PayPal’s IPO Woes Continue. The online payment company is facing new troubles in the form of a lawsuit and an order from the state of Louisiana to stop doing business there. By Joanna Glasner. [Wired News]
Louisiana is saying that PayPal is an unlicensed bank. Of course PayPal is not a bank, and that’s the whole point of the state’s action. Real banks see PayPal as competition, and are trying to use the government as a club to squash it.
I don’t personally have any sympathy for PayPal, which deserves to go out of business for they way they treat their customers. If the banks had any sense they would just wait for PayPal to fail naturally and then buy up what’s left in a year or two.
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