Jitters in Second Life as bank shuts doors

See how the real world market correction hits Second Life, continued at The Age:

"The biggest bank in the virtual world of Second Life has closed its doors after a run on its deposits, putting at risk hundred of thousands of real dollars of savings and investments.

On Thursday, Ginko Financial - which is owned by Brazilian from Sao Paulo whose real name is Andre Sanchez - stopped accepting deposits, froze all withdrawals and converted account holders' balances into "tradeable debt securities" called Ginko Perpetual Bonds.

The bonds can be bought and sold on the World Stock Exchange (WSE), the largest of three sharemarkets in Second Life. The exchange is run by a Melbourne-based man whose real name is Luke Connell.

Ginko attracted deposits by offering to pay 0.10 per cent daily accrued interest, which equates to a 44 per cent annual return.

The bank claimed to have 18,000 accounts and deposits amounting to $US700,000 ($A800,000) in real money. The in-world currency in Second Life is called the Linden ($L) and it is freely convertible into US dollars at an exchange rate of $L270 to the dollar."