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Banks Warn Fed They May Have To Start Charging Depositors
The Fed's Catch 22 just got catchier. While most attention in the recently released FOMC minutes fell on the return of the taper as a possibility even as soon as December (making the November payrolls report the most important ever, ever, until the next one at least), a less discussed issue was the Fed's comment that it would consider lowering the Interest on Excess Reserves to zero as a means to offset the implied tightening that would result from the reduction in the monthly flow once QE entered its terminal phase (for however briefly before the plunge in the S&P led to the Untaper). After all, the Fed's policy book goes, if IOER is raised to tighten conditions, easing it to zero, or negative, should offset "tightening financial conditions", right? Wrong. As the FT reports leading US banks have warned the Fed that should it lower IOER, they would be forced to start charging depositors.
In other words, just like Europe is already toying with the idea of NIRP (and has been for over a year, if still mostly in the rheotrical and market rumor phase), so the Fed's IOER cut would also result in a negative rate on deposits which the FT tongue-in-cheekly summarizes "depositors already have to cope with near-zero interest rates, but paying just to leave money in the bank would be highly unusual and unwelcome for companies and households."
If cutting IOER was as much of an easing move as the Fed believes, banks should be delighted - after all, according to the Fed's guidelines it would mean that the return on their investments (recall that all US banks slowly but surely became glorified, TBTF prop trading hedge funds since Glass Steagall was repealed, and why the Volcker Rule implementation is virtually guaranteed to never happen) would increase. And yet, they are not:
Executives at two of the top five US banks said a cut in the 0.25 per cent rate of interest on the $2.4tn in reserves they hold at the Fed would lead them to pass on the cost to depositors.
Banks say they may have to charge because taking in deposits is not free: they have to pay premiums of a few basis points to a US government insurance programme.
“Right now you can at least break even from a revenue perspective,” said one executive, adding that a rate cut by the Fed “would turn it into negative revenue – banks would be disincentivised to take deposits and potentially charge for them”.
Other bankers said that a move to negative rates would not only trim margins but could backfire for banks and the system as a whole, as it would incentivise treasury managers to find higher-yielding, riskier assets.
“It’s not as if we are suddenly going to start lending to [small and medium-sized enterprises],” said one. “There really isn’t the level of demand, so the danger is that banks are pushed into riskier assets to find yield.”
All of the above is BS: lending has never been a concern for the Fed because if it was, then one could scrap QE right now as an absolute faiure. Recall that as we showed recently, the total amount of loans and leases in commercial US banks has been unchanged since Lehman, with the only rise in deposits coming thanks to the fungible liquidity injected by the Fed.
Furthermore, contrary to what the hypocrite banker said that "the danger is that banks are pushed into riskier assets to find yield”, banks are already in the riskiest assets: just look at what JPM was doing with its hundreds of billions in excess deposits, which originated as Fed reserves on its books - we explained the process of how the Fed's reserves are used to push the market higher most recently in "What Shadow Banking Can Tell Us About The Fed's "Exit-Path" Dead End."
What the real danger is, is that once the Fed lowers IOER and there is a massive outflow of deposits, that banks which have used the excess deposits as initial margin and collateral on marginable securities to chase risk to record highs (as JPM's CIO explicitly and undisputedly did) that there would be an avalanche of selling once the negative rate deposit outflow tsunami hit.
Needless to say, the only offset would be if the proceeds from the deposits outflows were used to invest in stocks instead of staying inert in some mattress or, worse (if only from the Fed's point of view) purchase inert assets like gold or Bitcoin.
Which brings us back to the first sentence and the Fed's now massive Catch 22: on one hand, shoud the Fed taper, rates will surge and stocks will once again plunge, as they did, in early summer, just to teach the evil, non-appeasing Fed a lesson.
On the other hand, should the Fed cut IOER as a standalone move or concurrently to offset the tapering pain, banks will crush depositors by cutting rates, depositors will pull their money from banks en masse, and banks will have no choice but to close on a record levered $2.2 trillion in margined risk position.
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“A deposit insurance system is like a nuclear power plant. If you build it without safety precautions, you know it’s going to blow you off the face of the earth. And even if you do, you can’t be sure it won’t.”
—L. William Seidman, Chairman, FDIC
A bail-in by any other name would smell as sweet. Didn't Shakespear say that?
They can't make money? I thought it was their job to loan money? So they are sitting on the assets collecting 'welfare' from the Fed instead of loaning it out at 18% to credit card customers?
If they are going to be corporate welfare bums, then they shouldn't get a free ride from the Fed. As much as I hate debt, it is even worse for the banks to be able to borrow at these rates and collect welfare. The citizens of the USA should not be paying these banks to sit around idle all day (didn't we used to say that to teenagers?). They should get out there and work for their money like the rest of us.
We are helping them help us, you see. We couldn't survive without them you know, so they are actually doing us a favor by robbing us blind, in order to save us from ever worse outcomes...fuckers.
Not only are they getting welfare but they got a big handout when the Fed bought up all their toxic mortgage crap at 100 cents on the dollar.
It's moves like these where you can actually see them squirm. The vast majority of people are in for a nasty surprise. It's a downward corkscrew, negative feedback loops are a real bitch.
Good news for PM and bitcoins then.
Definitely for PMs, I could see this being bullish for bitcoin as it would act much like a bank account. Only drawback is the volatility.
What about a solar flare shutting down the whole grid? Bitcoin would become bit-the bag and bought the farm.
No doubt. Think about no EBT if there was an EMP. Sounds like many would be SOL when TSHTF!
You don't want everything in just one thing. A bit of gold, a bit of cash, a bit of bitcoin ... as for a solar flare or emp, computers and electricity are far too useful for both ourselves and the 1%. They'll have both up and working before long.
And when they do, you'll have X stashed away on a usb key kept inside a faraday cage (http://www.thesurvivalistblog.net/build-your-own-faraday-cage-heres-how/).
It's like prepping for a camping trip; you want at least 3 ways to start a fire, eh?
PM and Bitcoin?
Go long horses, goats, pigs and anything that tastes like chicken. One derivative up from these categories is probably a good play too. Sharp knives, long guns, etc. But don't reach for that 2nd derivative.
Knowledge and skills are rarely mentioned.
You both make great points. Remember, knowledge and skills take time; START NOW! The internet has all the information you need and more. Start with basic survival skills and food production/preservation.
And that should give pause.
WIKI>
The ; United States of Cyprus...
Population- You Decide.
President - Bernard Maddoff
CEO- Eric Schmidt <google me>
CFO/VP - Alan Greenspans ghost
General Council - Eric "nutsac" Holder
VP/mediarelations.infinity - Joe Mama
FallGuy - anything With a horn, or named Bush...
S&P rated a buy until the next Fed. meeting.
Fuck you, pay me...
http://www.youtube.com/watch?v=5ydqjqZ_3oc
Like I have said banks and insurance companies have morphed into huge software companies that control a lot of money and access...this furthers that thought for sure as it's gonna be some algorithms on servers running 24/7 that will do this...The Attack of the Killer Algorithms...the charts you show above define no reason for this as they will do it because "they can"...
http://ducknetweb.blogspot.com/2013/04/banks-are-actually-just-software....
This was a good article about Bank of America...IT is business...see what they do, and yes it is an algorithmic business where the Quants model new formulas to get more money, their CIO talks about it here.
http://ducknetweb.blogspot.com/2013/09/it-is-business-states-cio-of-bank...
In my opinion, this is what restoring Glass Steagall is only a band aid as while the bill would give banks 5 years to restructure, they also get a bonus of 5 more years to call in the Quants to design models like this, to charge those who deposit so not enough teeth by far with Glass Steagall but about all we can hope for with low tech folks in Congress trying to fix high tech problems...government is always behind the 8 ball. They need to hire tech Quants that have worked on the other side so they can understand the technologies of how this works!
http://ducknetweb.blogspot.com/2013/07/glass-steagall-revival-presents-l...
'Bank of America' is about to be renamed 'Bank In America' ...
More like the Bank of Mine and Ours. There will soon nothing we can call our own except debt.
Maybe your property..until the government wants that too.
'Bank of America' is about to be renamed Fuck You Americans
bang'in America
'Bail In America'...
U.S. will give Israel, Saudis generous aid package in return for accepting Iran deal (Ch. 10)
So.. a few billions to Israel, a few billions to Saudi Arabia and a few billions to Iran... Obama giving money to enemies of America like it's going out of style.
the only enemy america has, is itself.
the only enemy america has is located within the beltway.
the sheep won't do anything and the smart people have their money already out.
But do you get money if you take on a loan? Because in that case, I WANT A MILLION!
Are you saying I ain't smart? Well if you have to put a fine point on it Ok, but still....bahhh..
Bank run? I know I will...
Will?
Once the stampede starts, it's too late.
He who panics first, panics best.
not needed but I'm willing to sit outside watching it while sipping on a coffee
Banks can't operate on money printed out of thin air if the money printing isn't really forever? I'm shocked I tell ya, shocked!
All that really matters are the Black Friday sales for crap we do not need and cannot afford. Mesmerized by all that could be while completely ignoring what is. That is the essence of hope and change.
Banks breaking bad; USD hit job.
Not only do they want to use your Money for .0001% to gamble in the Market. Now they want to charge you for the privledge of letting them gamble with your Money.
Would not have thought that up in a million years.
Bankster creativity has no bounds
What I find interesting is that the Banks offering Credit Card rollovers are now only giving 6 months instead of 1 year. Plus, the interest rate is 1% higher. So, instead of being able to roll over your Credit Card Debt from one Company to another for 3% for a year, it is now 4% for 6 months. Which would increase the 3% rate to 8% as you would have to roll it over twice in a year at a rate of 4% every 6 months.
Something tells me that they are going to slow the purchases soon and Banks are prepairing.
Gold will crash in coming weeks and months - whether you like it or not.
I'm warning of this since around mid of October - here. And so far I was spot on.
In December - possibly - the whole commodity complex is going to crash.
Could be wrong though.
Unlikely though.
If the Fed lowers IOER, the bullion banks may have to cover their short positions ... it could produce an explosive bid
Yep, it's only too bad that JPM now has a long position in gold big enough to corner the market. Shame. I'd sure like them to get it right in the head with the rest of those pricks.
Interestingly, the put/call ratio on $120 Dec 31 GLD is 6:1. Most options expire worthless. GLD at or above $120 would extract the most pain.
Um, "Banks Warn Fed They May Have To Start Charging Depositors..."
Bring it, morons.
The more they tighten their grasp, the more clearly the division between "us" and their sycophants becomes sharply delineated.
There is nothing that foments revolution like making things crystal fucking clear.
"There is nothing that foments revolution like making things crystal fucking clear."
BINGO!
And they are doing the hard work themselves. Pretty soon even Barry and all the money the industry has given him won't be able to protect them from the pitchfork crowd...
"The more they tighten their grasp, the more clearly the division between "us" and their sycophants becomes sharply delineated."
I thought I heard that before from some Rebel Princess, "The more you tighten your grip, the more star systems will slip through your fingers."
Well then, banks are officially, officially dead.
This is pretty funny, as they are proposing charging fees on deposits that aren't really there because they have stolen them. Sort of like a mugger sending you a "handling fee" after he mugs you. LOL
Guillotine maintenance tip #2: Use nailpolish or model-paint on the nail heads to protect from rust.
Yep I read that same tip in Guillotines for Dummies!
Everyone will become muslim overnight where usury is prohibited; the irony...
You need to read some shariah-compliant loan documents if you think Muslims don't have interest or usury for that matter. Of course they do.
DP
The lowly slaves are tapped out. Can't afford another payment on the list each month.
Haha seriously, this guy seriously overestimates the average checking or savings balance.
Just want to reiterate that I am serious.
"What the real danger is, is that once the Fed lowers IOER and there is a massive outflow of deposits, that banks which have used the excess deposits as initial margin and collateral on marginable securities to chase risk to record highs (as JPM's CIO explicitly and undisputedly did) that there would be an avalanche of selling once the negative rate deposit outflow tsunami hit."
can't they just replace the margin on the marginal securities with rehypothecated fed exchanged dollars for those fictional papers created by the banks from someone's books?
:)
The answer is simple, opt out and be your own bank.
What a fucking joke. How about running a more lean operation? There are plenty of inexpensive ways to have other deposit operations.
Bitcoin
so we are going to the point where hookers will be hiring pimps and smack him around when there are no customers
Its funny that no one has pointed out that "your" money is really THEIR MONEY. It says it right on the fiat. They took Gold and Silver in the 1930's for their paper and never returned it. Anybody remember gold or silver certificates? Now it just says FEDERAL RESERVE NOTE on it. You might think its yours but its not.
Deflation. The Fed can't print borrowers.
Bingo.
Check this write-up out...
Deflation, A Stock Market Crash And Then Christmas
http://www.silverbearcafe.com/private/11.13/christmas.html
I invest in CASH and made 50%! Yeah, I am digging that the most.
Quite frankly, we don't need all these banks and central banks.
We can easily replace them with p2p banking, crowdsourcing, etc. and have a perfectly functioning society and economy. Things would be much better, safer and sane.
These big banks are a buch of mastodonts that do not belong to this era. Parasitic and unneccessary.
Damn, that is really a good idea. TPTB would pitch a whiny bitch fit wouldn't they? And make criminals out of the sensable.
New income stream! Someone at the top will be getting a bonus.
Bankers: "We don't need no f**king deposits. We got da Feds."
Where is that link to that IMF paper about the broken sequence between deposits and loans when you need it?
Reminds me of the scene from Blazing Saddles when the black sheriff puts the gun to his head to get away from the crowd that wants to lynch him saying nobody moves or the nigger gets it.
https://www.youtube.com/watch?v=Z_JOGmXpe5I
I've got news for you. I don't fucking use banks so how are they going to charge me?
Over!
"I don't fucking use banks "
That's nice. However, the banks use *you* whether you wish or not.
Over and out...
Fuck You!
Just a scare tactic. The banks know there would be a bank run. Just trying to push the fed away.
What is the concern?
No lunatic/anti-semetic theories, please.
I'll take a stab at it:
1) LOBBY gummint / write legislation
2) PROFIT from gummint printing
3) PROPAGANDISE a compliant and grateful peasantry, in preparation for more 'legislation'
are the banks' concerns, in that order if not that priority.
Now, if you please to explain why we should come up with any pro-seme theories around here. An anti-semetic rant would seem appropriate on this article, if you're one of the banksters' unwilling 'clients' anyway:
http://www.urbandictionary.com/define.php?term=seme
1.seme: The dominant partner. Interestingly, though in most places the dominant partner gives both anal and oral, in Japanese society, it is more normal for the seme to give head to his uke. My boyfriend keeps wanting me to be seme.
2.Seme: Japanese for the partner on top. Used in conjunction with uke and yaoi.I'll have no skimming by banks of my bitcoin customers. None of it.
"There really isn't the level of demand" says it all. Beware a TBTF with money to lend and no one wants to borrow. The money will find something to do. Perhaps that is the real story of the past few years.
I just checked the creditkarma website for my updated credit rating. To my surprise 76% of the users of that site have a credit rating below 699. 54% have a rating below 639. What bank is going to lend out $ with those scores. Scores are issued by experian.
thats supply though, not the lack of demand that they mentioned (unless they meant less qualified borrowers demand less loans)
Bought a Christmas tree today. 20% increase in the price. Bought it from the same place. Next year I will not be buying a tree.
Who knew my parents plastic tree was an inflation hedge? I don't buy a tree, I go to their house.
Next year - if the gang-bangsters have their way - you might be eating the tree, for Christmas dinner.
LoL!! Yeah, charge me to keep my money bitches. Even the most brain dead person will figure this one out fairly quickly.
Bitcoin users not [negatively] affected
Bollocks. The secret shareholders of the Fed also run the biggest banks. One runs cover for the other in a very lucrative CONfidence trick.
Bail-ins, negative interest rates, charging depositors, capital controls and FX controls are coming, and the puppet masters merely put up a show of controversy, as they set about impoverishing the many for the few, as per ususal. Bastids. No moral compass whatsoever. Bunch of sociopaths and psychopaths employing humans to put lipstick on their pig.
Only one small consolation this weekend. WWIII is postponed for now. Zbigniew Brezinski et al got their way, and ceased the bombing of Syria on the way to Iran after Putin's leadership proved to be resolute in word and action.
A multi polar world means negotiating with Iran and China, despite warmonger Israel/Saud/zionists led by Britain's establishment.
So would banks pay me to borrow their money?
If you have a credit card with a cash back feature and pay it off each month, yes, they will pay you to borrow their money.
Well, sure, if you play it right you can get away with that. However the very instant you miss a payment (after they play their games), your rates will jump up to 30%+. Negating any "cash back" you have gotten. They play the waiting game. Maybe not today, maybe not tomorrow, but someday, all it takes is an emergency or a busy week where you forget, or any number of random things. Your cash back is being taken from the pockets of those without the ability to pay back every single month in full. Gotta love redistribution of wealth.
They can play their waiting game all they want with me. I never charge more than what I can pay back each month. The money is already in the checking account. As far as an emergency goes, that is what a rainy day fund is all about.
Your issuing bank just hasn't gotten around to shrinking its grace period and implementing two-cycle average daily balance-based finance charges, yet. Enjoy it while it lasts!
I will then just close the account. No skin off my back. That's why the banks won't do what you think they might.
Having an "emergency fund" in america is increasingly a luxury which most cannot afford.
I would rather that banks change back to utilities and pay their executives (all of them from CEOs to salesman) like public utilities.
That will remove the need for them to have such a high cost structure that they need to steal interest from me, John Q Public.
Meanwhile, my accounts incur annual fees of $0 and pay out a reasonable 5~6% interest without any risk.... oh, and I enjoy free instant transfers, instant, as in I don't have to wait 3-5 (or more days) to use my own damn money.
surfing amazon looking for a wall safe...
Sign of things to come For the Ponzi Central Bankster Cartel. Take your US dollars and covert them before it's too late.
US of Zimbabwe.
Federal Reserve of the Banks, by the Banks and for the Banks.
The rest of the country and its citizens be damned. The main aim of the political class and the central bankers around the world is to create one bubble after another for the zombie bankers to feed on. The majority of the population who actually work hard to earn their living by engaging in productive work have to pay the price by either loosing a majority of their earnings in the form of taxes, interest on loans or paying the bill for the bailouts.
www.marketoracle.co.uk/Article40231.html”
Overturning these stones, in my view, is the push to make America’s financial system the monopoly of the banks.
Even taxation comes into play.
One of my credit unions, for example, wrote just this quarter: “With the current climate in Washington, it’s clear they see this as the perfect opportunity to ‘sneak it in.’” They're talking about taxation of credit unions.
On the other hand, nearly a third of all U.S. banks are exempt from corporate income taxes because of their classification as Subchapter S corporations. The same lobbyists who want to tax credit unions have been trying for years to expand eligibility for Subchapter S status effectively eliminating many of the taxes these banks pay.
My credit union states: “Bank lobbyists are even implying a tax on credit union earnings could help balance the federal budget. They also claim credit unions have an unfair advantage and suggest taxing credit unions would ‘level the playing field.’”
The truth is that “if the federal tax exemption were scrapped and all credit unions taxed on their earnings, it would only generate enough revenue to cover around .06% or less of the federal deficit—equal to funding the government for roughly one hour.
“Credit unions hold just 6% of all U.S. financial assets, while banks hold the rest. Each of the nation’s four largest banking entities individually hold more in assets than all U.S. credit unions combined.”
donttaxmycreditunion.org
If this doesn't cause a bank run of epic proportions I don't know what would.
A few words in your shell like:
Lehman Brothers
BCCI
Northern Rock, UK
Bank runs trigger the run of big money consolidating its stangelhold on world finance, creating fraudsters like JP Morgue, Goldman Sacks, 'Royal' Bank of Scotland, the Queen's bank, for example. Just to name a few of the global criminal cartel who rig every market 24/7.
Privatise their profits, and socialise their losses.
Yeah, let them charge depositors, force those to pull the money and move that into stocks. Let's move the SPX above 1860 and then give them the christmas tree on stocks as a fine gift by christmas. The country will burn like the candles on such a tree should burn.
Breaking news: Banks untrusting of the 'central banker'.....must be that 'no honor among theives' thing!
Whichever comes first deflation or inflation, the other will follow very closely on its heels.
After Wall Street held our 401k's hostage back in 2007-2008, and to which we Americans caved like little bitches, they know now that they can take whatever they want, whenever they want.
We're so dependent on electronic banking that many would still keep their money in a bank, despite being charged for it. And for those who choose not to keep money in a bank, guess what? Money orders, wire transfers, check cashing, breaking large bills and any other form of monetary services will cost at least 300% more.
And enjoy the Bitcoin orgy while you can. TPTB won't be having a competing currency that is separate to the Fed, ECB or BIS. Does anyone here really think a competing currency would be allowed?
Guy gets to heaven with a big duffel bag. St Peter says to him,, you come in with nothing here. Guy says priest promised him he could take this in with him so St Peters says ok whats in the bag. Guy opens it and it is gold bricks. St Peter looks at him and says "Pavement? Really?". All your duffel bags belong to them. Paper is just that. Bank run? I doubt it. I saw T-bone steaks for 14.99 a lb. Maybe they were grassfed? What a crock of crap. Fifteen dollar a lb tbones? Inflation less than 2%. I had a guy I know who is pretty straight up, hard working , IT tech young enough to be my son but probably a lot more conservative than I am. He volunteered to help me with a plumbing problem. We had never talked econonmy or Fed or Gold vs fiat before. Out of the blue while under my sink he says to me, " I have often wondered what an armed uprising of the people would look like in this country?" Just like that. I think more people are becoming aware of what is going on. Maybe they can't put a finger on it, but more people than not know when the are getting F'ed and not getting kissed first. We will all find out together. Keep your powder dry. Hope that doesn't get me put on a list. Be aware, be ready.
Fork em. Here I am, put me at the top of the list. That's where we stand. The worst case, I get to see my mama again.
The criminals pols, crats and their bankster masters will call it an "uprising," but we will call it a Restoration and Retributive cleansing.
Now does anyone know if IKEA sells guillotines? Need to get a few Christmas gifts.
I dunno, but here is a great stocking stuffer....
http://www.amazon.com/WIPE-OBAMA-FUNNY-TOILET-PAPER-MADE-THE/dp/B006Z994...
We are all on a list already, mi amigo.
Wells Fargo already took the first step. I just received a letter informing me that my PMA account is automatically being converted into a regular, no interest, account. Also if I do not have direct deposit or if not a minimum of $1500 they will start charging me $8 per month. No problem since I use direct deposit and then go in and clean that out every month for cash for investment in hard assets.
gold their only way out...
Reading the article and imagining the effect it would have on a totally electronic banking system.
The whole economic system for the last 40 years has been slowly engineered to move to its current form because the economic mechanism demanded a level of growth in the game it to keep functioning. The thing about 40 years ago the economy was junk then and this is like ripping the plaster off you placed to cover up the haemorraging wound.
So here is the question are you prepared to pay for your bank to hold your money? You know for every 100 bucks you only get 99 back, or leave it a year it is only 98 ... etc. Does a person who is to be paid not have a right to DEMAND CASH AND FILL THE MATTRESS instead of paying a bank? For sure if you have cash, you are not going to put it in right, just hand the bank a dollar (yeah right) instead and hold it for yourself.
What does the article suggest and can happen with such an inter-connected financial sysyem across all nations and in all areas? You can have the inflationary mechanism but if it is not enough the deflation will be taken directly in cuts, charges and bailins. These cuts, charges and bailins could be considered the result of say Greece, Spain etc. even Japan NOT FULFILLING ITS INFLATIONARY OBLIGATIONS GLOBALLY.
THE TBTF BANK MAY BE IN ANOTHER NATION AND NOT YOUR OWN.
printing reserves is not investment. Close the Top 5 derivative down, get the GE comercial paper, AIG.. The can kicking is like trying to kick a barrel of Saudi Crude.....
http://www.occ.gov/topics/capital-markets/financial-markets/trading/deri...
Thank goodness, Silver, Gold and CryptoCurrencies currently allow people to never to have to use banks.
If the systemically corrupt BIS and bullion banks and Fed continue in their up front in your face corruption of Gold/Silver they may end up inadvertantly crashing the entire market ..........
.......as people begin to step away knowing all thay they will be buying is unbacked paper gold, that will be shorted the moment they buy it, and request for delivery will bring nothing. It must be obvious they will be buying into a pit of quick sand.
What happens if the idiot BIS and Fed crash the COMEX in gold/silver? Where there will be no buyers for fake gold that comes with automatic short-selling?
The COMEX loses its power to price metals.
Negative interest rates on deposits? Well Shit. If that don't monkey-hammer gold today everything else will.
I think the Bank of International Settlements is as a corrupt organisation as you can get.
Their belief that they are beyond all laws and oversight has them selling tons of gold on a very regular basis on the thinnest markets they can find..always seaching for the lowest price they can find.
And..they are selling fake gold...just unbacked paper.
When you have TPTB ... LBMA, BIS, Fed etc al... standing in front of all the world with their pants down penis in hand masturbating without a care in the world... you know corruption has reached its peak.
They are only steps away from murdering their own citizens to maintain their power over money and society.
Well, when the banks begin charging customers for lending banks money it will be the beginning of a mass bank run which brings the system down.
Banks are continuing with their fraudulent activities unabated: http://www.dailymail.co.uk/news/article-2512791/Banks-ruin-firms-just-ma...
RBS and Lloyds are partially State owned.
This criminal behaviour by banksters will not end until enough of them are rounded up and prosecuted.
Charging would be correct if the deposits woudl be owned by the deposit holder. But it's credit to banks and so the banks can "do-whatever-they-like" with it. It's not guranteed that you get back your own money. So as it is charging for money currently is IMHO illegal. Even if it's legal it's also legal for anyone to go to the bank and request one's money back. That should be done by 10 - 20 % of all deposit holders and we'd be over with this round if suppression. Banks would collapse, faster then anyone could count to ten.
This is the final message that banks don't care about or need customers. They have the FED pumping in all the money they need. WE are totally screwed as a capitalist country. Get ready for the USSA run by the corporations.
The Fed has only been paying interest on excess reserves since October 2008. Prior to that, banks used to make loans.
In some cases we are already there. About $25,000 in total deposits at one local bank and saw in my statement that they had paid me $70 in interest for the year but pulled out $180 in fees.
The reaction was surprise when I told them I was closing the account now and would take the full amount in cash. Closed the account on the spot but was only able to walk out with $10K of it in cash. Now mostly use credit unions.
They still didn't seem to understand why I had a problem with paying them to use my money to loan out at interest.
Going negative could create a surge in demand for paper currency.
I looked at a friends bank statment (who the fuck still has a "saving account" anyway) and the interest rate was 0.10%.
What's next? I think we all know the answer to that.
So, rather than charge their cronies more interest, they would start charging consumers interest on deposits. That would lead to one of two things:
1. A move from the banks that charge for deposits to banks that pay interest on deposits. They would have to illegally collude to prevent this. Not that illegally colluding is anything new for them.
2. There would be a run on banks for cash.
Either way it would be the end of some or all banks. It is a toothless threat.
Can I just start my own bank and get my direct deposit from my employer routed directly to me?
I wouldn't have a bank account if I didn't have to convert my paycheck to money somewhere along the line, but if I could be the National Bank of Reader1, I could perform all my banking services and maybe even hook up my neiighbors and buddies with low-cost banking services, loans, the occasional friendly sodomizing with a friendly reacharound in the name of good customer service. It would be great!
Iv got nothing _I_