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Creeping Capital Controls At JPMorgan Chase?

Tyler Durden's picture


A letter sent to a ZH reader yesterday by JPMorgan Chase, specifically its Business Banking division, reveals something disturbing. For whatever reason, JPM has decided that after November 17, 2013, it will halt the use of international wire transfers (saying it would "cancel any international wire transfers, including recurring ones"), but more importantly, limits the cash activity in associated business accounts to only $50,000 per statement cycle. "Cash activity is the combined total of cash deposits made at branches, night drops and ATMs and cash withdrawals made at branches and ATMs."

Why? "These changes will help us more effectively manage the risks involved with these types of transactions." So... JPM is now engaged in the risk-management of ATM withdrawals?

Reading between the lines, this sounds perilously close to capital controls to us.

While we have no way of knowing just how pervasive this novel proactive at Chase bank is and what extent of customers is affected, what is also left unsaid is what the Business Customer is supposed to do with the excess cash: we assume investing it all in stocks, and JPM especially, is permitted? But more importantly, how long before the $50,000 limit becomes $20,000, then $10,000, then $5,000 and so on, until Business Customers are advised that the bank will conduct an excess cash flow sweep every month and invest the proceeds in a mutual fund of the customer's choosing?

Full redacted letter below:


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Wed, 10/16/2013 - 15:33 | 4061861 Gene Parmesan
Gene Parmesan's picture

It's only going to get worse from here.

Wed, 10/16/2013 - 15:34 | 4061870 ShorTed
ShorTed's picture

Fuck you Jamie

Wed, 10/16/2013 - 15:35 | 4061878 NotApplicable
NotApplicable's picture

Bail-ins for EVERYONE!!!

Wed, 10/16/2013 - 15:40 | 4061896 markar
markar's picture

and the sheeple cheered!

Wed, 10/16/2013 - 15:47 | 4061927 Pladizow
Pladizow's picture

Every day US Citizenship becomes worth less!

“Whenever destroyers appear among men, they start by destroying money, for money is men's protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked: 'Account overdrawn.'”  - Ayn Rand

Wed, 10/16/2013 - 15:49 | 4061952 Lost My Shorts
Lost My Shorts's picture

Before we all go off the deep end here, though ...

Is this just for one product, or all business accounts?  Is it just a sort of price increase, forcing people with the product mentioned, who really want international wire transfers or more cash action, to switch to a more expensive product?  Is it a matter of compliance cost for a product where very few customers actually use wire transfers or handle much cash?

Wed, 10/16/2013 - 16:00 | 4062029 fonzannoon
fonzannoon's picture

"Is it a matter of compliance cost for a product where very few customers actually use wire transfers or handle much cash?"

That is my guess.

Wed, 10/16/2013 - 16:04 | 4062042 Pladizow
Pladizow's picture

Guess again!

Avalanches begin as a snow flake.

Wed, 10/16/2013 - 16:06 | 4062056 Fukushima Sam
Fukushima Sam's picture

Lube up the buttholes, here comes Jamie with his strap-on!

Wed, 10/16/2013 - 16:43 | 4062257 ParkAveFlasher
ParkAveFlasher's picture

Is Tyler keeping a JPM running summary?  1) out of commodities 2) creeping capital controls 3) Jaime D. finds God, decries debt 4) Blythe out? 5) aluminum manipulation (wrong white shiny metal, but whatever) 6) record fines 7) Jaime dethroned somewhat...

...what's going on over there?

Wed, 10/16/2013 - 17:00 | 4062315 tickhound
tickhound's picture

Reads like a 7-step checklist to becoming Treasury Secretary... Worst case an Ivy League President.



Wed, 10/16/2013 - 17:06 | 4062331 DoChenRollingBearing
DoChenRollingBearing's picture



If the Bearing Guy were a JPM account holder here is what I would say:

"OK, no more incoming wires from overseas!  No more deposits totaling over $50,000 / month. 


Wed, 10/16/2013 - 17:24 | 4062396 Mister Ponzi
Mister Ponzi's picture

Ending this statement with the sentence that they look forward to serving all the customer's needs ist pure cynicism.

Wed, 10/16/2013 - 17:50 | 4062506 iinthesky
iinthesky's picture

Hmm.. Methinks for an explanation of this move, look to the IRS

Wed, 10/16/2013 - 17:57 | 4062532 fonestar
fonestar's picture

Risk management?  They can't even spell CHEQUING properly!

Wed, 10/16/2013 - 18:43 | 4062712 Scarlett
Scarlett's picture

meanwhile bitcoin is rallying as the Chinese enter with full force

Wed, 10/16/2013 - 17:06 | 4062335 MillionDollarBogus_
MillionDollarBogus_'s picture

Chase announces the upcoming end of a service with their business accounts and the drama queens here make Chicken Little look like the sleepy Maytag repair man on a slow day.

So go buy more PM, guns & ammo.

And don’t forget to stock up on more cans of Dinty Moore stew, to prepare for the doomsday scenario, which you’ll need when you seal off the secret underground bunker you built in the back yard..

Buy the bigger cans – you’ll need some place to store the waste…

Thu, 10/17/2013 - 01:37 | 4063998 Tompooz
Tompooz's picture

To answer the Flasher's question: Listen to the latest JPM earnings  conference call and all becomes clear. The TBTF is failing allright..

Wed, 10/16/2013 - 16:07 | 4062065 fonzannoon
fonzannoon's picture

they are giving this client a month. he could technically wire out everything he/she has before then. the key to capital controls are no advance notice.

this, like everything else on here lately, is a nothing burger.

Wed, 10/16/2013 - 16:18 | 4062122 jbvtme
jbvtme's picture

the last time i sent a wire from my bank, i had to provide a blood and stool sample

Wed, 10/16/2013 - 16:19 | 4062123 fonzannoon
fonzannoon's picture

are you okay?

Wed, 10/16/2013 - 16:39 | 4062232 SilverIsKing
SilverIsKing's picture

If he had to provide a urine sample I'd be concerned.

Wed, 10/16/2013 - 16:42 | 4062239 knukles
knukles's picture

Nah, man. I'm pretty fucking far from okay.


They wanted me to eat a stool burger....

Wed, 10/16/2013 - 17:00 | 4062318 Chupacabra-322
Chupacabra-322's picture

I see this was the reason for that little visit to the White House a few weeks or ago.

Wed, 10/16/2013 - 17:06 | 4062337 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Bring out the Gimp

JPM also refusing to represent GLD ETF holders with >100,000 shares asking to redeem in phyz

Wed, 10/16/2013 - 17:18 | 4062376 fonzannoon
fonzannoon's picture

That's always been the case.

Wed, 10/16/2013 - 17:41 | 4062463 seek
seek's picture

Boiling frog. Most won't pay attention to notes like this, and when the time comes where they'd want to make a transfer, they can't.

This is building a foundation, not the final step. And it's not just JPM, I recieved the exact same notice from my decidedly not JPM bank a month ago.

Wed, 10/16/2013 - 16:06 | 4062061 Urban Redneck
Urban Redneck's picture

See the words "risk management"?

Do you see an offer in the letter of an alternative product that fulfill a need for international bank wires?

Do you understand how the wire desk a bank works and the BSA/PA regs that would affect customer wires (or how there is no differentiation/discrimination based on account type, and no increased compliance cost if they offer international wires for any ONE account)?

Take it from ex-banker, grab your ankles and get ready to lose your shorts again...

Wed, 10/16/2013 - 16:43 | 4062253 max2205
max2205's picture

Look out.   Bens eu swaps are coming back to ths us

Wed, 10/16/2013 - 16:41 | 4062241 1C3-N1N3
1C3-N1N3's picture


forcing people with the product mentioned, who really want international wire transfers or more cash action, to switch to a more expensive product?

Notice the accounts affected are interest-bearing checking accounts. Get 'em to switch to a non-interest bearing account with fees if they want to wire funds out.

People really are going off the deep end. I thought I was bad.

Wed, 10/16/2013 - 16:41 | 4062243 CPL
CPL's picture

The first candy bowl the hand goes into is called Roth IRA's and 401k's. 

Next bowl they stick their hand into won't be worth anything. 

And it doesn't matter if it's 'business' service or teller side public, IRA's and 401k's come with signing conditions in that legal document everyone signs to get the 'safety' of a government backed account.  Anyone that has one should be aware of that, by signing, permission was given to loot the accounts blind as political movements see fit.

Wed, 10/16/2013 - 16:43 | 4062252 knukles
knukles's picture

I got my latex golves on.
Am I ready or what?

Wed, 10/16/2013 - 17:02 | 4062323 CPL
CPL's picture

Throw in a viking hat, some Popsicles, live ferrets, lemons and we've got a party.

Wed, 10/16/2013 - 17:08 | 4062350 IndyPat
IndyPat's picture

Naw, I think business accts, personal savings accts and money markets will be "invested" first. IRAs and 401ks will come next. Those already have hoops to jump through built in, takes a bit more
effort and time for the acct owner to yank them out but can be locked down the minute the gimp issues his executive order.

Wed, 10/16/2013 - 17:36 | 4062433 Widowmaker
Widowmaker's picture

Totally inaccurate.  People everywhere (particularly late 20's-30's based on appearances) are cashing out IRAs and 401's and paying off mortgages.

This trend is accelerating and has been all summer.

Seems even dipshit youth know the debt ship is sinking and fraud fiat ain't no good in the future.

Another way to describe this is loss of confidence or fear of something else.

Wed, 10/16/2013 - 18:29 | 4062641 IndyPat
IndyPat's picture

I stand corrected, because I did exactly that. I didn't realize I was even being particularly trendy in doing so. I also wrongly assumed most people wouldn't be motivated sufficiently, as I was, to jump through the hoops required to pull it off.
Thx for info.

Wed, 10/16/2013 - 19:51 | 4062438 CPL
CPL's picture

Roth IRA's and 401k's are built to be impossible to get money out of and dead easy to put it in.   Currently they are 'investment' accounts for many different types of people and businesses.  

Once it was a scheme of income avoidance where you and gov't believe that you really didn't make X for the year and remit the difference to claim the return whenever the gov't theft/tax year ended.

Today though, Roth IRA's and 401k's are structured to be a wrapper around locked in financial services. Huge amount of products and services that you can put under them.  If you check that legal document anyone signs on them, they can sell anything under it.  Including equities at market value of execution.  IRA's and 401k plans are just clever traps to mask money supply, they never had anything to do with savings.  Anyone can do that with a Mason jar or a piggy bank.

If using Europe as the roadmap, the savings are looted first and then everything else after is completely dysfunctional.  By the time anyone understood what happened, the national governments and banking infrastructure have already collapsed making it impossible to remove funds.  It's been mixed results, but there is definite evidence on where the hand goes first and the crash landing of each one.

It is always in the registered retirement plans first.  Always.  It hit a lot of people's Mum's and Dad's in the countries effected, they were 'millionaires' on a limited income.  Just like anyone with a fully vested and capitalized retirement plan. (lol what's that?)  Because that's sort of the point of investing and savings.

Wed, 10/16/2013 - 19:07 | 4062821 Alexandre Stavisky
Alexandre Stavisky's picture

The maiden with flaxen hair


Accurs'd be he that first invented fiat!
They knew not, ah, they knew not, venal  men,
How future be hit by pelting dilution
So stand we staggering like whipping aspen-leaf
Fearing the force of capriccio price disorder!
In what a lamentable case are they,
As nature had not given heritable honesty!
For financiers are clouts that all men despise,
Our money the pin that thousand Fagins seek to cleave:
Therefore in policy I think it good
To hide me in metal cousin close; a goodly stratagem,
And far from any man that is fiat’s fool:
So shall not I be known; or if I be,
They cannot take away my wealth from me.
Here will I hide it in this simple hole.


Wed, 10/16/2013 - 15:54 | 4061987 outamyeffinway
outamyeffinway's picture

On that letter, what's that "ending in" part regarding the accounts? Who does this apply to?

Wed, 10/16/2013 - 16:00 | 4062026 mccoyspace
mccoyspace's picture

I just got the same letter today.
I figure its an up sale to a more expensive account type if you want to send wires internationally.
The numbers in the first line are the last 4 digits of the account. The same number that's on checks.
Good thing bitcoin transactions have no concept of domestic vs international. Makes it more challenging to get fiat to the exchanges though.

Wed, 10/16/2013 - 16:12 | 4062094 spine001
spine001's picture

The ending part are the last four digits of the spe ific bank account. It is a general letter. It is not possible fom this type of info to gather how widespread the restrictions are.

Wed, 10/16/2013 - 17:50 | 4062504 Renewable Life
Renewable Life's picture

It's NOT an isolated event, BBVA Compass has been shutting down business and personal accounts that made INTL Wires to the Bank of Toyko MtGox and other foreign banks, wthout warning and without cause!! They are deathly afraid of the average citizens ability to get out of the USD!

Wed, 10/16/2013 - 15:41 | 4061898 SWRichmond
SWRichmond's picture

Currency end-game.  And nothing creeping about it.

Wed, 10/16/2013 - 15:44 | 4061915 TruthInSunshine
TruthInSunshine's picture

Add this with about three dozen other things, including Jamie Dimon's sudden and sanctimonious lecture on the hazards of excess sovereign debt, and something offal is a foot.

Wed, 10/16/2013 - 15:51 | 4061966 Bay of Pigs
Bay of Pigs's picture

Maybe the noose is tightening? Bank Holiday or Bail Ins, or both?

Wed, 10/16/2013 - 15:55 | 4061996 rehypothecator
rehypothecator's picture

Indeed.  What exactly is the "risk" of having customers wire their own money abroad, that needs to be "managed"?   Sorry, I forgot to quote "their own money." 

Try again: 

What exactly is the risk of having customers wire "their own money" abroad, that needs to be managed?  

Ahh, it all makes sense now. 

Wed, 10/16/2013 - 15:56 | 4062001 fonzannoon
fonzannoon's picture

The changes seem to only indicate they are being made to business accounts. Not personal. It also seems to indicate that this account has not had many wire transfers in the past, so should not be affected. 

It seems very specific, and specific within one institution. Hard to say it amounts to much.

Wed, 10/16/2013 - 16:00 | 4062025 Dr. Richard Head
Dr. Richard Head's picture

Hate to be a party pooper, but has anyone had a glance at the average balance of a over-taxed, under-paid average personal account?  Just saying.

Wed, 10/16/2013 - 16:07 | 4062063 Everybodys All ...
Everybodys All American's picture

I would not poo poo this as a one off and I will expect other banks to follow shortly. This has already happened in Europe a few years ago.

Wed, 10/16/2013 - 17:38 | 4062452 Town Crier
Town Crier's picture

The frog has been placed gently into cool water and the heat has been turned on low.

Wed, 10/16/2013 - 16:13 | 4062088 NoDebt
NoDebt's picture

The institutions we use don't have such restrictions, however, wire transfers are one of the biggest areas where fraud takes place.  

We had a client almost get taken and she didn't even know it.  It was one of the most sophisticated frauds I've ever seen perpetrated almost wholly over the internet.  Fraudster knew where they were vacationing, came up with a likely story why they needed money transferred, and a PERFECT SIGNATURE on the authorization.  Most people would have been fooled.  

We caught it because we had just instituted our new "high tech" transfer authorization procedure:  you have to call us personally on the phone if you're asking for a transfer into any account we don't already have an authorization set up.  We know the sound of every client's voice and we know the answer to a question about something very unlikely to be known by anyone else.  In short, we added HUMAN CONTEXT AND INTERACTION to our authorization process.  Hard to fake that with digital technology.

Wed, 10/16/2013 - 16:15 | 4062108 fonzannoon
fonzannoon's picture

so is this the dawn of capital controls nodebt?

or just everyone looking for the "thing" because we need to believe the whole thing is just about to crash?

Wed, 10/16/2013 - 16:37 | 4062175 NoDebt
NoDebt's picture

Fonz, by the time you realize you need to get your money out of harms way, it'll be too late.  The doors will all be locked, the windows will be barred and the room will quickly be filling with smoke.

It'll be the prom scene in 'Carrie'

But this isn't it.  When "it" happens you won't have to ask that question.

Wed, 10/16/2013 - 16:32 | 4062196 1C3-N1N3
1C3-N1N3's picture


First reaction was: there's gotta be some kinda "fraud scheme" (if defrauding fraudsters is fraud...) that's targeting this particular product using wire transfers.

@Fonz, you're becoming a bit of a heel, man. Can't say I blame you.

BTFATH. If no ATH, then BTFD until ATH. Then BTFATH.

Wed, 10/16/2013 - 16:47 | 4062266 fonzannoon
fonzannoon's picture

i'm well past heel my man. look at what has been pitched on here the last 6 months. 

Vaults out of gold

Syria is start of WW3

T-bills idicating end of the world.

now we have a letter from JPM regarding biz accounts extrapolated to mean Cyprus style capital controls. I'm sure i am missing 5 other things.

Wed, 10/16/2013 - 16:10 | 4062021 Urban Redneck
Urban Redneck's picture

Any corporate comptroller or treasurer that has accounts at JPM or any of its subsidiaries who is not involved in a bank run prior to the weekend should be drawn and quartered for gross negligence.

After all, if they claim they are incapable of managing the minimal risk associated with wire transfers from DEMAND DEPOSIT accounts, how the fuck do they claim the expertise to manage the risks associated with their derivatives positions at larger than worldwide GDP?

Wed, 10/16/2013 - 16:25 | 4062165 fonzannoon
fonzannoon's picture

Urban you are making it sound like JPM has a large amount of derivatives and a suspicious history with markets.....

Wed, 10/16/2013 - 16:48 | 4062269 knukles
knukles's picture

... and maybe been complicit in international money laundering schemes of drug, people, and arms monies, let alone the spiriting of huge amounts of cash by evil individuals from central banks and treasury accounts....

Damn good thing they didn't say they were stopping the wiring of gold and silver bullion. 

Wed, 10/16/2013 - 16:50 | 4062280 Urban Redneck
Urban Redneck's picture

They're chaining the fire exits and telling (only) the little guy he's SOL if he doesn't have the brains to get out now - it's sickening.

Wed, 10/16/2013 - 16:23 | 4062151 Encroaching Darkness
Encroaching Darkness's picture

Agreed, anyone who still has this kind of money (business or personal) in a bank of any kind is a victim waiting for the crime, whether it's the IRS deciding you're a "money launderer" or becoming a "bailed-in" stockholder in a worthlessly-reorganized holding company that used to be a bank. JPM is not long for this world anyway, once the Crunch resets the gold and silver prices they will be beyond insolvent, vanished beneath a revaluation black-hole event horizon....

Wed, 10/16/2013 - 16:37 | 4062227 davinci7_gis
davinci7_gis's picture

DO NOT Fight the FED!

Wed, 10/16/2013 - 21:10 | 4063299 stewie
stewie's picture

Tepper would it otherwise:  Balls To The Wall For All!

Wed, 10/16/2013 - 15:38 | 4061885 Groundhog Day
Groundhog Day's picture

Can't have cracks in the fortress balance of other people's money now can we Jamie "that's why i'm richer then you" Dimon.

Wed, 10/16/2013 - 16:31 | 4062199 El Oregonian
El Oregonian's picture

It only gets bitter from here.

Wed, 10/16/2013 - 17:18 | 4062378 Possible Impact
Possible Impact's picture

Use "Cling free" as your Social Fabric softener. That should help...


Wed, 10/16/2013 - 15:35 | 4061877 camaro68ss
camaro68ss's picture

bail ins bitchez. Banks win, you lose EVERYTHING

Wed, 10/16/2013 - 15:56 | 4062000 in4mayshun
in4mayshun's picture

Much less worrisome when you've already moved your assets out of banks.

Wed, 10/16/2013 - 16:04 | 4062040 Dr. Richard Head
Dr. Richard Head's picture

AMEN to that.  2008/09 scared the Bernanke out of me.  Other than daily expenses needed for day-to-day, I gots nothing in those bank bitchez, BITCHEZ!!!!

Wed, 10/16/2013 - 15:39 | 4061893 JailBank
JailBank's picture

JPM needs $20 billion to set aside for next quarters legal fees.

Wed, 10/16/2013 - 15:50 | 4061960 Jumbotron
Jumbotron's picture



LIES......DAMN LIES......I TELL YA !!!!


<>.....damn sarc off button....sticking again.

Wed, 10/16/2013 - 15:54 | 4061985 SpykerSpeed
SpykerSpeed's picture

No International wire trasnfers?  Bitcoin users unaffected.

Wed, 10/16/2013 - 16:45 | 4062259 Everybodys All ...
Everybodys All American's picture

I've seen this happen to people in Europe and there is no doubt this is a warning shot. For those who have other options I'd expect a massive amount of movement out of Chase accounts.  In Ireland the authorities essentially closed all outflows to foreign accounts.

Wed, 10/16/2013 - 16:55 | 4062294 centerline
centerline's picture

They are slowing but surely closing in the perimeter.  The great money hunt.  Gonna find that capital hiding in the shadows and clobber it.

Deflation bitches.

Wed, 10/16/2013 - 18:40 | 4062535 Urban Redneck
Urban Redneck's picture

in regione caecorum rex est luscus

and the key to winning the deflation game is staring everyone in the face...

Wed, 10/16/2013 - 19:39 | 4062918 Calmyourself
Calmyourself's picture

Translation of the second line would be helpful

Thu, 10/17/2013 - 02:51 | 4064064 Urban Redneck
Urban Redneck's picture

In a credit crisis, the crappy one-eyed monster that they put on the back of the dollar bill for the debt serfs will be king.

Thu, 10/17/2013 - 00:24 | 4063934 Dubaibanker
Dubaibanker's picture

While it may be true that JPM, Ally Bank and HSBC among probably many others, are restricting outward 'international' payments, however, it seems to be related to the Dodd Frank Act under which the CFPB is asking banks to allow cancelling a remittance, provide more details to the remitter etc and has been going on since 2011 or 2010 and has been in the public domain. I am trying to read it here but it is too long winded. If anyone else may read in detail and comment on this rule, will be great for all to understand where all this is coming from.

If the rule is costly or cumbersome, then the banks will certainly stop the service and clients will be forced to find alternates. However, it all seems so much overreaching and will certainly impact trade. This will be playing right into China's hands. I think maybe China has a hand in all this and for the amount of money they have lent to USA, they may be asking for transition into a CNY based world in return for not selling US bonds or not refraining from buying US assets.

Section 1073 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) [1] mandates a new comprehensive consumer protection regime for remittance transfers sent by consumers in the United States to individuals and businesses in foreign countries. The Bureau of Consumer Financial Protection (Bureau) is publishing a final rule (January 2012 Final Rule) elsewhere in today's Federal Register to implement the new regime. The Bureau is publishing this notice of proposed rulemaking to seek comment on whether to provide additional safe harbors and flexibility in applying the final rule to certain transactions and remittance transfer providers. The Dodd-Frank Act, which was enacted July 21, 2010, amends the Electronic Fund Transfer Act (EFTA) [2] to create a multi-faceted regime governing most electronic transfers of funds sent by consumers in the United States to recipients in other countries. For covered transactions conducted by “remittance transfer providers” as defined by the statute, the regime requires: (i) The provision of disclosures concerning the exchange rate and amount to be received by the remittance recipient, prior to and at the time of payment by the consumer for the transfer; (ii) Federal rights regarding transaction cancellation periods; (iii) investigation and remedy of errors by remittance transfer providers; and (iv) standards for the liability of remittance transfer providers for the acts of their agents. Authority to implement the new Dodd-Frank Act provisions transferred from the Board of Governors of the Federal Reserve System (Board) to the Bureau effective July 21, 2011. [3]

Thu, 10/17/2013 - 03:57 | 4064111 Urban Redneck
Urban Redneck's picture

Thanks for the link.

It's not that complicated, and the Dumb-Fuck Act is only a justification for what they are actually doing (nothing in Reg E then or now about physical cash). And anyone who thinks Senator Pocahontas has an IQ above that of a leech or the consumer's best interest at heart is a fucking retard.

Reg E didn't used to cover bank wires only ATM/Debit/ACH transactions - so there is a lot of tinkering under the hood that was required to get this up and running, but the upshot is everyone PAYS for the consumer protection now being afforded to Rex Tillerson should he fall victim to some Nigerian scammer peddling bony light, and no one else gets the protection because they aren't offered the service in the first place. Meanwhile the State gets to tout "consumer protection" as it is actually implementing capital controls and throwing gasoline on a fire in the banking industry.

These fascists could eventually try to ban the use of paper money under the guise that there is no error/dispute resolution process (that they CONTROL) once you hand someone the money (outside of the corrupt judiciary- which is controlled by a different and competing set criminals) - and the idiot masses are dumb enough to fall for it.

Thu, 10/17/2013 - 12:32 | 4065376 Dubaibanker
Dubaibanker's picture

These are some of the silliest reasons I have ever heard to block remittances (protect the public, my ass!). Why now, why after 50 years after SWIFT became operational and every single client knows exactly what they are sending and to who. Fraud needs to be protected with verification, which the whole world does, maybe not in the US as diligently. Online banking, SMS banking and smartphone banking is NORMAL in many countries outside the US and we have never heard any more frauds today than 20 years ago! Today banks ask 5 questions instead of 2 questions ten years ago for verification. We receive One Time passowrd on the bank registered mobile when money leaves. We receive SMS alerts when a debit or a credit comes to an account. We receive SMS alert when credit card is used. What nonsense is this Dodd Frank act?

They saw this coming years ago and are blocking it gradually.

The Govt cannot say that they did not know what the outcome of Dodd Frank or FATCA will be. They know exactly what they are doing!

What surprises me is that FATCA has not yet been implemented but this remittance rule got implemented and smacks of controlling the depletion of cash and money in the US banking system.

Thu, 10/17/2013 - 15:13 | 4066202 Urban Redneck
Urban Redneck's picture

Since I don't use JPM in Switzerland it didn't occur to me but I would assume that JPM in both Switzerland and the Emirates ALREADY provide a receipt to customers which documents the wire transfer fees, exchange rate used, and net amount of transfer - which is ALL that the regulation is really asking for (given the exceptions & loopholes in the reg). The refund request/dispute process is a sick joke since the customer is out of luck if the funds have been "collected" or withdrawn on the receiving end- so I would assume all that is required under the new regulations is to use the existing SWIFT MT 192 message to send a request for cancellation.

If they was ANY truth behind their assertions of rationale JPM would simply jack up the international wire fee $5 to $10, blame it on the reg and in the process boost NIM.

Wed, 10/16/2013 - 15:33 | 4061863 IndicaTive
IndicaTive's picture


Wed, 10/16/2013 - 16:04 | 4062043 Everybodys All ...
Everybodys All American's picture

Greece, Ireland, etc. Thanks Bernanke you have fucked this country ...

Wed, 10/16/2013 - 16:41 | 4062236 El Oregonian
El Oregonian's picture

Yes, soon we will be going from American to Americant.

Wed, 10/16/2013 - 15:34 | 4061865 Zer0head
Zer0head's picture


Wed, 10/16/2013 - 16:24 | 4062158 WillyGroper
WillyGroper's picture

Jamie or S & P?


Wed, 10/16/2013 - 15:34 | 4061866 slotmouth
slotmouth's picture

Preparing to pull a Cyprus.  You can check in anytime you like, but you can never leave.

Wed, 10/16/2013 - 15:35 | 4061872 fooshorter
fooshorter's picture

such a lovley place...

Wed, 10/16/2013 - 15:38 | 4061886 Tsar Pointless
Tsar Pointless's picture

Such a lovely face.

Wed, 10/16/2013 - 16:23 | 4062148 IndyPat
IndyPat's picture

We haven't had that spirit here since....1913?

Wed, 10/16/2013 - 15:47 | 4061867 hedgeless_horseman
hedgeless_horseman's picture



I have seen this movie before.  Jane Fonda gets fucked...

...and in the end, so do we.

  1. Jawboning by the President.  Check.
  2. Selling gold.  Check.
  3. Capital Controls.  Check.

"That will really be the end of all markets.  That will really be the finish."

Wed, 10/16/2013 - 15:53 | 4061954 AlaricBalth
AlaricBalth's picture

Rollover : Maxwell Emery (evil banker) played by Hume Cronyn: Listen me out! Money, capital, has a life of its own. It's a force of the nature like gravity, like the oceans, it flows where it wants to flow. This whole thing with the Arabs and gold is inevitable, we're just going with the tide. The only question is whether you wanna let it go like an unguided missile and raise hell or whether you wanna keep it in the hands of responsible people, keep it channable, keep it quiet.

Wed, 10/16/2013 - 15:53 | 4061981 fonzannoon
fonzannoon's picture

I used to be able to find the market selloff scene on youtube...where everything tanked except gold. Very hard to find it now.

Wed, 10/16/2013 - 16:05 | 4062047 AlaricBalth
AlaricBalth's picture

Trader: Gold just went over $2000

Head of Desk: By tonight that will be cheap.

Starts at 4:35

Last night demonstrators burned American currency in front of the White House

Wed, 10/16/2013 - 16:51 | 4062283 knukles
knukles's picture

So Jane's a topper, eh?
She really oughta shave before sex.

Wed, 10/16/2013 - 15:34 | 4061868 TeamDepends
TeamDepends's picture

If you are naive enough to still have large amounts in TBTFs, you deserve to get fleeced.

Wed, 10/16/2013 - 15:34 | 4061869 The Proletariat
The Proletariat's picture

Who is the idiot that banks with Chase?

Wed, 10/16/2013 - 15:37 | 4061884 NotApplicable
NotApplicable's picture

Well, it's not like there's such a thing as an honest bank, anymore. Those were taken out long ago.

Wed, 10/16/2013 - 15:35 | 4061874 hmmmstrange
hmmmstrange's picture

Can you send bitcoins internationally?

Wed, 10/16/2013 - 15:56 | 4062006 SpykerSpeed
SpykerSpeed's picture

You sure can.  It costs the same to send $7,000,000 worth of Bitcoins as it costs to send $7 worth of Bitcoins.  A fraction of a cent.  You can send them to your buddy Phil up the street or your pal Ahmed in a cave in Afghanistan.  No government can stop you.

And it's impossible to counterfeit or inflate Bitcoins.  It's impossible for governments to detect or confiscate them.

Now are you starting to see why Bitcoins are the future?

Wed, 10/16/2013 - 16:01 | 4062033 zipit
zipit's picture

Patriot Act

Wed, 10/16/2013 - 16:22 | 4062137 AugmentedFourth
AugmentedFourth's picture

...has absolutely NOTHING to do with bitcoin.

The only time it might come into play is if when you exchange into another currency and use a banking institution for that currency that falls under its auspices.

Wed, 10/16/2013 - 16:22 | 4062139 Thisson
Thisson's picture

Nonsense.  Bitcoins are vulnerable to a 51% attack.  Bitcoins are not safe.

Wed, 10/16/2013 - 16:42 | 4062244 AugmentedFourth
AugmentedFourth's picture

Who's arguing for a single perfect solution here? It's about relative safety. NO store of wealth is without drawbacks.

The 51% vulnerability is not something to lose much sleep over if you understand the details and implications. 

Of course, I'm not arguing that it would be wise to store your entire wealth in bitcoin eaither. It's just another tool to have in your arsenal.

Wed, 10/16/2013 - 16:56 | 4062297 AgentZeroM
AgentZeroM's picture

There are lots of reasons why this is a non-issue. First of all, 51% of 2 petahashes is a fucktion of computing power. Second of all, anyone adding another 2 petahashes of computing power to the network has a lot more incentive to mine cooperatively than destructively. Thirdly, 51% attacks are easily mitigated. Read the wiki on the specific vulnerabilities and countermeasures.

Wed, 10/16/2013 - 23:53 | 4063881 SpykerSpeed
SpykerSpeed's picture

You (and many others) don't understand what a 51% attack is, or why it's not a real threat.

Wed, 10/16/2013 - 16:08 | 4062068 AugmentedFourth
AugmentedFourth's picture

In reality, You don't need to send your bitcoins anywhere. (Uless you're trying to excahge or gift them) Technically a record of them exists on every single computer that is cooperatively running the bitcoin protocol.

Accessing them from country X vs country Y makes no difference. Except obviously for the availability of exchange-markets/mechanisms or goods to use them with.

Wed, 10/16/2013 - 15:35 | 4061876 One And Only
One And Only's picture


Eat your fuckin peas and shut up

Wed, 10/16/2013 - 15:36 | 4061879 Handful of Dust
Handful of Dust's picture

It's always so cumbersome withdrawing over $50k from the ATM anyway.....

Wed, 10/16/2013 - 15:38 | 4061887 Mordenkainen
Mordenkainen's picture

The limit will be $50k per month, not per transaction.

Wed, 10/16/2013 - 15:43 | 4061913 DosZap
DosZap's picture

The limit will be $50k per month, not per transaction.




Wed, 10/16/2013 - 15:59 | 4062018 underman
underman's picture

$50k per month - total cash deposits and withdrawals.  So if I own a Taco Shop and pull in $1700/day in cash, that's $50k/month in deposits.  I can't withdraw anything!!

Wed, 10/16/2013 - 15:38 | 4061891 prains
prains's picture

Especially in 5's

Wed, 10/16/2013 - 17:46 | 4062478 Widowmaker
Widowmaker's picture

Jokes on you, this is about deposits, too.

Your fraud-fiat ain't no good anymore.  But "their" new electronic fraud is!

Book it.

Wed, 10/16/2013 - 15:37 | 4061881 MiltonFriedmans...
MiltonFriedmansNightmare's picture

They are only protecting us from ourselves. Thanks Jamie, you sniveling little ratfaced git.

Wed, 10/16/2013 - 15:37 | 4061883 Tsar Pointless
Tsar Pointless's picture

Coming soon to a fascist hellhole near you.

BTW, if anybody here likes to frequent HuffPo and annoy everybody who loves to play the "Blue Team vs. Red Team" game, I go by the name "antifascist". Its fitting, no?

Wed, 10/16/2013 - 15:38 | 4061889 0b1knob
0b1knob's picture

All of your cash is belong to us....

Wed, 10/16/2013 - 17:07 | 4062346 All_Your_Base
All_Your_Base's picture

Someone set you up the bomb

Wed, 10/16/2013 - 15:38 | 4061890 Reptil
Reptil's picture


Wed, 10/16/2013 - 15:53 | 4061904 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Paper gold market, mortages, EBT probably next, now this. This is an orderly wind down of JPM before they collapse it outright. They need to keep it on life support just long enough to pick the carcass clean of anything left of value first before declaring it dead. JPM is the sacrificial lamb since it will cause the most pain to main street and the economy by collapsing it. None of the other banks will cause as much pain because they don't hold enough main street money in their systems unlike JPM. This is their spiteful fuck you and way to keep the money from leaving too fast until the process of stripping the carcass clean is done. The scam continues either way they just shuffle the assets and people involved one of the other shell banks.

Wed, 10/16/2013 - 15:42 | 4061909 earnyermoney
earnyermoney's picture

Manage the risk of these types of transactons ...


Bank run on the horizon?

Wed, 10/16/2013 - 15:44 | 4061916 jay28elle
jay28elle's picture

Got the same thing from USAA.

Wed, 10/16/2013 - 15:50 | 4061959 SgtShaftoe
SgtShaftoe's picture

Shit! really?  I should probably start reading all that crap they send me instead of automatically throwing it all away. 

Wed, 10/16/2013 - 15:44 | 4061917 SillySalesmanQu...
SillySalesmanQuestion's picture

Average people still have that kind of money left at a JPM account....hmmmm.

Wed, 10/16/2013 - 15:46 | 4061942 MSO
MSO's picture

Isn't sending an international wire transfer from a US account now subject to the new Dodd/Frank regulations?

Wed, 10/16/2013 - 15:54 | 4061984 kjlowther
kjlowther's picture

Yes, more onerous reporting requirements to send and receive intl transfers. Deemed to protect the consumer - fucked if I know how - I've been doing so for years without issue.

Wed, 10/16/2013 - 15:59 | 4062024 zipit
zipit's picture


Wed, 10/16/2013 - 16:04 | 4062041 Winston Churchill
Winston Churchill's picture

Been in force since Jan.1st.

Every bank now wants to know the reason for any intl. wire in any amount.

Seems to take a little longer being executed from US now, as if it has to be approved

before sending.

The noose is definitely tightening.

Move it or lose it.

Wed, 10/16/2013 - 15:48 | 4061948 Save_America1st
Save_America1st's picture


Wed, 10/16/2013 - 16:08 | 4061953 Bobbyrib
Bobbyrib's picture

This is what it's all about:

I believe JP Morgan and USAA (jay28elle) are putting into place cost saving measures. Less reports to fill out..

EDIT: If the Fed lent you money that you can use as your reserves and PAID YOU INTEREST ON IT, would you need your customer's money if taking it could potentially cost you money?

Edit again: Expect JP Morgan to announce layoffs in its compliance department.

Wed, 10/16/2013 - 16:09 | 4062074 Dr. Richard Head
Dr. Richard Head's picture

Unless the bank's collateral is ryhopothicated in non-existent derivatives that dwarf any true "assets" on the balance sheets.  That is, of course, assuming real accounting was required of these thieves.  I guess you are right in the end....or not.

Wed, 10/16/2013 - 16:12 | 4062091 Bobbyrib
Bobbyrib's picture

Multi-national corporations don't think long term, everything is short term. They probably believe the Fed can print enough money to bail them out should those derivatives go sour. We both know by that time, the dollar is wall/toilet paper.

Wed, 10/16/2013 - 15:54 | 4061961 Mercury
Mercury's picture

For whatever reason, JPM has decided that after November 17, 2013, it will halt the use of international wire transfer...

This isn’t JPM specific Tyler it’s an implementation of a Dodd-Frank requirement.  I think you’ll still be able to effect many similar such international transfers via a checking account but I’m not sure on that yet.


Wed, 10/16/2013 - 15:56 | 4061997 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Can you point to where in the act it stated and if that is the case we should be seeing similiar letters to clients at other banks soon if not already. I'm not saying that this isn't the case but this is hard evidence and all we have to base an opinion on so far.

Wed, 10/16/2013 - 16:02 | 4062011 SgtShaftoe
SgtShaftoe's picture

Can you cite the requirement?  This seems quite onerous.  It appears to include checking accounts: Chase BusinessSelect Checking and Chase BusinessClassic accounts in addition to savings accounts which are restricted from any wire transfer activity over 50K/month including domestic transfers:

Wed, 10/16/2013 - 16:45 | 4062262 WillyGroper
WillyGroper's picture

Wouldn't you think the document would reflect a mandate from DF?

Wed, 10/16/2013 - 15:59 | 4061965 booboo
booboo's picture

So far so good, they are following the Marxist playbook to a T, Obama will next demand a huge tax increase on the very wealthy with no more deductions/no place to hide on top of the unACA tax increase, congress will play the battered wife and spread her legs, I don't think we make it to the midterms before the suspension of the Constitution. Too much power to risk being put in play in congressional elections that would have been blow outs. He is a lame duck and he is going to burn the house down in the next three years. Prepare accordingly. Stage three of the "Fundamentally Change America" is in play and his wealthy liberal donors are next on the list for a good bitch slapping.

Wed, 10/16/2013 - 16:08 | 4062071 Winston Churchill
Winston Churchill's picture

You're not going to like the Pol Pot variation on that theme.

Wed, 10/16/2013 - 15:57 | 4062008 Trucker Glock
Trucker Glock's picture

In other news...

Jury Says Cuban Did Not Commit Insider Trading

Fuckers waste a bunch of money investigating/prosecuting and can't convict, but refuse to pursue a slam-dunk like Corzine.

Wed, 10/16/2013 - 16:11 | 4062085 Everybodys All ...
Everybodys All American's picture

It's total lawlessness for the well connected. The SEC has become nothing more than a road bump except if your a little guy they'll put you out of business for a clerical error.

Wed, 10/16/2013 - 17:07 | 4062345 Harry Dong
Harry Dong's picture

Plus they'll take your two FULL days of productive work to look over your accounts even if your a part time FA who handles less than 1/2mill.

Wed, 10/16/2013 - 16:02 | 4062036 Bennie Noakes
Bennie Noakes's picture

You can deposit any time you like. But you can never withdraw.

Wed, 10/16/2013 - 16:05 | 4062049 Bobbyrib
Bobbyrib's picture

Reread the letter where it says "cash Activity limits."

Wed, 10/16/2013 - 16:59 | 4062313 koncaswatch
koncaswatch's picture

I think there's a song in there somewhere... Hotel California

'Relax' said the night man,
'We are programmed to receive.
You can check out any time you like,
But you can never leave!'

Wed, 10/16/2013 - 17:51 | 4062509 Widowmaker
Widowmaker's picture

This is an assault on paper fiat.

They are banning physical currency in any business larger than a corner lemonde stand.

Wed, 10/16/2013 - 16:06 | 4062052 Seize Mars
Seize Mars's picture

Socialism always - ALWAYS culminates in death camps. Every time. No exceptions.
Get ready. This is no fucking joke.

Wed, 10/16/2013 - 16:09 | 4062076 SgtShaftoe
SgtShaftoe's picture

"Totalitarianism always - ALWAYS culminates in death camps. Every time. No exceptions.
Get ready. This is no fucking joke." -fixed


Yes, it tends to drift that way certainly.  Hopefully we'll be able to have a East German or USSR style collapse.  That's probably best case, possibly over-optimistic.  A man's gotta dream right?

Wed, 10/16/2013 - 16:08 | 4062069 El
El's picture

Seems to me this would have a pretty big impact on businesses (particularly smaller businesses) engaging in international trade. If you have $25,000 worth of deposits and want to wire $25,000 to your vendor in the East've hit your limit.

I'm looking for a non-conspiracy theory explanation, but so far, it eludes me.

Wed, 10/16/2013 - 16:09 | 4062077 Quantum Nucleonics
Quantum Nucleonics's picture

This isn't capital controls, per se.  This is a direct result of Dodd Frank, and the IRS's holy war against anyone holding assets overseas.  Dodd Frank places onerous reporting requirements on foreign institutions that accept US deposits.  The IRS requires reporting of transactions by June 30th each year - the letter references this same date.  Justice, Treasury, and the IRS can't imagine why anyone would want to move money outside the US unless you are doing something illegal.  To them, you are either a drug dealer or a terrorist - or both.

Wed, 10/16/2013 - 16:13 | 4062097 SgtShaftoe
SgtShaftoe's picture

You couldn't import a shipping container of dog shit for less than $50K.  I'm not sure how import/export is supposed to work with these regs unless you get a special permission slip from the compassionate state organs. 

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