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ECT News Community   »   E-Commerce Times Talkback   »   Re: PayPal Booted Out of State, Under Legal Siege

Re: PayPal Booted Out of State, Under Legal Siege
Posted by: Elaine X. Grant 2002-02-12 14:03:52
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Just days after a lawsuit forced PayPal to delay its IPO, the state of Louisiana ordered
the online payment company to stop doing business with its residents without a license.
New York, California and Idaho also have notified PayPal that it may be operating an
unauthorized banking business. "They don't have to worry about Louisiana, but they do
have to worry a lot about California and New York, and whether this sets a precedent for
other states," Gartner analyst Avivah Litan told the E-Commerce Times.

Re: PayPal Booted Out of State, Under Legal Siege?Deutsche Bank-ING
Posted by: leeflang 2002-02-13 12:44:06 In reply to: Elaine X. Grant
Although great research was done on the Paypal IPO, what I miss in all the analysts' comments on the postponed Paypal IPO, is what may really be behind the suit by Certco: The fight for the US market by ING and Deutsche Bank.
Maybe it is worth researching?

The public facts are that:
- Deutsche Bank was the major investor in Paypal in the first and second rounds
- ING (NOT Deutsch Bank) was the major investor in the third round
- ING and DB are two of the world's largest banks that compete in Europe and the USA
- ING set up Paypal's European p2p-network, replacing the original announced p2p-deal in Europe through DB's partner ECash.
- ING has an aggressive strategy to expand in the USA (f.e. ING Direct) so you can imagine that DB would not especially like all this cozyness between ING and Paypal using DB's own money in Paypal to gain an advantage on DB.
- DB must have insider knowledge of Paypal's operations and patent issues from having been a Paypal investor from day one. So they have the means to thwart the ING/Paypal venture.
- Deutsche Bank has a board member on the board of Certco. So this director is a potential means of going after Paypal and is in place.

Isn't it likely, knowing these facts, that they are not coincidental and that the suit by Certco is all about the battle between ING and Deutsche Bank and that Paypal is just being used for this?

The question is if the CEO of Paypal is good enough to play these banks against each other and come out winning.
battle of giants

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