Only for one hour a day; they're closed the rest of the time.

I'd love to see coinbase's network traffic right now as this spreads through the net. I really wish coinbase would allow currency exchange from bitcoin to any currency (hint hint coinbase).

I remember one of the first algorithms I wrote was to pattern trade the exchange rates (USD -> CHF -> EUR -> DNK -> USD), but then I realized that the fees would kill any potential gains from the imbalances.

I am hoping that this will pan out well for them. This may be a blessing in disguise. I suppose time will tell though!

Well how? I think they will be shut down.

If they don't get served with a notice, they would be the best place around to exchange USD and Bitcoin in American bank accounts.

Which will then cause them to be shut down.

Incidentally, I transferred some BTC from MtGox to Coinbase when I heard this news. It might be safer to have it in my own wallet somewhere, but if there's no way to get BTC back into USD, it doesn't matter where the BTC is to me; I'd consider it written off.

I will happily purchase from you at a discount.

There are always ways of getting USD for your coins, even if you have to sell them on eBay or whatever.