HSBC Bank Blocking Large Withdrawals Without ‘Evidence’ Of Spending Need (UK)

Prophecy News Watch email ^ | January 26, 2014 | Unknown

[sickoflibs]

Try this then: "Sorry, all your savings $$$ are gone. You got here too late, if you were one of that first hundred you would have got it back. But now we must close as its all gone.
BTW :If you owe us $$$ we will sell that loan so you still owe it.
We feel as bad as you do even thought we who work at the bank got ours out first. "

[DJ MacWoW]

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[NEMDF]

So are you suggesting the bank send an armed guard to go along with you, when you make a sizeable withdrawal, just to they can take steps to make sure that their savers’ money is not lost? What do you see as the limit to the bank’s involvement in “protecting” the customer who makes a withdrawal?

[JRandomFreeper]

The bank has an obligation to pay depositors.

No-one is talking about a bank run, and cash controls to mitigate a cash run.

This is every-day transaction kind of stuff. That is none of the bank's damn business.

/johnny

[JRandomFreeper]

What do you see as the limit to the bank’s involvement in “protecting” the customer who makes a withdrawal?

Obviously, making sure you don't buy that bass boat that you don't really need....

/johnny

[lacrew]

“Banks make $$$ by loaning it out. They cant just call a homeowner and demand full payment on a mortgage on the spot.”

True - but that’s probably spelled out in a contract. If the bank changes the rules on me, without my agreeing to it...I’m upset.

[TexasCajun]

If You Like Your Money, We'll Keep It Safe For You!

You Don't Need That!

[sickoflibs]

RE :”The bank has an obligation to pay depositors.
No-one is talking about a bank run, and cash controls to mitigate a cash run.”

Further down in the article it talks about the banks solvency problems.

That ‘obligation means little if this happens:

“Sorry, all your savings $$$ are gone.
You got here too late to get it, if you were one of that first hundred you would have got it back. But now we must close this bank as its all gone.
BTW :If you owe us $$$ we will sell that loan, so you still owe it to the bank who buys it.
We feel as bad as you do even though we who work at the bank got ours out first. “

[lacrew]

I think you are making a big leap...from ‘Hey I want to take out $10k’ to a ‘run on the bank’.

Banks fail ALL THE TIME. And the federal government steps in, and halts large withdrawals. In other words, they already have emergency powers to prevent a run on the banks...and new rules such as these would have no impact on bank runs. None whatsoever.

[SkyPilot]

Just think how “safe” your IRA or 401K is now.

[JRandomFreeper]

And people wonder why I avoid banks and statists.

It's not your money if you can't access it when you want to.

/johnny

[Smokin' Joe]

How would it be anarchy for me to get my money out of my account?

[JRandomFreeper]

And the bank still has the obligation to pay depositors from the income received from outstanding loans. That obligation isn't wiped out because the bank is out of cash.

Or more likely, the bank gets a loan using accounts receivable as collateral to repay the depositors.

/johnny

[sickoflibs]

RE:”Banks fail ALL THE TIME. And the federal government steps in, and halts large withdrawals. In other words, they already have emergency powers to prevent a run on the banks...and new rules such as these would have no impact on bank runs. None whatsoever”

I already made that point, but if you look closely this story is about England. They cant just make mo $$$. If they don't take steps their depositors really get screwed.

[sickoflibs]

RE :”True - but that’s probably spelled out in a contract. If the bank changes the rules on me, without my agreeing to it...I’m upset.”

This isn't the UK.

In the US we create our own currency so saving accounts are not at risk the way those in the EU are.

So that is unlikely to happen here,

[sickoflibs]

RE :”And the bank still has the obligation to pay depositors from the income received from outstanding loans. That obligation isn't wiped out because the bank is out of cash.”

Not the way it worked in 1929.

Bank run and it closed, bank sold its loans to pay bondholders first. Those owing to the bank just owed it to the next bank.(in fact this happened to my GMAC home mortgage a few years ago here)

Savers and investors got nothing.

Probably what English banks are trying to avoid.

[miliantnutcase]

It’s not your money peasant! You live, work and die at the state’s pleasure. You didn’t build that, I mean make that money! ;-)

[Wolfie]

Maybe HSBC wouldn’t have to worry about if they had thrown top-executives in prison for LAUNDERING MONEY FOR THE DRUG CARTELS instead of making them just pay a $1 Billion “cost of doing business” fine.

[sickoflibs]

This actually shows why the US is still the reserve currency even though the Fed creates lots of $$$.

EU banks are not safe, I know this sounds a bit funny, but here is an example.

[Augustinian monk]

Banks are not private institutions. They are quasi-governmental institutions. That’s why they are closed on all the same days.