• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

Bank-Run Fears Continue; HSBC Restricts Large Cash Withdrawals

Tyler Durden's picture




 

Following research last week suggesting that HSBC has a major capital shortfall, the fact that several farmer's co-ops were unable to pay back depositors in China, and, of course, the liquidity crisis in China itself, news from The BBC that HSBC is imposing restrictions on large cash withdrawals raising a number of red flags. The BBC reports that some HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it. HSBC admitted it has not informed customers of the change in policy, which was implemented in November for their own good: "We ask our customers about the purpose of large cash withdrawals when they are unusual... the reason being we have an obligation to protect our customers, and to minimise the opportunity for financial crime." As one customer responded: "you shouldn't have to explain to your bank why you want that money. It's not theirs, it's yours."

 

Via The BBC,

Some HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it, the BBC has learnt.

 

Listeners have told Radio 4's Money Box they were stopped from withdrawing amounts ranging from £5,000 to £10,000.

 

HSBC admitted it has not informed customers of the change in policy, which was implemented in November.

 

The bank says it has now changed its guidance to staff.

 

...

 

"When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for. They wanted a letter from the person involved."

 

Mr Cotton says the staff refused to tell him how much he could have: "So I wrote out a few slips. I said, 'Can I have £5,000?' They said no. I said, 'Can I have £4,000?' They said no. And then I wrote one out for £3,000 and they said, 'OK, we'll give you that.' "

 

He asked if he could return later that day to withdraw another £3,000, but he was told he could not do the same thing twice in one day.

 

...

 

Mr Cotton cannot understand HSBC's attitude: "I've been banking in that bank for 28 years. They all know me in there. You shouldn't have to explain to your bank why you want that money. It's not theirs, it's yours."

 

...

 

HSBC has said that following customer feedback, it was changing its policy: "We ask our customers about the purpose of large cash withdrawals when they are unusual and out of keeping with the normal running of their account. Since last November, in some instances we may have also asked these customers to show us evidence of what the cash is required for."

 

"The reason being we have an obligation to protect our customers, and to minimise the opportunity for financial crime. However, following feedback, we are immediately updating guidance to our customer facing staff to reiterate that it is not mandatory for customers to provide documentary evidence for large cash withdrawals, and on its own, failure to show evidence is not a reason to refuse a withdrawal. We are writing to apologise to any customer who has been given incorrect information and inconvenienced."

 

...

 

But Eric Leenders, head of retail at the British Bankers Association, said banks were sensible to ask questions of their customers: "I can understand it's frustrating for customers. But if you are making the occasional large cash withdrawal, the bank wants to make sure it's the right way to make the payment."

The arrogance is incredible...

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Fri, 01/24/2014 - 21:21 | 4365146 IridiumRebel
IridiumRebel's picture

i've been withdrawing since Cyprus...do your worst, fuckos.

Fri, 01/24/2014 - 21:27 | 4365161 VD
VD's picture

"..and to minimize the opportunity for financial crime." TRANSLATION: TO MAXIMIZE HSBC'S ABILITIES TO COMMIT CRIMEZ, WHICH ABOVE POLICY IS AMONG MANY OTHERZ...

Fri, 01/24/2014 - 21:34 | 4365178 IridiumRebel
IridiumRebel's picture

It's not like they are laundering money for drug cartels or something....

Fri, 01/24/2014 - 21:49 | 4365228 InjectTheVenom
InjectTheVenom's picture

GOT GOLD ?

Fri, 01/24/2014 - 22:12 | 4365299 philipat
philipat's picture

How long does it take for the sheeple to understand Bank Deposits make you an UNSECURED creditor of the Bank. So, actually, the momey is NOT yours, it's theirs!!! Join the queue and, oh, it might be a long wait....

Fri, 01/24/2014 - 22:21 | 4365324 fonestar
fonestar's picture

My funds are with Satoshi.  Nobody tells me how much I can spend per day.  Nobody tells me whether I can send the equivalent of $1 million to Iran.  Nobody to tell me what is for my own good.  Nobody to turn to if I screw it up.

Fri, 01/24/2014 - 22:25 | 4365335 sixsigma cygnus...
sixsigma cygnusatratus's picture

Nobody to turn to when it's gone, either...

Fri, 01/24/2014 - 22:34 | 4365369 fonestar
fonestar's picture

That is right!  Join the professionals!

Fri, 01/24/2014 - 22:49 | 4365410 kliguy38
kliguy38's picture

the game is goin' hot..........see how the weekend plays out.......those rabbitts are gettin' harder to pull out but they'll try until they come out well done

Fri, 01/24/2014 - 22:57 | 4365428 eatthebanksters
eatthebanksters's picture

BOOM!

Fri, 01/24/2014 - 23:12 | 4365463 mjcOH1
mjcOH1's picture

""When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for. They wanted a letter from the person involved.""

 

To whom it may concern, my intent is to get MY money out of your filthy fucking mitts before you squander it.  Best regards.....

Fri, 01/24/2014 - 23:24 | 4365485 TruthInSunshine
TruthInSunshine's picture

This is the biggest red flag I've yet seen, if true, that should raise serious concerns among even the most reserved of people, that there's massive instability and systemic problems on bank balance sheets.

HSBC is a massive western bank, and if it's seriously inquiring of its customers the reasons for their withdrawing ANY denomination of cash, then THAT'S A RED FLAG.

If any U.S. or U.S. located bank branch of a foreign bank inquired this of me, I'd immediately withdraw all my funds and close my account, and then pursue other legal remedies that may be available under the state and federal civil codes.

Fri, 01/24/2014 - 23:34 | 4365515 fonestar
fonestar's picture

Yes, is this the big one?  I certainly hope so.  Five years of blogging, stacking, prepping, being dismissed, Bitcoining, etc, etc, etc has left fonestar feeling a little drained and OCD.

Fri, 01/24/2014 - 23:43 | 4365551 JohnnyBriefcase
JohnnyBriefcase's picture

I know that feel, bro.

Sat, 01/25/2014 - 01:25 | 4365781 boogerbently
boogerbently's picture

"we have an obligation to protect our customers, and to minimise the opportunity for financial crime."

Up until now, their PURPOSE was to COMMIT financial crime.

Sat, 01/25/2014 - 03:06 | 4365919 Four chan
Four chan's picture

i only deposit just the tip, it makes pulling out much quicker even though you might leave a little behind.

Sat, 01/25/2014 - 05:21 | 4366032 Boris Alatovkrap
Boris Alatovkrap's picture

Haha, Boris is understanding innuendo... you are very smart funny! "Little behind"! You are introduce ironic situation of small buttock, but you are manifest large well endowment! Maybe you are topple forward with awkward balance.

Sat, 01/25/2014 - 05:52 | 4366071 old naughty
old naughty's picture

As one customer responded: "you shouldn't have to explain to your bank why you want that money. It's not theirs, it's yours."

What planet is thia guy on?

Boris is right...Banks are now topple forward with awkward balance (eh, maybe not...)

Sat, 01/25/2014 - 08:45 | 4366276 Arius
Arius's picture

 

 

All you people talk is about ME, ME, ME ... what about us, what about the society???

9-11 changed everything never forget that - it is a new world!

Now, there are now banking laws and regulations in place to fight terrorism and terrorist funding which banks are obligated to comply with ... get a grip ... anyway, most of you here are broke, so, do not have this problem., which makes you internet warriors

Sat, 01/25/2014 - 11:58 | 4366563 BurntPinky
BurntPinky's picture

How high is your nose stuck up THE MAN's ass?

Sat, 01/25/2014 - 16:27 | 4367128 So Close
So Close's picture

Banks are getting to be like a one way valve.   Money in all you want.  Cash out.... BIG PROBLEM.   Would love to see this tested with a 100k.

Tue, 01/28/2014 - 13:54 | 4375841 donsluck
donsluck's picture

Actually, there are requirements for DEPOSITING more than $10K. Withdrawal is unregulated.

Sat, 01/25/2014 - 16:28 | 4367129 So Close
So Close's picture

Dupe

Sat, 01/25/2014 - 16:53 | 4367180 Rakshas
Rakshas's picture

Nailed it......

911 changed everything now the terrorists are in the open so brazen it beggars belief; so evil they would serve to ghandify Hitler -

Bush was spot on with his "they hate us for our freedoms" meme - the really thick fuckers thought he was talking about some poor dirt monkey....... silly rabbits....

Today's tourist has become much more sophisticated than years gone by yes sir, the modern day terrorist uses such evil weapons  - NDAA, Double Tap Droning, Department of Gestapoland Security and perhaps the most diabolical instrument of evil ever spawned - MSM. No question these terrorist bastards really hate us for our freedoms and they mean to fix us ...... real good.....

And yes Virginia the banking laws that will cut off the terrorists funding - though not as you imagine perhaps - and they will burn on a pire of thier fiat lies ......... sound good cupcake??

 

Gold Biotchez

Sat, 01/25/2014 - 08:37 | 4366272 in-Credible Banker
in-Credible Banker's picture

Dude you are one funny mofo.  Priceless!

Sat, 01/25/2014 - 06:36 | 4366121 hunglow
hunglow's picture

Easy for you to say.

Sat, 01/25/2014 - 01:27 | 4365788 IridiumRebel
IridiumRebel's picture

...and to those that think, "they want it to collapse"
Bullshit. Nobody wants this, but these psychopaths have led us here. Math is a motherfucker. It's a mathmatical certainty this shit will collapse so either bury your head in the sand or stack, prep, bitcoin or whatever....ITS COMING.

Sat, 01/25/2014 - 01:57 | 4365830 DeadFred
DeadFred's picture

Looking over historical charts I can't find any big crash right after a new high. I expect at least one attempt to rally from this downturn. If it fails to reach the top again the market's psychology will start to change. Another tell would be if the bottom of a correction doesn't form a 'V'. A flat bottom means BTFD is dead and when it subsequently turns downward the rats will jump fast. Free advice that's worth every penny.

Sat, 01/25/2014 - 10:55 | 4366459 greatbeard
greatbeard's picture

Thanks dead.  It is those kinds of learned commentary that makes wading though all the hysteria on ZH worthwhile.  Peanuts in elephant shit I know, but damned good peanuts when you find one.

Sat, 01/25/2014 - 11:03 | 4366470 Theosebes Goodfellow
Theosebes Goodfellow's picture

~"They said he could return later that day to withdraw another £3,000, but he was told he could not do the same thing twice in one day."~

Living proof that fractional reserve banking and duration mis-match are a bitch.

Sat, 01/25/2014 - 14:01 | 4366873 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

I wonder what the bank would've said if the customer said "Closing my account". Hard to argue, however they might suggest a wire xfer to the new bank. Branches should have 20-50K cash on hand in any given day (depending on the size of the branch). If you authenticate as the customer, you should be able to take out up to the daily limit for withdrawals, and that should be posted clearly in the branch so you don't have to play stupid guessing games. Either HSBC is short physical cash or they're just assholes. I know that banks in the US will even question you *depositing* >10,000 in a day, under the dreaded money laundering argument. If I were that guy who could only retrieve 3000 pounds, I'd keep going back every day, or hit other branches until I got what I wanted. But basically, I'd get out of a bank like that. Not sure if the Brits have credit unions or equivalents of "keeping your money local". HSBC is a cess pit, and with a glorious history of drug running to boot.

Tue, 01/28/2014 - 11:28 | 4375147 StandardDeviant
StandardDeviant's picture

They're not short of physical cash.

Tue, 01/28/2014 - 13:56 | 4375850 donsluck
donsluck's picture

Sure they are.

Sat, 01/25/2014 - 09:54 | 4366372 yepyep
yepyep's picture

it will be worth it in the end dude.

 

Sat, 01/25/2014 - 12:57 | 4366695 Kirk2NCC1701
Kirk2NCC1701's picture

Late to this blog topic, but... I have NOT had problems with "large withdrawals" from HSBC. 

Tyler, please define "large withdrawals".  Maybe it's only a problem in the UK or the US?  Or maybe it's only a problem for the Walter White types (rich Meth cooks).  After all, given their monstrous size (outside the US), I seriously doubt that they would want to piss off their 'Global Premier' customers.

I gather that they don't really want Joe Sixpack as a US client anyway.

Sat, 01/25/2014 - 23:15 | 4367747 MontgomeryScott
MontgomeryScott's picture

According to the source e-mail within the Eurozone, 'large' withdrawls are anything greater than 3,000 (that would be Euros).

http://iacknowledge.net/hsbc-bank-on-verge-of-collapse-second-major-bank...

'Joe Sixpack' doesn't NEED to deal with this, because he typically stores his coins under the mattress (to be used in buying those big F-350 Fords with the diesels in them, or the new Bass Boats with the high-powered outboards so that he can beat the others to the best fishing spots). The 'sixpack' connotation does NOT refer to the number of beer bottles in the refrigerator; it refers to the musculature of the male abdomen (as in, 'six-pack abs').

Does this help? Read the linked information, as you go try to withdraw $50.00 to buy your dinner at McDonalds for you and your 'sigificant other'. NO, HSBC is more than willing to help you with what you define as 'large withdrawls'.

Sun, 01/26/2014 - 12:04 | 4368351 Bendromeda Strain
Bendromeda Strain's picture

Kirk vs Scott? HSBC must be worse than Tribbles! Mr Scott is correct, the Tylers don't need to expound on anything as the linked story had all the gory details. In the US, one can invest in a fireproof safe and draw approximately the same rate of interest on their savings. Instead of FDIC, savings are insured by Mossberg. In the UK? So sorry EUnuchs - you gave up that option.

Sat, 01/25/2014 - 00:20 | 4365646 Jim in MN
Jim in MN's picture

Repeat after me:

 

"I..um....need it...to.....buy a Tesla.  Actually, several Teslas."

 

 

Sat, 01/25/2014 - 01:42 | 4365813 TruthInSunshine
TruthInSunshine's picture

To pay property & income taxes, and ObamaCare premiums/deductibles - yeah, that's the ticket...

Sat, 01/25/2014 - 04:25 | 4365996 disabledvet
disabledvet's picture

"food. I know I'm a millionaire and that is my money...but do you think I could take out five bucks to buy a slice of pizza pie and a Pepsi?"

Sat, 01/25/2014 - 05:45 | 4366058 blabam
blabam's picture

Pepsi? wtf? 

Sat, 01/25/2014 - 13:00 | 4366721 Keyser
Keyser's picture

Which exactly why I planted a money tree in the back yard. It started to bloom and the damn thing is producing Rupees. 

 

Sat, 01/25/2014 - 23:33 | 4367778 MontgomeryScott
MontgomeryScott's picture

Did you say 'Moneytree'?

http://www.moneytreeinc.com/loans/washington/online-payday-loans-ppc

(Teacher to student) 'Where does milk come from?'

(Student to teacher) 'The supermarket!'

(The MIC to Congress) 'We need more money to wage the war you have or haven't declared, We have all these pesky 'cost overruns', and stuff...'

(Congress to Treasury) 'You HAVE to come up with MOAR moneys!'

(Treasury to Central Bank FRS) 'Say, if we promised you a payoff, in say, 5 years, would you accept our notes of promise to pay?'

(FED RES to Treasury) 'SURE! We can do that, but there is the issue of INTEREST PAYMENTS...'

(FED RES to USGOV printing department) 'Do you have any issue with printing MOAR bills?'

(Printing Dept' to FED RES) 'No, of course not, but we might have to buy more presses!'

(FED RES to printing department) 'Don't worry, just print some MOAR and give it to the manufacturers of the presses. I KNOW they'll take this as payment...)

 

The difference between modern economists and Newton is that when the fruit falls NOW, it doesn't hit them on the head (it is blown away by the wind).

YAY MONEYTREE!

(sarc)

Sat, 01/25/2014 - 18:15 | 4367334 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Just one pepsi, but she wouldn't give it to me.

Sun, 01/26/2014 - 03:38 | 4367970 CultiVader
CultiVader's picture

+10 for Suicidal reference

Sat, 01/25/2014 - 05:05 | 4366025 savagegoose
savagegoose's picture

or

ok id like to close my account

Sat, 01/25/2014 - 23:18 | 4367755 MontgomeryScott
MontgomeryScott's picture

@Jim in MN:

"No, wait, I don't like electric cars! I want to buy shares in Boeing's new 787 Screamliner! I'm investing in the Japanese battery manufacturer! I can't LOSE! I also see a futures gain in buying TEPCO, and SOLYNDRA..."

Sat, 01/25/2014 - 02:48 | 4365898 Max Cynical
Max Cynical's picture

"OK then, I'm closing my account immediately and require a cashiers check for the full balance."

Sat, 01/25/2014 - 06:09 | 4366093 silvertrain
silvertrain's picture

fill out this form sir we can have it ready in 14-21 days...

Sat, 01/25/2014 - 11:39 | 4366528 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Fill out this form, Frau Merkel, we'll have it to you in seven years

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