– Bank-Run Fears Continue; HSBC Restricts Large Cash Withdrawals (ZeroHedge, Jan 25, 2014):
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.
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“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.
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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.”
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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.”
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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…
Protect their customers? It is protecting their own vulnerabilities. They are running on a shoestring compared to what they claim, and any run on any bank will have dramatic results. Reason is simple. They started the scam after the last crash in 2007-08. It became standard business practice to take $100 million and leverage it into $100 billion.
One thousand to one ratio, pretty insane, but all the laws that made our system strong are gone. Recently, they decided to leverage the leveraged funds. Someone else can do the math, it is at an insane rate……they are playing with far less money than there is in the world economy. Of course there will be a run, and it will happen sooner than later.
The world annual GDP averages $50-65 Trillion. These clowns are playing with hundreds of trillions, I am even hearing quadrillions. This much wealth doesn’t exist.
Money exists to represent the wealth of a country. You cannot honestly show more money than you produce….it becomes of no value, and that is what they have done. When you see numbers in the hundreds of trillions, there is something wrong……because such wealth doesn’t exist in the entire world economy.
The greedy gut bankers have been given free rein, now the world will pay. Unfortunately, this is a relatively small problem in the array of troubles we face with warming climate, heating fallout from Fukushima…….endless wars……all of these point to our demise.
As a historian who often wondered why civilizations vanished seemingly overnight, I never dreamed I would see it for myself. But, thanks to the greedy guts running Japan, we will all see and be part of it.
Thanks to Fukushima, and no sane regulations, we are facing our own demise. What I find interesting is how few people acknowledge this fact…..the denial is worthy of any seen in an alcohol dominated household……..positively sick.
I see people I know grabbing more CA real estate because the prices are low, and though they are advanced in years (as I am) they expect to become multi millionaires. They neither acknowledge their own advanced ages or the poisons literally burning up the soil here in CA.
Denial is something I thought was indicative in an unhealthy household……..but it is pervasive throughout our culture. If you cannot face the truth, you cannot take the steps to help you survive.
Part of it is the virtual reality in which many Americans live. Their flat screen TVs and smart phones tell them what “news” is important, and does not tell them the truth. None of the stories discussed on this site make it to mainstream TV or news, it is true, therefore unsafe to the clowns running our world into the ground.
Fukushima is ignored, so are the financial stories that are so important……..keeping people ignorant keeps them quiet and dumbed down. But, turn off those TVs and phones, let them see the truth, and all hell breaks loose. That is why they work so hard to fill the airwaves with propaganda and cheap tabloid. News is now used to entertain where it used to inform……when our children and grandchildren sicken, and the illnesses grow more prevalent, the truth will make itself obvious to all.
Fukushima is too huge a story to hide. The banking collapse will be secondary by comparison, but we are facing the breakdown of a civilization and a way of life that will be remembered in legend (if nothing else) as a golden era.
From 1800-200, we went from horse and buggy to jet planes and probes on Mars. We went from candlelight to electricity, holistic medicine to fine surgery and some good medicine…….we beat (if only for a while) some terrible diseases. We grew so fast, so quickly, we did not realize our downfall would be even faster.
This site is so valuable to me, and folks who want the truth. We need to know what is really going on, not just cheap spin and tabloid. That is all we are fed these days. Surely they know the truth about the banks and Fukushima, they are just putting off the day of reckoning as long as possible.