I spoke with ‘Nicholas Portocarrero’ tonight at length, on the record. I am going to do something I rarely do and run this transcript exactly as it occurred, without cleaning it up or editing it into something more reader-friendly. I’m not really in top form here, but I feel that this is a very honest interaction, and I don’t want to destroy that with editing. The text speaks for itself. I think that it will be particularly interesting to Ginko depositors. “VB” is Virtually Blind editor Benjamin Duranske. “NP” is Ginko Financial head ‘Nicholas Portocarrrero.’
VB: I think people want to know a lot more about you, especially now, and if there’s any chance of you getting Ginko out of this safely… this is a good way to start. So I’m asking, on the record, why start it?
NP: It’s been a long time, it’s hard for me to say for sure what I was thinking at the time. However, what I stated in a previous interview with… I’m not sure who is essentialy it. Basicaly I was reading thebiography of a local banker, he is best known as the Baron of Maua
VB: I think I heard of him.
NP: At the time, or rather, earlier, I had thought about things I could do in SL The two things just connected and I decided to give it a try
VB: Can I inturrupt, and ask a personal question? How old are you? It might not mean anything, but a lot of your associates in Ginko appear to be fairly young, and I think people want to know, whatever the answer is.
NP: I’m in my 20s, that’s all I’ll say
VB: Okay. So you wanted to try banking methods in SL?
NP: Not so much methods, but the business
VB: Can you explain a little more? What was your goal in starting Ginko?
NP: Well, the goal was to create a bank. To build a business based on the banking industry, in some way. It wasn’t really very well defined, at least not that I can recall. I just wanted to build a bank.
VB: Did you think that you would be able to pay 100% yearly interest (.19 daily) at the beginning? That’s what Ginko advertised, and intially offered, I remember.
NP: I’m not sure how to answer that. It was simply an objective fact. In the beggining, even if I were to fail, it would be fairly easy to just pay people from personal income.
VB: You figured, if it didn’t work, you could cover the depositors funds personally?
VB: That’s not possible now though, right?
NP: It wouldn’t be as easy, no. I wouldn’t call it impossible though.
VB: Is that your plan, if it all falls down, to try to cover the withdrawals yourself?
NP: I do not want to commit to any such plan, however I do feel a responsibility to accountholders.
VB: I understand, I’m more trying to figure out what your next steps are. Maybe this is a better question: Does Ginko have assets that cover the depositors claims against it right now?
NP: Not in any liquid form, no.
VB: Can you explain a little more? I know some assets aren’t liquid because they’re tied up for a long time (like long term options, etc.) is that what you are saying, or are you saying that some assets just don’t have any real value now, but they might later?
NP: We have both tangible and intangible assets we have spent money to acquire or develop, but they cannot simply be turned into cash for people to withdraw. For example, some of our most liquid assets are HCL and BNT. Selling 9 millions hares of HCL would be quite… difficult
VB: And that’s because HCL has its own difficulties right now, right, so the shares aren’t worth what you could get for them, if anything?
NP: Well it’s more a question of there not being much of a market
VB: Sorry, edit that — that’s because HCL has it’s own difficulties so you need to get more for the shares than you can get for them right now, to make them pay off?
NP: Ginko’s holdings are too big. Yes
VB: By intangible assets, are you talking about, say the potential for a business to succeed, a web business you run, or somethign like that?
NP: Shaun sold much of his holdings. A lot of it to us, by the way.
VB: Sure. I’ll move my question down. Go on.
but he crashed the market to do to so. we would have to crash it again. Harm all accountholders to finance the withdrawal of a few
VB: So the shares you have just don’t have the value right now. There just isn’t a market for them that can absorb as many as you have. At a price that makes sense to you.
NP: Yes, that is correct
VB: Okay, By intangible assets, are you talking about, say the potentil for a business to succeed, a web business you run, or somethign like that?
VB: I’m taking about your earlier statement, that you “have both tangible and intangible assets we have spent money to acquire or develop, but they cannot simply be turned into cash for people to withdraw.” Can you give some examples of those intangible assets?
NP: You know I’m sort of doing this interview with 50% of my attention
VB: Where is the other 50%?
NP: would you mind if I focused on my work and then we can continue? Getting ginko back on track. I understand such an interview might help. However there are other, more direct things that need done.
VB: Sure, but I want to run this, so can I have 10 minutes more, and then we can followup later too?
NP: ok. You asked about examples. While I’m not going to disclose examples of off-world assets at this time, consider Ginko Financial itself. It is a great platform. Ideal for the marketing of SL products and services. We have most of the code for a shopping website done, which we had neglected to follow up on
VB: People are really interested in the off world assets, because, frankly, people are worried that you have just bought stuff for yourselves, or taken the money. So that’s a question — do you pay yourselves salary?
NP: The support staff, Hinoserm included, receive a wage
VB: Do you receive a salary?
NP: I receive somethign equivalent
VB: Will you disclose that to investors, depositors?
NP: My salary will become public now that Ginko Financial is going public
VB: Do you think it is responsible to offer an IPO, given that Ginko cannot currently cover deposits? Isn’t that just like a loan against already overextended assets?
NP: I think it’s both responsible and ideal. The full meaning of this IPO will become clear soon enough.
VB: Well, seems like there’s no time like the present, since it’s out there. What is the meaning of this IPO? It looks to many like it’s to raise money to cover deposits.
NP: It’s not. The money will not be used to cover Ginko Financial deposits, at all.
VB: Okay, just two more questions. How, exactly, do you plan to cover the deposits?
NP: Can we do this on the follow up?
VB: It’s up to you. I want to run this, and I think that’s the question people really want to hear an answer to.
NP: I know, but working on that is more important than talking about it right now, please give me some time to deal with what I have to do. I’ll probably explain everything via announcements anyway.
VB: The announcement are usually pretty vague. Do you *have* a plan to cover deposits?
NP: There will be very dramatic changes to the way in which GInko Financial operates
VB: Can you give people a little bit of information? They are worried about their money.
NP: I have to go for now
Virtually Blind hopes to continue this interview. We ended our interview so that ‘Portocarrero’ could attend a meeting, to which it appears he has invited a significant portion of the SL blogosphere and press, so I anticipate another story later tonight.
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