Quote:
Originally Posted by Tusdar
I work in treasury for a bank. All of these funds would not be available at any given time so if there was a run on GG they would not be able to make all their obligations just like what has happened to SVB. Either the bank the money is deposited with or GG themselves would manage the treasury functions of these player funds (FX hedging, O/N deposits, money markets etc). It really should not be any surprise to anyone that these funds in a bank account get used. The bank must beet its regulatory requirements such a leverage ratios, Basel 3 etc so the money can't just sit there.
I am not disputing what you are saying, but it is in contradiction with what is in GG's Ts & Cs, that
"Any funds you deposit with the Company will be held in a segregated bank account in the name of the Company."
I mean, I agree with what you've said in principle anyway, because "holding all player deposits in a segregated account", but simultaneously having "no protection"
in the event of insolvency, are contradictory statements in themselves, because it is extremely hard to image GG becoming insolvent and while it
is in the process of happening them not touching a penny that is in the client segregated account.
If this did happen, they became insolvent but didn't touch the money in the segregated account, then players
would have protection,
save the bank that the segregated funds are being held in, defaulting.