From an announcement at the Ancapistan Capital Exchange by IntLibber Brautigan:

ACE is not affected by the new policy, as we do not pay interest on deposits, and never have. We keep 100% reserves, because we are a stock exchange, not a bank. Its YOUR money, you decide how to invest it.

We have also seen no significant withdrawals from ACE, reflecting the publics confidence in the security of this institution.

As for BNT, BNT as a whole is worth ten times more than its deposit liabilities, as our latest financial report details, so we have no problem with meeting our liabilities.

BNT is also, in the real world, M2B LLC, a Delaware LLC. As a legitimate registered business, we are free to take on debt, and pay interest on accounts payable like any other real business. M2B LLC's Certificate of Formation is on display at ACE in Venture Square for all to see. There is no question that BNT and ACE are solid institutions with good futures ahead in SL.

As for the wisdom of the LL policy, leave that to the pundits, however I will note that LL insists that the L$ is a "licensed product", and thus it is paradoxical for them to prohibit legitimate businesess from paying rent on use of a "licensed product", or of requiring a banking charter to pay such rent on what they claim is not money. What is also paradoxical of them is to insist they are not going to regulate banks, but prohibitions are a form of regulation, as is any subjective determination of what constitutes "sustainable" interest.

Through all this, we continue to take your money seriously, and we appreciate your confidence and trust in us.

Stay tuned to SLReports.net for more information.

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SLReports.net User   | 2008-01-09 22:25:52 did you know that intlibber brautigan is the only person on the surface of the planet that can simultaneously kiss his own ass AND toot his own horn? Reply | Quote 0   0

Kailen Juran     | 2008-01-09 22:39:19 I agree with Mr. Brautigan's bewilderment regarding Linden Lab's view of the Linden dollar. It seems that for LL, sometimes it's Monopoly money within a game and others it is a real currency with actual value. If the former were true, banks would be play banks (and gambling done for points). If the latter is true, then it is money of a particular kind. I think that he and I believe it to be the latter. With that said, I do not think ACE is quite out of the woods yet. Yes, the exchange itself is not an issue, but it does host dividend-paying companies, and that might be in LL's gun-sights in the near future. Reply | Quote 0   0

SLReports.net User   | 2008-01-10 02:54:55 I am pretty sure dividends are being counted as a type of interest. So ACE is not out of the woods. Reply | Quote 0   0

SLReports.net User   | 2008-01-10 04:04:15 Dividends are interest?? Wow! Where did you learn this stuff? I always thought that dividends were a percentage of profits, split between "owners". Although I don't agree with you, I do agree with Kailen that LL may target those in the future. Reply | Quote 0   0

Maelstrom Baphomet   | 2008-01-10 09:16:08 ACE is not out of the woods, because the banking ban 's verbatim does not spell out interest alone, but both interest and direct return on investment. Dividends are a direct return on investment. Reply | Quote 0   0

Yanik Lytton   | 2008-01-10 11:10:55 What scares me is exactly a statement like that: "ACE is not affected by the new policy..." First, all businesses ARE affected by it, even if they aren't a bank. I'm only an investor, and looking at my portfolio, I am affected by it. Some people cannot withdraw to pay rent or tier. They are affected too. I would have prefered Intlibber saying "I don't think we are affected by it, and are following closely on the outcome". What he just stated is what people have complained to LL about. We're safe, do business with us. Nothing to fear. Trust me. blah blah blah And secondly, what LL posted is merely what they will do on the 22nd, and then, maybe their secretary ommited to mention exchanges. "We are currently experiencing problems with our blog. Some words appear to not print correctly. Rest assurend that we are working on it and will fix it as soon as possible. Thanks for your comprehension." Never be too sure of what you can or cannot do here. LL is GOD. And they just don't care to sacrify one's soul to save another. Yanik Reply | Quote 0   0

SLReports.net User   | 2008-01-10 13:28:51 I agree with you Yanik, its words and actions by people like Intlibber and Luke that put exchanges at risk. Reply | Quote 0   0

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