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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Gene Parmesan's picture

It's only going to get worse from here.

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

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?

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.

Pladizow's picture

Guess again!

Avalanches begin as a snow flake.

Fukushima Sam's picture

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

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?

tickhound's picture

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



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. 


Mister Ponzi's picture

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

iinthesky's picture

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

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…

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..

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.

jbvtme's picture

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

SilverIsKing's picture

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

knukles's picture

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


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

Chupacabra-322's picture

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

OpenThePodBayDoorHAL's picture

Bring out the Gimp

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

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.

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...

max2205's picture

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

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.

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.

knukles's picture

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

CPL's picture

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

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.

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.

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.

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.

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.


outamyeffinway's picture

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

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.

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.

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!

SWRichmond's picture

Currency end-game.  And nothing creeping about it.

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.

Bay of Pigs's picture

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

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. 

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.

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.

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.