much the combined balance of all player accounts on PS is? I'll throw out a guess of 200 million.

On July 22 2008 11:31 matdon460 wrote: Show nested quote + On July 22 2008 11:00 Fraser wrote:   On July 22 2008 09:39 geometryb wrote: money put in a savings account is insured by the federal government i think only up to 10k afaik FDIC insures up to $100k

it is 100k, but if there was ever a bankrun of the scale of the Great Depression, then most people wouldn't get anything. really the FDIC is more of a peace of mind thing, but if the shit really hit the fan then people would be out of most all their money.

On July 22 2008 11:06 Ket wrote: "Money covering player's balances is held in segregated accounts managed by the Royal Bank of Scotland, ensuring that PokerStars can fulfill its obligations to players at all times." (for pokerstars). so yeah ofcourse all money you hold in accounts is being invested by banks etc but pokerstars is not acting as its own bank or anything. and its laughable to think that if everyone on stars cashed out, royal bank of scotland could't cover it at once. baal dont present your speculations as fact

Well it would be very weird for stars to pass on such a huge profit potential.... for example.

Theres a VolksWagen assembly plant in city (its obv fucking huge), well every day all their possitive balance that will be used next day for stuff like salaries or other shit, after the turn is over, they have a whole "team" that transfers that money instantly to banking institutions in asia so they can use it, then early in the morning the funds are returned to VW and only by doing that they make millions of dollars every day out of interests and stuff.

I guess stars has some very nice interest rate deal with the Scotland bank for them to pass on the oportunity to handle our money in other ways, what in the beggingin i were trying to say is that obviously our money sitting in stars gives them massive profits.

Well Tusk (the financial operator of RedNines) went broke because of bad investments, stars probably cares more about being financial secure and thus making extra profit in the long run.

On July 22 2008 14:34 LandisReed wrote: Show nested quote + On July 22 2008 11:31 matdon460 wrote:   On July 22 2008 11:00 Fraser wrote:   On July 22 2008 09:39 geometryb wrote: money put in a savings account is insured by the federal government i think only up to 10k afaik FDIC insures up to $100k it is 100k, but if there was ever a bankrun of the scale of the Great Depression, then most people wouldn't get anything. really the FDIC is more of a peace of mind thing, but if the shit really hit the fan then people would be out of most all their money.

...the entire point of the FDIC was to prevent things like people not getting their money from occurring
You may not get your money that day but you will get it eventually

yeeah im pretty sure stars has all our money invested

what rake isnt enough for PS now?

--- Nuked ---

On July 22 2008 14:34 LandisReed wrote: Show nested quote + On July 22 2008 11:31 matdon460 wrote:   On July 22 2008 11:00 Fraser wrote:   On July 22 2008 09:39 geometryb wrote: money put in a savings account is insured by the federal government i think only up to 10k afaik FDIC insures up to $100k it is 100k, but if there was ever a bankrun of the scale of the Great Depression, then most people wouldn't get anything. really the FDIC is more of a peace of mind thing, but if the shit really hit the fan then people would be out of most all their money.

No. People would get all of there money. It's a government gurantee.

The government will just print more money. lol_fiatcurrency.

On July 22 2008 16:39 Baal wrote: Show nested quote + On July 22 2008 11:06 Ket wrote: "Money covering player's balances is held in segregated accounts managed by the Royal Bank of Scotland, ensuring that PokerStars can fulfill its obligations to players at all times." (for pokerstars). so yeah ofcourse all money you hold in accounts is being invested by banks etc but pokerstars is not acting as its own bank or anything. and its laughable to think that if everyone on stars cashed out, royal bank of scotland could't cover it at once. baal dont present your speculations as fact Well it would be very weird for stars to pass on such a huge profit potential.... for example. Theres a VolksWagen assembly plant in city (its obv fucking huge), well every day all their possitive balance that will be used next day for stuff like salaries or other shit, after the turn is over, they have a whole "team" that transfers that money instantly to banking institutions in asia so they can use it, then early in the morning the funds are returned to VW and only by doing that they make millions of dollars every day out of interests and stuff. I guess stars has some very nice interest rate deal with the Scotland bank for them to pass on the oportunity to handle our money in other ways, what in the beggingin i were trying to say is that obviously our money sitting in stars gives them massive profits.

Its not scotland bank anymore. It was before. But I've asked them and they said that they moved out from scotland bank after the USA bill passed. I emailed them again asking spicificly for the name of the new bank and they only said its a leading bank in Europe.

i think lee jones stores all the moniez in his basement (or at least did before quitting)

lee jones doesn't need to store our monies. he shits gold bricks in the morning.

On July 24 2008 13:12 chris wrote: what rake isnt enough for PS now?

was waiting for this line

On July 24 2008 14:02 matdon460 wrote: Show nested quote + On July 22 2008 14:34 LandisReed wrote:   On July 22 2008 11:31 matdon460 wrote:   On July 22 2008 11:00 Fraser wrote:   On July 22 2008 09:39 geometryb wrote: money put in a savings account is insured by the federal government i think only up to 10k afaik FDIC insures up to $100k it is 100k, but if there was ever a bankrun of the scale of the Great Depression, then most people wouldn't get anything. really the FDIC is more of a peace of mind thing, but if the shit really hit the fan then people would be out of most all their money. No. People would get all of there money. It's a government gurantee.

1. It could take years before you got all your money, or any of it for that matter. The bigger the cluster fuck, the longer it would probably take.
2. Government would need to print up the money to meet their obligations, which would lead to devaluation, which would mean you ultimately would end up with less.
3. No such thing as a guarantee.

On July 24 2008 16:18 Cray0ns wrote: The government will just print more money. lol_fiatcurrency.

ding ding ding winner. ok my bad, you will get your "government guaranteed" money, but they will have to print so much that 100k will be worth what 1k was at the time of the event. lol. didn't people learn about inflation in school