With bank seizure mania taking hold nationwide inquiring minds were wondering how secure the QFL funds are with LeagueSafe, or would be with their rival WePay. So, I emailed the guy on a recent press release at WePay about the bank that they use to hold our deposits. The response was not really startling… or was it?
The immediate response (literally ten minutes after first email around 5pm ET) from “Rich” at WePay to my question about which bank holds our deposits.
We use the Bancorp Bank, which I believe LeagueSafe uses as well (according to their FAQ)
If we ignore the fact that the LeagueSafe FAQ that Rich from WePay links us to contains no mention of Bancorp Bank then we should have much confidence that our money is safe.
Bankcorp Bank is viewed as very sound and trending better according to DepositAccounts.com.
The Texas Ratio is an indicator of how much funds a bank has available compared to the total value of loans considered at risk. As of March 31, 2010 The Bancorp Bank had $22.56 million in non-current loans and owned real-estate with $207.21 million in equity and loan loss allowances on hand to cover it. This gives The Bancorp Bank a Texas Ratio of 10.89% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for The Bancorp Bank decreased slightly from 14.32% as of March 31, 2009 to 10.89% as of March 31, 2010, resulting in a positive change of 23.99%.This indicates that the balance sheet and financial strength for The Bancorp Bank has improved slightly in recent periods.
It all sounds great, but nothing ever is. How can we ignore the quick off-the-cuff response to such an important question with the inconsistent FAQ? Unless LeagueSafe and WePay are the same company… in which case… whatever.
But, you better not be lying Rich, this blog has relatively important readers. We’ll be pissed if our league money is stuck for months in a FDIC seized bank or more likely in a collapsed bank because the FDIC was insolvent.
QSN maintains the recommendation that all QFL leagues use LeagueSafe or WePay to insure quick payouts and avoid defaults such as QFL4’s, although it is not mandated in the Constitution. QFL1 is using it. QFL2 is not. QFL3 unknown. QFL4 died probably.
Shades
“contains no mention of Bancorp Bank”
I think you should reread the FAQ. It definitely mentions the Bancorp Bank.
Also, are you joking about them being the same company? You could figure that out very quickly by doing a google search for the company names.
WePay is a Palo Alto company that just raised $7.5 million, LeagueSafe was founded by Paul Charchian, a well known fantasy football commentator.