Re:RBS shuts down startup accounts (Smarkets and others)
by Isofarro on Monday February 06, 2012 @12:51PM
(#3558370)
RBS failed because it contained a portfolio of financial assets that overnight became valueless. That value just disappeared.
I don't see how that situation is related to a company whose revenue stream is a commission on bets placed. If the number of bets placed is zero, Smarkets doesn't end up with an asset that goes from billions of dollars of value to zero, and creating a massive black hole in a Balance Sheet.
Re:RBS shuts down startup accounts (Smarkets and others)
by mseebach on Monday February 06, 2012 @12:59PM
(#3558412)
I wasn't reacting to NatWest's treatment of Smarkets, but to the assertion that being taxpayer owned somehow obliges RBS/NW to treat them in a different manner.
I don't see how that situation is related to a company whose revenue stream is a commission on bets placed. If the number of bets placed is zero, Smarkets doesn't end up with an asset that goes from billions of dollars of value to zero, and creating a massive black hole in a Balance Sheet.