Bank Failures, Not Just for The Real World Anymore

It's rare to see a bank go out of business. When it happens, customers usually come out unscathed thanks to FDIC insurance coverage. In the virtual world, there's no such thing.

The online world of Second Life recently saw a number of banks shut down because banks weren't delivering on their promises. The group that runs the game decided to step in after hearing that some Second Life banks lost all their money in bad investments. There were good old fashioned runs on banks, and some folks didn't make it to the exit on time.

The Second Life world may be make-believe, but apparently the money is for real. People run businesses and get real dollars involved.

To find out more about the Second Life banking fiasco, see recent coverage in the Wall Street Journal.

Further reading:

• Online banking in the real world: Online Banking 101