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Bank-Run Fears Continue; HSBC Restricts Large Cash Withdrawals
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."
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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Why does Stern single out Hezbollah? What does he have against the Lebanese Sh'ite defense organization?
Hezbollah is on the State Department's list of terrorist organizations is why.
Who put them on the list, and why is Israel's Likud government NOT on it?
From Twitter:
https://twitter.com/search?q=%23HSBC&src=hash...................................................
https://twitter.com/peterhuwfarmer/status/427047529159872512/photo/1
http://www.youtube.com/watch?v=xqB4mVaVzhM&feature=youtu.be Max going nuts on HSBC
http://iacknowledge.net/hsbc-bank-on-verge-of-collapse-second-major-bank...
HSBC Bank on Verge of Collapse: Second Major Banking Crash Imminent
Kerry-anne
January 25, 2014
Class Warfare Exists
Concerns about an imminent bank crash were further fuelled today at news that HSBC are restricting the amount of cash that customers can withdraw from their own bank accounts. Customers were told that without proof of the intended use of their own money, HSBC would refuse to release it. This, and other worrying signs point to a possible financial crash in the near future.
HSBC CollapseHSBC is scrambling to manage a seemingly terminal liquidity crisis (a lack of hard cash) that could see the bank become the next Northern Rock – and trigger a bank crash. The analyst’s advice is for shareholders to sell HSBC investments, and customers to move their accounts elsewhere before the crash.
This from the Telegraph:
Forensic Asia on Tuesday began its coverage of Britain’s largest banking group with a ‘sell’ recommendation, warning the lender had between $63.6bn (£38.7bn) and $92.3bn of “questionable assets” on its balance sheet, ranging from loan loss reserves and accrued interest to deferred tax assets, defined benefit pension schemes and opaque Level 3 assets.
According a report by the BBC’s MoneyBox Programme, HSBC customers have gone to withdraw cash from their accounts, only to find HSBC would not release the funds. Customers were told to make a bank transfer instead, unless they provided documentation proving the intended use of the money. Stephen Cotton attempted a withdrawal and told the programme:
“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.
As this was not a change to the Terms and Conditions of your bank account we had no need to pre-notify customers of the change”
He wrote to complain to HSBC about the new rules and also that he had not been informed of any change.
The bank said it did not have to tell him. “As this was not a change to the Terms and Conditions of your bank account, we had no need to pre-notify customers of the change,” HSBC wrote.
Mr Cotton is not alone, with other customers seeking to withdraw cash amounts over £3,000 facing the same obstacles. While HSBC argue there is comes customer security interest here, the story simply doesn’t add up. Customer identification is required for large withdrawals, not customer intentions – a person’s cash is theirs to withdraw and place wherever they so wish. Instead, HSBC has been found to have a capitalization black hole (gap between actual cash and obligations) of $80bn. The message is simple, get your money out now.
The Gold RushThe major banks and states appear to be preparing for impending crisis, while pretending to the public that the economic situation is improving.
There is a gold rush underway, with Banks and States frantically buying up as much gold reserve as they can, stoking fears that confidence in currency is at an all-time low. In recent months and weeks, banks like HSBC and JP Morgan, and states such as the US, Germany and China have joined the gold rush, making vast purchases of stocks.
Investment analysts at Seeking Alpha have been monitoring the strange activity on the COMEX, stating:
“keeping track of COMEX inventories is something that is recommended for all serious investors who own physical gold and the gold ETFs (SPDR Gold Shares (GLD), PHYS, and CEF) because any abnormal inventory declines may signify extraordinary events behind the scenes.”
Another Bank Crash? Why?The crash is in come ways a replay of the last one. The US dollar is a fiat currency (as is the pound sterling, the euro and most other major currencies). This means, it is monopoly money. There is no gold reserve that its values are pegged to. It is simply made up. So how does money get made? A private, for profit central bank prints it and lends it to the government (or other banks) at an interest rate. So the Central Bank prints $100, and gives it to the government on the basis that it returns $101. You may have already spotted the first flaw in this process. The additional $1 can only ever come from the Central Bank. There is never enough money. The second issue is that all money is debt.
This used to be the way pretty much all of the money in circulation came to be. That is, until Investment and Retail Banks got tired of this monopoly on debt based currency, and kicked off the commercial money supply. You might assume that when you take out a loan or other form of credit, a bank gives you that money from its reserves, and you then pay back that loan to the Bank at a given interest rate – the Bank making its profit on the interest rate. You would be wrong. The Bank simply creates that loan on a computer screen. Let’s say you are granted a loan for $100,000. The moment that loan is approved and $100k is entered on the computer – that promise from you to the bank creates $100k for the bank, in that instant. This ledger entry alone creates the $100k, from nothing. Today, over 97% of all money that exists, is made this way.
This is what drove the dodgy lending practises that created the last crisis. But since then, the failure to regulate the markets means that while bailouts hit public services and the real economy – banks were free to continue the same behaviour, bringing the next crash.
The world’s second richest man, Warren Buffet warned us in 2003 that the derivatives market was ‘devised by madmen’ and a ‘weapon of mass destruction’ and we have only seen the first blast in this debt apocalypse.
The news that should have us all worried is: the derivatives market contains $700trn of these debts yet to implode.
Global GDP stands at $69.4trn a year. This means that (primarily) Wall Street and the City of London have run up phantom paper debts of more than ten times of the annual earnings of the entire planet.
Not only can the Bankers not pay it back, the combined earning power of the earth could not pay it back in less than ten years if every last cent of our productive power went solely to pay off this debt.
This is why answering the issues with our currencies, our banking practices and economic system are not theoretical or academic – they are a matter of our very survival.
EDIT: I LOVE MY DOWNVOTING FOLLOWER. I LOVE YOU. YOU EMBOLDEN THAT WHAT I SAY HERE MEANS SOMETHING SO THANK YOU.
EDIT 2: Keep em' coming. When you masturbate, do you cry immediately afterwards?
Jebus you really care about these down votes that much?
Anyways, tried the Telegraph link (try this instead: http://uk.finance.yahoo.com/news/hsbc-faces-70bn-capital-hole-133705984....):
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- The page may have been moved, updated or deleted.
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- You may have typed the web address incorrectly. Please check the address and spelling.
What if the Drug Cartel in Mexico want to withdraw the 7 yards they have at HSBC? Do they need to provide a receipt?
Everybody needs to just CAAALLLMMM DOWN. Bankers are only doing this because the CARE ABOUT US - like they did when they made sure we all had warm shelter via their "you're my buddy" NINJA loans so we could all live in McMansions, or when MF Global moved your funds for a healthy bet in Europe (damn courts still don't get it - Corzine CARES...that's all), or as has been mentioned in this forum, when Cyprus confiscated their depositors' savings (it was for the greater good of a centralized Euro-paradise - what could be more honorable, selfless, and maternal than that?) Please, just give HSBC a chance to show that this is just tough love. Don't be such haters. Once deposited, its their money anyway. Remember, banks are people too. Have a nice day :)
Everybody needs to just CAAALLLMMM DOWN. Bankers are only doing this because the CARE ABOUT US - like they did when they made sure we all had warm shelter via their "you're my buddy" NINJA loans so we could all live in McMansions, or when MF Global moved your funds for a healthy bet in Europe (damn courts still don't get it - Corzine CARES...that's all), or as has been mentioned in this forum, when Cyprus confiscated their depositors' savings (it was for the greater good of a centralized Euro-paradise - what could be more honorable, selfless, and maternal than that?) Please, just give HSBC a chance to show that this is just tough love. Don't be such haters. Once deposited, its their money anyway. Remember, banks are people too. Have a nice day :)
ps - see, ZeroHedge so fully agrees and sees the importance of loving your banker as yourself, they posted this post 2X!
The federal government is 17 trillion dollars in debt.
When they ask what you are going to do with the money, and why. Simply tell the truth, loudly.
e.g.
No need to get sarky, lie or even get particularly worked up about it. Just make sure you're not going to be one of the 97% who are going to get screwed.
On days i was going to purchase gold, I'd go to the bank and pull out $2000 cash. They'd ask what I was planning on using the money for. I'd thought about telling them it was to purchase gold bullion.
I've been instructed not to say this by some people.
No one gave me a reason why I shouldn't.
It's not like they're going to freeze my bank account. I wasn't buying anything illegal.
Is your name on your cash? I didn't think so.
Most banks have now used the money laundering pretense to limit cash withdrawals. They will ask all sorts of questions if you even TRY to withdraw your money. They realize we are on the verge of a crisis in banking on a global scale (less so in the USA). The worst banks are in Europe and that includes those in Germany and even Britain such as HSBC. Eliminate CASH and you eliminate BANK RUNS.
This is the reason Behind the Curtain they are pushing this and it was Larry Summers, their boy, who flew that balloon I believe at the instigation of the banks. He was behind getting rid of Glass Steagall also for the banks and this is why he had to decline being appointed as Fed Chairman. Can you imagine any interrogation of who pulls Larry’s strings would expose far too much of what is going on behind the scenes.
http://armstrongeconomics.com/armstrong_economics_blog/
Eliminate CASH and you eliminate BANK RUNS.
Until Janet realizes she needs to physically print a lot more cash to cover the withdrawals. This is how Weimar happens.
I've said it before and I'll say it again.
In 2011 I took my then 87 mother to the locl branch of a large east coast reginal bank to pull just shy of 10k to load up w some AU. The branch manager said, "What are you going to do w it?" My MOM said (as i told her this was coming). "I'm goling to Atlantic City!" Then I said, "Are you going to file a SAR on my 87 yuear old Mother??" The manager said,"NO, we just wanted to make sure she wasn't being taken advatage of?" I said, "By who??"
Boys (and girls), the day is already here. Wake up.
I am going to rudely shout this:
WHEN YOU DEPOSIT CASH IN THE BANK, OWNERSHIP OF THE CASH IS TRANSFERED TO THE BANK. IN RETURN, YOU RECEIVE CREDIT IN YOUR ACCOUNT, AND THE BANK RECEIVES A DEBIT IN ITS ASSETS IN THE FORM OF YOUR CASH.
IF YOU WANT TO DEPOSIT YOUR CASH IN THE BANK AND RETAIN OWNERSHIP, DEPOSIT THE CASH IN A SAFE DEPOSIT BOX.
And hope when the time comes you choose to take it out of the safe deposit box, there is no IRS agent standing next to you taking notes.
The interest rate paid on a bank account deposit and cash sitting in safe deposit box is just about the same.
Recently, the law in many countries has been changed, so that when you deposit funds into a bank, in most first World countries, those funds become the property of the bank, and the depositor becomes a stake holder in the bank. So when you want to withdraw cash, the bank has a legal right to enquire as to how you plan to use the funds. After all, it is the banks money! The depositor was merely an investor in the bank. Maybe safe deposit boxes now fall under these new regulations as well?
BANK RUN INSURANCE WAS IMPLEMENTED IN NOVEMBER.
Anybody wanna bet whether other big banks did the same?
Depositors are all "unsecured creditors" Read here to see where you sgtand in line for "your" cash. Pay attentions to sections dealikng w "unsecured creditors".
http://www.fdic.gov/about/srac/2012/gsifi.pdf
Seems like this is a lot of fear mongering so The Hyenas can push the market lower
HSBC Says Proof of Reason for Withdrawals ‘Not Mandatory’
2014-01-25 13:46:41.834 GMT
By Jeevan Jyothyprakash
Jan. 25 (Bloomberg) -- HSBC says “immediately updating
guidance” to staff in connection with policy introduced in
November requiring customers in some cases to provide proof of
what large cash withdrawals are for.
* Failure to show evidence is not a reason to refuse a
withdrawal, HSBC says in statement on website today
* Not mandatory for customers to provide documentary evidence
for large cash withdrawals: HSBC
* Large cash transactions have inherent security issues and
leave customers with very little protection should things go
wrong: HSBC
* Bank apologizes to “any customer who has been given
incorrect information and inconvenienced”
* NOTE: BBC earlier reported HSBC customers complained after
bank imposed restrictions on large cash withdrawals
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
--Editors: Mike Harrison, Roger Neill
HSBC's Statement:
https://www.newsroom.hsbc.co.uk/articles/statement_on_large_cash_withdr
Regardless of fear mongering and if these events took place in more than one region of operations, there's bound to be a directive coming from somewhere and it then looks like they're back tracking heavy.
HSBC (Formerly the Hong Kong and Shanghai Banking Corporation) sheds crocodile tears of concern for their depositors seeking cash withdrawals, but has no qualms about receiving large cash deposits from its customers in the money laundering business.
Well then, watch as I promptly empy my account with my next gold purchase using my bank card.
HSBC, the world's biggest bank, informed its clients of changes in international transfers last year, tightening the regulatory oversight globally, all the better for Big Brother to control the 'free movement of people, goods and services' which was touted by globalisation as for the world's good.
Actually, only for the good of spendthrift governments and private banks.
Capital controls, exchange controls, fascism is coming - overtly or covertly. It may come under the guise of any political party or national security issue, but it is fascism nonetheless, with Big Brother led by central banksters and their apologist Keynsian academics.
PS
Take the advice of James Sinclair: get out of the system. Only keep enough money in your bank account for essential transactions, like paying basic bills.
Britain has seen unprecedented numbers of computer 'glitches' in the past year where customers could not withdraw money. I believe that this is testing the system for a planned 'bank holiday' which locks in accounts, and only re-opens when people can get their money in a devalued or lesser form, perhaps with severe restrictions on daily amounts and overseas transfers.
Simply because I don't think its been said...
Bullish!
When Nationwide asked me what I wanted the money for, I said, for drugs and prostitutes. I kept a deadly serious face and they just handed me the cash without another word.
Well played, sir. Well played.