US Banks Stuffing ATMs With 20-30% More Cash In Case Of Panicked Withdrawals

Tyler Durden's picture




 

Even as the fearmongering over the debt ceiling hits proportions not seen since 2011 (when it was the precipitous drop in the market that catalyzed a resolution in the final minutes, and when four consecutive 400 point up and down DJIA days cemented the deal - a scenario that may be repeated again), some banks are taking things more seriously, and being well-aware that when it comes to banks, any initial panic merely perpetuates more panic, have taken some radical steps. The FT reports that "two of the country’s 10 biggest banks said they were putting into place a “playbook” used in August 2011 when the government last came close to breaching the debt ceiling. One senior executive said his bank was delivering 20-30 per cent more cash than usual in case panicked customers tried to withdraw funds en masse. Banks are also holding daily emergency meetings to discuss other steps, including possible free overdrafts for customers reliant on social security payments from the government."

The problem with bank runs is that often times, steps taken to mitigate future panics become self-fulfilling prophecies.

Hopefully this is not one of those cases. Then again, since increasingly fewer Americans actually have money in deposit and savings accounts with banks, there is likely nothing to worry about.

h/t Gaganpreet

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Thu, 10/03/2013 - 18:32 | 4020624 VD
VD's picture

you'd think they'd stuff less, just to make sure Cypress in the USSA is all too real and for the sheeple to fall in line right quick. 

Thu, 10/03/2013 - 18:40 | 4020663 Zer0head
Zer0head's picture

panic begats panic

 

as ordered by the federal reserve as ordered by the WH

jump you fuckers jump

 

Thu, 10/03/2013 - 18:57 | 4020673 Skateboarder
Skateboarder's picture

Rank buns result in bank runs.

p.s. cash will be kindling if things go weimar. Long metals, necessities, and supplies. Welcome to Barterville, formerly known as Earth.

Thu, 10/03/2013 - 18:58 | 4020746 bank guy in Brussels
bank guy in Brussels's picture

What the American oligarchs are really salivating at, the final 'fix', is

Seizing that US $ 19 trillion of pension & 401k funds etc in America

Grabbing that and the bank accounts will be their final big play, 'for the security & protection of all US citizens' of course

Just like in Poland and Cyprus

'Today Poland, tomorrow the world !' as Adolf Shicklgrüber Hitler said

Thu, 10/03/2013 - 19:02 | 4020765 Chupacabra-322
Chupacabra-322's picture

"Grabbing that and the bank accounts will be their final big play, 'for the security & protection of all US citizens' of course"

What makes you think the Criminals haven't stolen it already?

Thu, 10/03/2013 - 19:36 | 4020895 12ToothAssassin
12ToothAssassin's picture

Its not a prob,em when you dont have your cash in the banks...

Thu, 10/03/2013 - 23:19 | 4021365 ghengis86
ghengis86's picture

Actually, it still is if you hold FRNs. That's the beauty if it all; I can devalue all the FRNs, even the ones under your mattress!! If its hard assets you hold, fine, I'll grant you that. But one attribute of the FRN our masters love is that they can force you to spend your mattress money by inflating its value away. Serious. It's like John Maybards Keynes thesis or some shit.

Thu, 10/03/2013 - 23:40 | 4021420 Abi Normal
Abi Normal's picture

If you still have your $$$ in banks, roflmao at ya!  That was a 5 year ago decision.

Thu, 10/03/2013 - 23:59 | 4021457 BLOTTO
BLOTTO's picture

Whats the use when the majority of the masses have hardly anything saved?

.

Better to just load extra ribbon to print NSF on the reciept.

Fri, 10/04/2013 - 00:32 | 4021506 flacon
flacon's picture

When do the new $100 bills come out? Oh yeah... THIS MONTH. What a coincidence - nobody could have seen it coming - it wasn't planned that way either. 

Fri, 10/04/2013 - 01:57 | 4021606 fourchan
fourchan's picture

its only paper. 

Fri, 10/04/2013 - 03:13 | 4021661 Oh regional Indian
Oh regional Indian's picture

Perhaps the great american take-down is in progress. 18-19th october is a key date for some reason. And all things considered, I have to say that India, with all it's dysfunction, is in far better shape.

Perhaps because we have a much smaller fall and given the size, diversity and population, a herculean task for monitering said nation.....

But the picture in the link below speaks louder than any words...

;-)

 

Stay grounded fellow zh'ers, the wheat and chaff are at seperation point me-thinks...

ori

http://aadivaahan.wordpress.com/2013/10/04/the-spirit-of-india-in-one-picture/

Fri, 10/04/2013 - 05:41 | 4021704 tocointhephrase
tocointhephrase's picture

Off topic...Worth a punt...http://www.theguardian.com/business/2013/oct/02/albemarle-bond-rescue-talks-rights-issue

To quote the article "The reason for A&B's problems is simple. It has been battered by the falling price of gold on international markets. The drop in the gold price – more than 20% this year – has hammered the company's finances as the value of assets on its books has fallen."

Edit...I declare an interest 

Thu, 10/03/2013 - 19:09 | 4020775 Supernova Born
Supernova Born's picture

The realization of the magnitude of the 100 year fraud of the Fed will hit like a asteroid.

Extra FRN in ATMs will do as much good as stocking staterooms on the Titanic with extra rolls of TP.

Thu, 10/03/2013 - 19:13 | 4020811 Pure Evil
Pure Evil's picture

Ya know, there's nothing like going to the bottom of the ocean with that clean fresh feeling between the cheeks.

Thu, 10/03/2013 - 19:41 | 4020906 malikai
malikai's picture

Nothing like having some extra 30 grit paper to accompany you to the bottom.

Thu, 10/03/2013 - 23:02 | 4021313 The Big Ching-aso
The Big Ching-aso's picture

To keep most people these days from panicking they ought to just credit their zero bank accounts with $20 to $30.

Thu, 10/03/2013 - 23:05 | 4021320 Serenity Now
Serenity Now's picture

This comment made my day.  I could not stop laughing. 

Fri, 10/04/2013 - 02:09 | 4021614 imbtween
imbtween's picture

who among the PM stackers here will be broke when TSHTF this weekend?

Thu, 10/03/2013 - 19:14 | 4020817 CheapBastard
CheapBastard's picture

The 401s and mortgage interest deductions will be the first to be taxed or curbed from what I read. They are easy pickings...low fruit if you will.

Thu, 10/03/2013 - 19:47 | 4020919 August
August's picture

>>>Adolf Shicklgrüber...

Ein Umlaut ist nicht erforderlich

Thu, 10/03/2013 - 20:19 | 4021016 Kirk2NCC1701
Kirk2NCC1701's picture

Ich weiss zwar wer der Kerl ist, versteh' jedoch den Witz ni't.

Bitte schreib mir an meine Anscrifft     Kirk... @ hushmail.  Mfg, K.

Thu, 10/03/2013 - 20:26 | 4021030 jvetter713
jvetter713's picture

I fully agree that the 19T is in their plan but here is the deal:

Most of this is invested in *something*.  I don't know the break down but surely >50% of that is in equities, yes?

Some bonds some cash but prolly not all that much cash.  If they steal that they have to sell the asset in order to get the cash which would likely cause plummeting asset prices.  So, sure, they could grab the 19T but in doing so and liquidating how much cash would they actually be stealing?  10T?  5T?  1T?

Thu, 10/03/2013 - 21:37 | 4021181 smlbizman
smlbizman's picture

i would think they would use the asset to borrow against....moar moar how do u like it how do u like it....

Thu, 10/03/2013 - 21:49 | 4021197 Clever Name
Clever Name's picture

Yes, I would assume some multiple of that 19T, lets just say 30x that amount. Sounds right to me!

Thu, 10/03/2013 - 22:59 | 4021306 Braverdave
Braverdave's picture

Very cool name.

And clever pic too.

(edit: 30x to 50x {or more} seems about right. To me.)

Fri, 10/04/2013 - 00:07 | 4021468 duhhhhhh
duhhhhhh's picture

Is that meant to be ironical?

Thu, 10/03/2013 - 19:06 | 4020764 Ness.
Ness.'s picture

"Ya ya you're thinking of this all wrong, as if I had the money back in a safe..."

 

George Bailey. 

 

http://www.youtube.com/watch?v=_Er69b4HMl8

Thu, 10/03/2013 - 20:10 | 4020978 XenoFrog
XenoFrog's picture

Good thing I already lost my savings in a silver boating accident.

Fri, 10/04/2013 - 01:09 | 4021557 IndyPat
IndyPat's picture

Psst....Wanna buy some bitcoin?

Fri, 10/04/2013 - 01:10 | 4021560 silverserfer
silverserfer's picture

you mean u tradegicly lost you boat on the way to the LCS?

Fri, 10/04/2013 - 01:46 | 4021597 IndyPat
IndyPat's picture

Shhhhhh.....be very quiet.
Feeding the troll

Thu, 10/03/2013 - 23:25 | 4021387 Wahooo
Wahooo's picture

Had to read the article to understand the headline. They are not stocking up on cash. They are stocking their ATMs with more cash, thinking people might want to take out more cash from ATMs. Big difference. This is all about nothing. And BTW, the politicians have until October 17 to grab headlines and get on TV. Hope you didn't sell your stocks on this "news".

Fri, 10/04/2013 - 22:24 | 4024726 MontgomeryScott
MontgomeryScott's picture

Had to re-read the article to understand your comment.

They are stocking the ATM's with cash, in order that the expected runs on the ATM's could be dealt with in a fashion that gives the sheople 'confidence' that the banking system is still able to function (despite the 16 Trillion (reported) deficit by USFEDGOV, INC.).

Over in Alexandria or Hiafa, the reported 'BLIP' in posts reflects a fact that is often ignored, but surely prescient: You fuckers are getting SCARED, and are posting this stuff, commenting in a fashion that tries to make the average investor feel somehow 'stupid'.

TO WIT:

"Hope you didn't sell your stocks on this "news"."

FEED THE PIG (DOT ORG)   YES, this is a real website, run by the PTB.

"They are stocking their ATMs with more cash, thinking people might want to take out more cash from ATMs."

Q:

If people have cash in the first place, why would they put it in banks? IF SAID people were then forced to try to GET the cash that they don't have, WHY would they begin to rely on 'lines of credit' available at ATM's? WHY would there be a sudden 'NEED' for these people to 'have currency', instead of living as they always have done?

A:

PROGRAMS (PROGROMS!) such as 'DIRECT DEPOSIT' have permeated the once-free Nation of States, and people are forced in to agreeing to this method of debt instrument compensation. The 'big banks' have now seen that 'debt is money'. and have taken total advantage of this fact of life. AS the 'CREDIT RATING' is now declining, and the 'interest rates' are set to increase exponentially, people, in rapid fire, are beginning to prepare for this by the false hope that 'currency'; be it real or FIAT, is 'safer' than leaving 'DIRECT DEPOSITS' in these 'financial institutions'.

Seriously, Wahooo, you are either a GOVERNMENT SCHILL-PLANT, or a STUPID MOTHER-FUCKER.

 

Thu, 10/03/2013 - 23:48 | 4021438 Oldballplayer
Oldballplayer's picture

Can I be Master Blaster this time!

Fri, 10/04/2013 - 22:31 | 4024754 MontgomeryScott
MontgomeryScott's picture

WHO, RUN, BARTERTOWN?

DAMNIT, I TOLD YOU 'NO MORE EMBARGOS.'

FOUR, THREE, TWO...

http://www.youtube.com/watch?v=Hgq4w4dqKsU

Fri, 10/04/2013 - 21:54 | 4024666 MontgomeryScott
MontgomeryScott's picture

@Zerohead:

President Obama Meets With Head of Goldman Sachs to Talk About “Payday Loan of Sorts”

That's the current headline over at Ben Swann's site. Several other sites have been discussing this over the past several hours, and I thought you all might like to see it.

http://benswann.com/president-obama-meets-with-head-of-goldman-sachs-to-...

I cannot vouch for the accuracy of this. 'I am only an egg.' To those who have never read great scientific fiction, I suggest Robert Heinlein's 'Stranger In A Strange Land' as required reading in 'FUTURES 101' courses. Read the book (GOD, don't watch the 'movie'!).

     Things are getting rather strange. I understand the the USFEDGOV swooped in and tried to close Mt. Vernon (George Washington's old house), because of the 'Shutdown'. ONE ISSUE:

Mount Vernon was bought and is run by PRIVATE, NON-GOVERNMENT people, and has been for a number of years now.

http://townhall.com/news/around-the-web/2013/10/04/park-police-attempt-t...

PARK POLICE? Is this like the dystopian Orwellian vision of a 'kindler, gentler' fascist boot stomping on your debt-laden face forever, or WHAT? Do they write tickets for bending blades of GRASS? NO! They are awaiting (drooling at the promises of) MRAPS to CORRAL, HERD, and MURDER 'those who visit historic sites without proper tax funding and subsidies from the banks that OWN them'.

Well, I said 'one issue', but there may be others.

800,000 'furloughed' 'non-essential emplyees'. if they are 'non-essential', why are the taxpayers being forced to pay for them in the FIRST PLACE? 'THEY' seem to have the CAPITAL to pay people to drive to Mt. Vernon and try to shut IT down (and force the closure of all the historic sites and parks which were previously fully open without any barricades, like the WWII memorial in D.C., or Yellowstone).

They won't JUMP. Nice reference, however.

You and I will be forced to PUSH THEM.

It's like that time when you got a piece of glass in your foot. It hurt like hell, and you either dug it out yourself (feeling the pain), or went to a doctor and paid a shitload of money to him to do it for you (feeling another type of pain). NO, it's more like the time you floated down the Amazon River, and the leeches attached themselves. It hurt, but pulling them off hurt more. In the end, however, you were alive, and they were dead, and you endured the pain, and your body finally HEALED.

Thu, 10/03/2013 - 18:43 | 4020679 TaperProof
TaperProof's picture

I clicked on this article to say exactly what you just said. haha

Thu, 10/03/2013 - 20:10 | 4020980 max2205
max2205's picture

Just charge it dumbasses

Thu, 10/03/2013 - 21:38 | 4021187 Buck Johnson
Buck Johnson's picture

I've said it before and I will say it again, once the checks stop coming the people start going nuts.

Thu, 10/03/2013 - 18:35 | 4020634 xamax
xamax's picture

I expect NFLX at 500 and TSLA at 300 by year end.

To the other stories I give a shit.

Thu, 10/03/2013 - 19:55 | 4020939 moonstears
moonstears's picture

JCP to $50, too?

Thu, 10/03/2013 - 18:35 | 4020637 ultraticum
ultraticum's picture

Where on earth do the banks get all that cash?  MOAR debt!!!!!

Thu, 10/03/2013 - 18:36 | 4020642 TeamDepends
TeamDepends's picture

20-30% MOAR!!!!

Thu, 10/03/2013 - 18:39 | 4020655 GVB
GVB's picture

Put in the Trillion OBAMA note!

Thu, 10/03/2013 - 18:41 | 4020671 TeamDepends
TeamDepends's picture

Obama maid-servant Pelosi on the 500 quadrillion.

Thu, 10/03/2013 - 18:46 | 4020693 fonzannoon
fonzannoon's picture

It's a great move. Very krugmanesque. Stuff the machines. Casuse mild panic. People withdraw money. Panic ends. People never put money back and spend it instead.

Thu, 10/03/2013 - 18:51 | 4020724 McMolotov
McMolotov's picture

Red money...

Thu, 10/03/2013 - 19:03 | 4020768 bank guy in Brussels
bank guy in Brussels's picture

For newer people here ... a ZH classic, 'red money'

Way back in July 2010 on ZeroHedge, Bruce Krasting did a great piece on the age-old Wall Street story, on how the US Fed and government might suddenly be very motivated to replace all the current currency notes, with 'red money' that is already printed, waiting at Federal Reserve Banks ... making all the 'green money' notes held all around the world, invalid within 90 days or so

http://www.zerohedge.com/article/red-money-conspiracy-theory-11

« I believe in Red Money ! »

Thu, 10/03/2013 - 19:18 | 4020834 Pure Evil
Pure Evil's picture

They copied that from an episode of M*A*S*H.

The Army was switching old scrip for new and Charles got the idea to go outside the camp and buy up all the old scrip from the locals before the deadline for pennies on the dollar.

The episode ended with Charles getting screwed because he couldn't get back before the deadline to switch the old scrip for new scrip.

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