Bank charter for eBay's PayPal?

[mandy]

Officials from eBay Inc. and its payments division PayPal Inc. have recently held private discussions in Washington about the possibility of applying for a limited banking charter, according to two people familiar with the company's moves.

The charter would reduce PayPal's dependency on partnerships with other banks.

But San Jose-based eBay's plans were thrown into doubt last month after the Federal Deposit Insurance Corp. extended its freeze for another year on all applications for deposit insurance from commercial parent companies...

full article: http://cbs5.com/business/local_story_052230715.html

[amy]

For years, PayPal has walked a tightrope between acting like a bank and actually being one.

It would be nice to see PayPal actually regulated like a bank.

[BellisimaJ.]

[quote author=amy link=topic=7737.msg44800#msg44800 date=1172180740]

For years, PayPal has walked a tightrope between acting like a bank and actually being one.

It would be nice to see PayPal actually regulated like a bank.
[/quote]

[mandy]

A related story involving PayPal UK:

Online payments company PayPal is to become a bank as part of a push to beef up its European operation and fend off fierce new competition.

The eBay-owned electronic payment system is fighting off a challenge from Google, which launched a rival system last month.

PayPal said it was moving its headquarters to Luxembourg, where it has been awarded a banking licence. This means it will no longer be authorised by the Financial Services Authority, which has overseen PayPal since it became an Electronic Money Issuer in 2004...

full article: http://www.telegraph.co.uk/money/main.jh...ypal15.xml