From: Duncan Frissell <frissell@panix.com>
Date: Wed, 25 Oct 95 12:01:59 PDT
To: hallam@w3.org
Subject: Re: Mark Twain Bank (was: Anonymity: A Modest Proposal)
Message-ID: <199510251901.PAA28429@panix.com>
MIME-Version: 1.0
Content-Type: text/plain


For those interested in the first bank to back Ecash:

Mark Twain Bank opened to serve the wealthy suburbs of Saint Louis (Ladue
and Town & Country) a few years ago.  It was meant to be a public "private
bank" for sophisticated customers.  

A few years ago when the rules were eased, it started offering accounts and
CDs denominated in 25 foreign currencies.  These accounts were meant for
international investors and business types in the area.  They were
discovered by "hard money" newsletters and became popular with that crowd.
They have been the cheapest place to get foreign currency accounts in the
US.  Initially, the bank didn't realize that this sort of "hedge" market
existed but have since exploited it fairly well.

These accounts are FDIC insured up to $100,000.00 in $US equivalents.
Obviously, exchange losses are not covered by FDIC insurance.

The Ecash trial involves opening a World Currency Access Account which *is*
FDIC insured and using it to fund your Ecash account which is *not* insured.
They are treating the Ecash Mint part of their operations and the various
customer Ecash accounts as investment accounts (hence the investor
sophistication disclosure questions on the application form).  

Unanswered questions --- What will the SEC say?

Mark Twain seems to be carrying on the fine old tradition of Saint Louis
banks being a bit independent and out in front of the crowd.  Other examples
include Southwest Bank always leading the nation on Prime Rate changes and
the Saint Louis Federal Reserve Bank (the only FRB to publish a hard money
newsletter).

I may wait for the Swedish Postal Bank to start offering its Ecash accounts
just cause I like foreign climes.

DCF

"The Revolution will *not* be FDIC insured BTW."