Midas Bank - Sub-prime?

Sorry for not posting any information until now, too many people are jumping to conclusions and I didn't want to report anything until I had an understanding myself.
I was unable to get comment from Midas Commons as the Midas Bank was empty when I arrived (strange!) so I am still remaining on the fence at this stage.

The information released thus far:
Midas - "ON Nov. 2nd 2007 Hope Capital and the WSE, despite having an ample supply of lindens, blatantly witheld payment due on a 3.5 million linden dollar Hope Capital corporate bond issue that they had sold to Midas Bank this past summer(ticker HCB). Midas Bank protested and in response a malicious and aggressive action was taken against Midas Bank by Hope Capital. In an act of brazen thievery and tyranny, Midas Bank's shareholders' stock on the WSE was dissolved, thousands and thousands of Lindens in a Midas Bank WSE account were confiscated, and any and all Midas Bank holdings on the WSE were liquidated, seized, or converted into a fuzzy and nearly worthless financial unit called the WTF. After this, a false announcement was posted on the WSE that Midas Bank and all its Second Life financial businesses had suddenly gone bankrupt for mysterious reasons. Hope Capital clearly wishes to destroy Midas Bank so they can cancel the roughly 5.5 million linden dollar debt that they owe Midas Bank. They owe this money fair and square with no strings attached. The bank is insolvent until this situation can be resolved. The avatar named LukeConnell Vandeverre is solely responsible for the decisions that created this event. He is the boss of the WSE (he calls himself the CEO) and it was he who sold the bonds (bad paper), he who decided not to pay what was promised and owed, and he who dissolved all Midas Group Financial assets on the WSE without consulting anyone about it first. He has no regard for any rules, regulations, or honor code. We need to all work together to resolve this situation promptly"

WSE LukeConnell - " Midas Commons, CEO of Midas Bank yesterday informed the World Stock Exchange that the Midas Group of Companies are bankrupt.
The WSE accounts controlled by Midas Commons were locked while we reviewed the situation.
The cause of this bankruptcy is not our concern as the WSE is not responsible for the decisions and actions of Midas Group and its management. Midas Group and its management team are responsible for all the financial and operational decisions.
The WSE believes that the Midas Group of Companies were Over-Leveraged and did not hold sufficient cash reserves to allow for the potential risks and impact of increased customer withdrawals, lower than expected earnings from investments along with regulatory and economic challenges.
The World Stock Exchange has now delisted the following Midas Group of companies to ensure that shareholders will have the best possible chance to earn a return on their investments through capital growth and dividends using the WSE Traders Fund:
Midas Group High Yield Bonds (MGB)
Midas Group Financials (MGF)
Midas Development Company (MDC)
Conversion rates:
OLD ---- NEW WTF SHARES
MGF 1 - 1
MDC 1 - 1
MGB 1 - 100
All shares in the above companies have been transferred to the WSE Traders Fund (WTF) which has a higher Net Asset Value per Share than the above companies had due to the removal of shares previously owned by Midas Commons.
The World Stock Exchange has requested that Midas Group provide the WSE with the most recent list of Midas Banking customer avatar names and balances so that the WSE can issue former Midas Bank customers with 1 share in WTF for every L$1 linden held in Midas Bank.
This will ensure that Midas Bank customers will have the best opportunity to minimise the loss and impact resulting from the bankruptcy of Midas Bank.
The WSE will post an announcement when it receives a response to its request for the former customer list of Midas Bank."

WSE Concierge - "You can read the Hope Capital Report that explains the situation regarding Hope Capital Bonds which was released over 3 weeks ago.
Even if Hope Capital did make a bond interest payment rather than moving it forward, Midas Bank would have only received around L$600,000 which would be the only income for his net bank deposits of L$8m to L10m. This represents around 6% cash reserve, an extremely risky cash position for his bank and related companies."

From the onset, it looks like a lot of finger pointing from Midas Commons and a simple numbers game from WSE. If Midas Bank was so heavily invested in one (1-seriously!) equity that bought the whole bank down, why are people claiming it was well-run and transparent. Surely this would have rang alarm bells!

Anyway, before I pass any more judgment, I will await more information.
I urge those that are commenting on this do the same!

I have changed the setting on this website to allow for "anonymous" comments, so hopefully this will improve discussions. Just remember to keep personal attacks for another forum, use the spell checker and please back what you say!

Chat real soon,
Logansan Oh
- CEO, Chairman