Was There A Run On The Bank? JPM Caps Some ATM Withdrawals

Tyler Durden's picture

Under the auspices of "protecting clients from criminal activity," JPMorgan Chase has decided to impose withdrawal limits on certain ATM transactions. As WSJ reports, following the bank's ATM modification to enable $100-bills to be dispensed with no limit, some customers started pulling out tens of thousands of dollars at a time. This apparent bank run has prompted Jamie Dimon to cap ATM withdrawals at $1,000 per card daily for non-customers.

Most large U.S. banks, including Chase, Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. have been rolling out new ATMs, sometimes known as eATMs, which perform more services akin to tellers. That includes allowing customers to withdraw different dollar denominations than the usual $20, typically ranging from $1 to $100.

 

The efforts run counter to recent calls to phase out large bills such as the $100 bill or the €500 note ($569) to discourage corruption while putting up hurdles for tax evaders, terrorists, drug dealers and human traffickers.

 

The Wall Street Journal reported in February that the European Central Bank was considering eliminating its highest paper currency denomination, the €500 note. Former U.S. Treasury Secretary Lawrence H. Summers also has called for an agreement by monetary authorities to stop issuing notes worth more than $50 or $100.

This move appears to have backfired and created a 'run' of sorts on Chase...

A funny thing happened as J.P. Morgan Chase & Co. modified its ATMs to dispense hundred-dollar bills with no limit: Some customers started pulling out tens of thousands of dollars at a time.

 

While it was changing to newer ATM technology, J.P. Morgan found that some customers of banks in countries such as Russia and Ukraine had used Chase ATMs to withdraw tens of thousands of dollars in a single day, people familiar with the situation said. Chase had instances of people withdrawing $20,000 in one transaction, they added.

Remember Greece?

 

And, in what appears to the start of a war on cash in America, The Wall Street Journal reports,  the bank is cracking down, capping ATM withdrawals at $1,000 per card daily for noncustomers.

The bank run by Chairman and Chief Executive Jamie Dimon said there doesn’t appear to be fraud involved. But in part due to heightened regulatory scrutiny, banks are paying more attention to large cash transfers that could be a sign of money laundering or other types of shady activity.

 

The move by the largest bank in the country doesn’t affect J.P. Morgan Chase’s own customers, whose maximum daily withdrawals are set depending on the client’s account type.

 

J.P. Morgan Chase’s change last month affects roughly 18,000 automated teller machines nationwide and followed an interim step earlier this year limiting noncustomer cash removals at $1,000 per transaction. The earlier move was made as a temporary fix while the bank could make software changes to roll out the more stringent daily limit, said bank spokeswoman Patricia Wexler.

However, as we noted last night,

What the story is about is the nebulous world of offshore tax evasion and tax havens, which based on data from the World Bank, IMF, UN, and central banks, hide between $21 and $32 trillion, where registered incorporation agents and law firms in small Caribbean countries (and not so small US states) make the laundering of money and the "disappearance" of the super wealthy, into untracable numbers hidden behind shell companies, possible.

So, there is more than the total US GDP being laundered in offshore tax havens, but yes, let's eliminate the $100 bill to cut down on corruption and money laundering.

Of course, we are sure this is just another 'storm in a teacup' as why should anyone question a fine upstanding and trustworthy bank withholding people's money when they are assuredly tax evaders, terrorists, drug dealers and human traffickers.

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Hohum's picture

You would think JPM would just increase fees on the non-customer ATM withdrawals.

knukles's picture

And not sell cigarettes to minors, either.

gdogus erectus's picture

Wait. What? No limit on $100 bill withdrawals? This after all the crackdowns on cash withdrawals from local branches, SAR limits, etc? WTF. Are they repatriating drug money? Pulling it out of the system before collapse?

techpriest's picture

It's funny, I was performing some account changes at my local bank recently, and the guy had a number of questions about how much cash my business handles, whether there are any relationships to various types of business deemed high-risk, etc. A lot more questions than when I first opened an account.

While getting it all set up, we also talked about international transfers, and the guy told me about a Chinese kid whose parents had to send $300k as a part of his particular visa requirement (certain visa programs require you to have a set amount of cash in a US bank account), and thanks to new Chinese capital controls, the feds froze the accounts because the cash came from several sources. It turns out you can only move $50k per person per year out of that country, so to get around it you have 8-12 family members send it over.

It seems the doors are closing everywhere, so any opening, no matter how small, is going to open up a torrent of cash flying out of the system. Also, given how much cash Chinese/Indian students have to keep in the US for their visas, I wonder what would happen if enough of them had to leave?

erkme73's picture

I pulled out $60k to buy land a few months ago.  You should have seen the questions asked.  The teller apologized, saying it was the Fed Reserve mandating the questions.  I tried to get more detail, but all I got was a deer in the headlights look.

JRobby's picture

They are watching you.

new game's picture

doing the opposite, paring back operations and reducing stuff to esentials.

"not realizing you are safer with nothing, than a backload of burdens".

johngaltfla's picture

If you look at the order flows last Friday, clearly someone knew the game is about to be up as a lot of big money GTFO of JPM as the stock ticked up...

Stuck on Zero's picture

I'm seriously disturbed. My bank (BofA) only lets me withdraw $20 bills up to a total of $500 from their precious ATMs.

Cornfedbloodstool's picture

Wells Fargo is even tighter $300 in $20s.

RAT005's picture

I think those two banks have fees around $3/transaction for non customers so smaller limits is profitable to them.  My bank doesn't have an ATM in my town so I have to use another bank like those listed.  My bank doesn't charge me to use their machine but those machine owners charge me to use my bank card.  I paid cash for a $3,000 car once.  The total ATM fees were around $30.  And I kind of felt it was necesssary to tell my bank I was about to do it so they wouldn't limit me.

JamesBond's picture

It's possible that this type of thing can be coined, a Thrump Tantrum.  This candidate went national and voiced his opinion that we are either in a recession or are goiong to be in a massive one soon; of course we all know we  never left the last recession.  So, some people are taking his words to heart and taking action.  I would think that his campaign is pleased.  Also, I wonder if the  Panama Papers woke up a few folks (dare we say we peeled some folks?) to the fact that there is no longer the premise that everyone is equal under the laws of the USA.

 

Or, everyone could just be lining up to purchase the new Telsa vehicle.  Damn.

 

jb

live free's picture

If any zh'r still has money in a big bank and not a credit union or very very trusted small bank.... well... your not learning anything....

techpriest's picture

In some cases, you need an operating account with a big bank to make taking payments from far-away clients easier. I wouldn't keep more than short-term operating expenses in the account, however.

asteroids's picture

Jesus, just because "the Fed Reserve mandated the questions" doesn't mean you have to answer. Just smile and say nothing. If they insist, well tell them you are going to "lend it to the FED" or some other fairy story.

Cognitive Dissonance's picture

If you don't answer their questions to their satisfaction, they don't have to give you the money in cash. They are entirely within their legal right to hand you a certified check or some other 'secure' instrument. Remember, you are a creditor of the bank. It is not your money until they give it back. They set the terms, not you.

conscious being's picture

I tried to cash a $10k check at BofA, drawn on a BofA account. They refused! They said I could open an account and deposit it. I went back to my broker. Told them the problem and they wired it to me ... for a fee.

MANvsMACHINE's picture

Does your broker make you broker?

TVP's picture

Another thing to remember - that "money" constitutes debt, not real money.  "This note is legal tender for all debts, public and private".  Anything you purchase with FRNs can be taken from you, under the law, because you bought it with central bank-denominated debt notes.  It was never your money in the first place.  

striped-pad's picture

@cog

They are entirely within their legal right to hand you a certified check or some other 'secure' instrument.

They're in debt to you - surely you have the right to insist on legal tender?  I thought that was the whole point!  I suppose you might have to sue them, but if you show a court your latest bank statement to provide evidence of their debt to you, won't the court have to come down on your side?

Bobbyrib's picture

It's illegal for him to talk about it.

Twaddlefree's picture

erkme73:

 

And it never occurred to you to ask to speak the bank manager for more information? Why give in so easily?

OrangeJews's picture
OrangeJews (not verified) gdogus erectus Apr 4, 2016 3:34 PM

Was at a BofA lately and a pissed off guy was talking to the manager...

 

"Why is there only one teller?"

"Well, sir, we are cutting back and will continue to cut back."

"What, is she only going to be there every 30 minutes?"

JRobby's picture

She had to wash the VP's balls on her break

Frankie Carbone's picture

Wait...a....minute there. No one said that there was no limit on YOU. 

Only "preferred clients" get that privilege, and regardless of your wealth, you already blew it by posting here. 

Winston Churchill's picture

Its Ok if they are rehypethecating someone elses cigs to minors though.

knukles's picture

All it takes is one butt to flow through the City and next thing you know is there's a world wide glut of Zig-Zag papers
If it ain't one thing there's always another.  Next thing you know Goldman'll own all the rolling machines, antique tobacco tins and short curved stainless hemostat manufacturers.

MontgomeryScott's picture

Always carry a pouch of rolling tobacco, Knuk. 'Plausible Deniability', you know!

Goldman doesn't actually OPERATE the grow farms.

They just lend the USGOVCONUS CIA the MONEY to operate (whatever it is they operate), on the 'black budget' line item line in the 'Omnibus Spending Bills' passed by Congress and signed by the President. It's all, well, 'Squidly', you know. Mexico, NorCal, Afghanistan, wherever 'investment banking' is REQUIRED...

Next thing you know, Goldman willl corner the market on '10-guage Alligator Clips' with boa feathers attached (according to you, my friend). Chicks dig these (and some men who like to be women, or cow-tow to them to get a little trim). Made in China, you know (like everything is).

"All it takes is one butt to flow through the City and next thing you know is there's a world wide glut of Zig-Zag papers"... PPHHHHPT! EMPTY ZIG-ZAG WRAPPERS, and BAGGIES, I suppose!

jcdenton's picture

Re-hypothecating ..

 

You don't hear that word everyday ..

 

Or, perhaps there was some other agenda at hand… like the hypothecation (perhaps even re-hypothecation) of the funds I earned on behalf of myself and the American people.

 

http://wantarevelations.com/2014/01/wanta-plan-macro-financial-economic-...

 

Actually, the word is -- conversion ..

http://eagleonetowanta.com/

 

 

 

 

JRobby's picture

A JPM bank run would indicate that their sheep depositors actually had an idea what was going on.  NNAAAAAAAAAAHHHHHHHHHHHHHHHHHH

MontgomeryScott's picture

You are evil and wicked and not politically correct, for even BRINGING UP this subject.

OF COURSE, the masters at J.P. Morgue-on will be appraised (regarding your comment).

The 'sheep depositors' (as you like to call them) have full confidence in the worldwide banking system, due to years and generations of TRAINING, and ALL OF THEM will be investigated by the tax authorities for TERRRORRRORRRORIZMS' by their regional 12-part global TAX COLLECTION AGENCIES (in order to keep rabble-rousers like YOU SAFE from TERROROR, TERRORISTS, TERRIBLE TERRORORISM, and so-called 'PREPPERS' and 'STACKERS'.

My personal advisor and confidant Jamie Dimon and I have decided to respond to you personally, in order that this matter be settled immediately, with extreme and judicious measures.

Sincerely,

Mr. Janet Yellen (on behalf of the Rothschild Dynasty Holdings Group)

P.S.

Keep this activity up, and your account at Zero hedge will be black-checked, and this will go on your 'permanent record', young man.

Sincerely,

GookleTube (a division of P.R.C.).

(Can you say 'Sarc'? I KNEW you could!)

MontgomeryScott's picture

Spell-check 'Bill from Bombay', here.

It's spelled 'HYPOTHETICATION', you silly caucasian boy.

'Mary from Mumbai' double-checked the old 'English Language' dictonaries, and has found that we are in agreement, as to your spelling error. The Western finaciers use derivitaves of this word, like 'REHYPOTHETICATION', in order to further confuse the stupid, ignorant masses who invest on 'Wall Street'. Think of it like a 'Derivitave of a Derivitave' that the Bankers place bets on (laying odds, and watching the results from casinos in Las Vegas or Wall Street trading desks).

Mary and I love this movie. It's not quite accurate, but it's better than the crap and cow dung from Bollywood:

http://rainierland.com/movie/the-big-short-2015.html?utm_source=011816+W...

The base root word is 'HYPOTHESIS'.

Hang on one minute please and thank you for waiting, while I verify someting...

JOHNNY FIVE! HE'S ALIVE!

JohninMK's picture

I am in the UK so JPM means little here.

In their defence what is wrong with their action? They upped the limit expecting people to continue as they were. They didn't so they changed strategy.

What is being ignored here is the logistics of keeping these ATMs filled and the balance of notes in them. More $100s mean less $20s etc stocked, so when the lower value notes run out those who want less than $100 get pissed off and complain.

In addition, there might be popular ATMs than need refilling every few hours.

It looks nothing to do with 'the cash war' but more customer relations, logistics and cost.

A logical move for a customer centric bank like JPM. (OK maybe that's going a bit far)

knukles's picture

I guess JPM doesn't mean much over there as any allusion to them as a "customer centric bank" is sorta like jerking off when you're in bed with Billie Piper

JRobby's picture

Actually, everything means very little there Jonny Boy!

MontgomeryScott's picture

Oh, no!

Barclay's says it's as SOUND AS A POUND! RBS confirms this!

The British Ministry of PRINTING has confirmed an order for several hundred 'industrial-strength' printers from the Britsh Ministry Of Finance. Since Canada (a protectorate) recently announced that they decided to SETTLE their accounts (and no longer has any GOLD; PHYSICAL), everyone is 'jumping on the bandwagon'.

It's the WAY OF THE FUTURE, old chap.

Power corrupts. Total power is CORRUPTION at the core. Do ya KEN, JR?

https://www.youtube.com/watch?v=4_Pbx9mvWPY

Old Howard Hughes didn't know how powerful he was (as an individual). It drove him CRAZY (having to deal with a positive morality and a negative avarice at the same time).

Little putz 'Jonny' is merely a cog in the wheel (a 'brick in the wall', so to speak, of the oligarchs that he doesn't realize control his destiny).

A REPRISE:

https://www.youtube.com/watch?v=4_Pbx9mvWPY

Get on with your work. REPEAT AFTER ME: 'An acre is a rectangle whose length is ONE furlong, and whose width is THREE...'

 

'J.P. Morgan' and 'Chase Manhattan'. Outposts and controlled interests of the Rothschild banking dynasty, as I am understanding. (NOTHING to do with the ROYAL BANK OF ENGLAND', of course)

Give him time. He'll come around; or be a pawn. It's his decision.

DetectiveStern's picture

The daily limit at ATMs is £300 here I think.

The_Small_Lebowski's picture

They're just stocking up ahead of the great toilet paper shortage of 2016. 

willwork4food's picture

Jesus, now you're REALLY depressing me.

KnuckleDragger-X's picture

Thank god the "smart" people are in charge, otherwise I'd be thinking it's turning into a clusterfuck or something......

JRobby's picture

$50 for every $20 withdrawn

roadhazard's picture

Why not do what I do and just go in the bank and tell them to get together X amount and I'll be back in a couple of days to get it.

BandGap's picture

Just yank out a few thousand at a time. I have never gotten a second look but I live in fly over country.

Dash to the cash filling the stash.

Took Red Pill's picture

with soon to be worthless trash

1980XLS's picture

Any cash tranactions over $10K at US banks require the bank to report such to the IRS.

Deliberately structuring multiple transactions to avoid such reporting reporting is called "structuring" by the IRS and considered a crime all by itself. Many people have lost entire businesses and assets for being accused by the IRS of structuring, all without any due process. (clearly a constitutional violation.) This is why people were all over those ATM's willing to dipense such amounts

Welcome to the USA

https://www.washingtonpost.com/news/wonk/wp/2015/05/15/how-the-irs-seized-a-north-carolina-businessmans-life-savings-without-ever-charging-him-with-a-crime/

http://www.nytimes.com/2014/10/26/us/law-lets-irs-seize-accounts-on-suspicion-no-crime-required.html?_r=0

 

 

buzzkillb's picture

Why would taking out $20k in a bank be different than from an ATM?