JP Morgan Chase Bank founded; critical breakdown of complex investment system
NEW YORK CITY, USA - Today, Wall Street meets its first international bank: JP Morgan Chase, an investment institution founded by current CEO Ian Trafford (a former 4-Star General of the United States Army).
The bank appears to utilize the restrictions of Roblox, while combining complex real-life banking options into a comprehensive and realistic opportunity to invest. According to the bank's personal investment guide, they specialize in taking deposits from clients - particularly to safeguard against money loss (in the event of losing Builder's Club membership), to gain interest in a personal savings account, or any other reasons which would require long-term storage of money.
The bank claims that it will use deposited funds to make loans to countries. In order to safeguard against fraudulent clients that do not pay back revenue in loans, the institution will not give loans to private citizens or individuals.
So, how would saving money in a bank work? The institution claims that all deposits will gain back a 1% interest each month. For example, say a client deposits R$500 in a savings account. 1% of R$500 is R$5. After one month, you would have R$5 back from interest, which means you have R$505 in total in your account. However, at the next month, the bank would return to you 1% of R$505: meaning that by the end of the second month, you would have R$5.5 in interest. But because Roblox does not allow fractional values of one Robuck, the bank would round up: giving you R$6, and R$505 + R$6 = R$511.
HOWEVER, another catch of JPMorgan Chase's interest system, is that interest is only returned in the form of Tickets. If at the end of a certain period of time, you have R$50 in interest, and you wanted to cash out your savings account, the bank would have to transfer R$50 to an equal amount of Tickets. Say that the current R$-Tix exchange rate is at R$1 = 30 Tix. Then, you'd have 1500 Tix in interest. But, if you get the money today, and decide to transfer the Tix back into R$ a few weeks later, the exchange rate could have increased. It could now be R$1 = 20 Tix, which means that your 1500 Tix becomes R$75 (1500/20 = 75). You would have made an increase in interest through the currency exchange market! But, if the rate drops to something like R$1 = 40 Tix, you'd have approximately R$38 back in interest - only 76% of the interest you would have gotten back if the interest were returned in R$ rather than Tix. Although this seems to be a miniscule return rate with especially high risks, depositing money in a savings bank for perhaps, a year, could bring back hundreds in interest alone (if you're lucky).
Of course, this return rate would only be available to BC members. NBCs (non-Builder's Club) would have to use the somewhat difficult-to-decipher credit system which the bank offers. JPMorgan Chase's credit system, is synonymous with the interest system explained above. But rather than directly giving a client funds derived from their interest, credit would give back goods and services. For example: a NBC client deposits R$200 in a savings account. That client wants some form of reimbursement similar to interest, but because funds cannot be transferred back to them without a (outrageous, Roblox-instituted) 90% tax, interest is returned in the form of services: such as "more stock options and free wealth management advice, as well as the exemption of monthly fees".
So, the NBC credit system stores your money, then gives it back afterwards, and offers you investment options to use more of your money in their stock exchange (JPMEX), which brings them money.
So how does JPMEX work? A stock share is worth R$25, with the bank paying a stockholder 1% interest on the stock's value. If somehow - miraculously - this stock rises to, say, R$1,000, the stockholder would get 1% of that: R$10. BUT, remember that those precious TEN ROBUX are given back to you in Tickets - WHICH YOU must transfer back into Robux through a constantly fluctuating and extremely dangerous currency exchange market.
If you are of the "Investor" status (meaning you gave JPMEX more than R$250 for stocks), your interest increases to a 2% return rate. But, again, this is given back in the form of Tickets, which you risk losing money to transfer back into the form of Robux.
Now WAIT, THERE'S MORE: you would only get 70% of any revenue due to you by JPMorgan Chase. Why? Because Roblox has a 30% tax. So if a client deposits R$50 in a savings account, then decides they want to take back out the money without interest payment (perhaps they didn't hold the acount for over a month), JPMorgan Chase would return that money to you: exactly R$50. Minus the 30% tax, you get R$35 back - a loss of R$15. This may also seem miniscule, but imagine this effect applied to a few hundred, thousand, or perhaps even million Robux in in a savings account.
However, the establishment of such a financial institution leads Americans to wonder whether Congress will be required to pass legislation addressing investment scams such as those prevalent in JPMorgan Chase's bank.
POLITICO Business & Finance (updated 9:12 AM EDT, 2015/2/1)