Dr. Eowyn posted: " Tyler Durden of ZeroHedge warned us that when
bankrupt insolvent governments “run out of fingers to plug the dikes,”
history shows that they fall back on a very limited playbook. Simon Black
of Sovereign Man blog enumerated 8 steps in the playbook of " Respond to
this post by replying above this line
New post on *Fellowship of the Minds*
<http://fellowshipoftheminds.com/author/eowyn2/> HSBC bank restricts large
cash withdrawals, then backs
off<http://fellowshipoftheminds.com/2014/01/27/hsbc-bank-restricts-large-cash-withdrawals-then-backs-off/>
by
Dr. Eowyn <http://fellowshipoftheminds.com/author/eowyn2/>
[image:
capital-controls]<http://fellowshipofminds.files.wordpress.com/2014/01/capital-controls.jpg>
Tyler Durden of
ZeroHedge<http://www.zerohedge.com/news/2013-03-26/expect-these-eight-steps-government%E2%80%99s-playbook>
warned
us that when bankrupt insolvent governments “run out of fingers to plug the
dikes,” history shows that they fall back on a very limited playbook. Simon
Black of Sovereign Man
blog<http://www.sovereignman.com/trends/expect-these-eight-steps-from-the-governments-playbook-11440/>
enumerated *8 steps in the playbook of bankrupt governments* (see my post
of April 3, 2013: “How bankrupt govt steals your money in 8
steps<http://fellowshipofminds.wordpress.com/2013/04/03/how-bankrupt-govt-steals-your-money-in-8-steps/>
”):
1. Direct confiscation (the Cyprus model)
2. Taxes
3. Inflation
4. *Capital controls*
5. Wage and price controls
6. Wage and price controls on steroids
7. Increased regulation
8. War and national emergency
The 2013 Great Cyprus Bank Robbery was our first wake-up call. In debt up
to its eyeballs, Cyprus’ government made a deal with their Eurozone
financial masters to confiscate steal 80% of “large” bank
deposits<http://fellowshipofminds.wordpress.com/2013/03/30/cyprus-now-says-80-of-large-bank-deposits-can-be-confiscated/>
.
At the time, I warned that Americans should be on the alert to copycat
moves by our feral government and bankers, all the more because the American
Left actually applauded the theft of Cypriots’ bank
savings<https://fellowshipofminds.wordpress.com/2013/03/21/the-left-approve-of-stealing-your-bank-savings/>
.
The signs are accumulating that we are approaching Step #4: Capital
controls. *Banks are "testing the waters" on preventing a bank run.*
Three months ago, on October 17, 2013,
reports<http://fellowshipoftheminds.com/2013/10/19/capital-controls-begin-chase-bank-limits-cash-withdrawals-bans-international-wire-transfers/>came
that *Chase
Bank*, one of the Big Four
banks<http://en.wikipedia.org/wiki/Big_Four_%28banking%29#United_States>
in
the United States announced that, in a month, it would (a) ban
international wire transfers and (b) limit all banking transactions,
including cash withdrawals, to no more than $50,000 per month.
After the information went viral, *Forbes
<http://www.forbes.com/sites/halahtouryalai/2013/10/17/no-jpm-isnt-banning-international-wire-transfers-no-limits-on-withdrawals-either/>*
obtained
a clarification from Chase that (a) the restrictions apply "only" to small
business accounts; and that (b) those accounts can free themselves of the
restrictions by upgrading to Chase’s Performance Business Checking where
there’s no cash activity limit, and international wires are available for
an additional fee.
*Forbes* then dismissed the changes instituted by Chase as “more about
Chase looking to generate more revenue from fees than an attempt to control
capital.” Ha Ha Ha Ha.
Now, it's HSBC <http://en.wikipedia.org/wiki/HSBC>.
[image:
HSBC_global_locations]<http://fellowshipofminds.files.wordpress.com/2014/01/hsbc_global_locations.png>
HSBC is one of the world's largest banks; a British multinational banking
and financial services company headquartered in London. (The HSBC name is
derived from the initials of the Hongkong and Shanghai Banking
Corporation. The bank had originated in Hong Kong and Shanghai, where
branches were first opened in 1865.)
Three days ago, on Jan. 24, 2014,
BBC<http://www.bbc.co.uk/news/business-25861717>reported that *HSBC
customers have been prevented from withdrawing large amounts of cash,
£5,000 to £10,000 ($8,282 to $16,562), because they could not provide a
"satisfactory" explanation for their withdrawal. *
Imagine that: A bank demands to know why you want to withdraw YOUR money!
And if the bank does not approve of your reason, then it refuses to give
you YOUR money!
Adding insult to injury, HSBC admitted it has not informed customers of the
change in policy, which was implemented in November.
Here's the experience of one HSBC customer, Stephen Cotton:
Cotton went to his local HSBC branch this month to withdraw £7,000
($11,593) from his instant access savings account to pay back a loan from
his mother. A year before, he had withdrawn a larger sum in cash from HSBC
without a problem. But this time it was different. As he recounts it: "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."
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
($4,968) and they said, 'OK, we'll give you that.' "
Cotton then 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.
*A day later, on Jan. 25, 2014, faced with a furious backlash against its
unannounced restriction on cash withdrawals, HSBC backed off.*
As reported by Tyler Durden for Zero
Hedge<http://www.zerohedge.com/news/2014-01-26/furious-backlash-forces-hsbc-scrap-large-cash-withdrawal-limit>,
while insisting that the restriction was for your own good -- "to protect
our customers" -- HSBC nevertheless rescinded its policy and issued this
statement<https://www.newsroom.hsbc.co.uk/articles/statement_on_large_cash_withdr>
:
*Statement On Large Cash Withdrawals*
*25 Jan 2014*
As a responsible bank 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. Large cash
transactions have inherent security issues and leave customers with very
little protection should things go wrong, by asking customers the right
questions, we can explore whether an alternative payment method might be
safer and more convenient for them.
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
apologise to any customer who has been given incorrect information and
inconvenienced.
H/t FOTM's swampygirl
See also “Is it true banks won’t let you withdraw
cash?<http://fellowshipofminds.wordpress.com/2011/10/23/bank-cash/>,”
Oct. 23, 2011.
*~Eowyn*
*Dr. Eowyn <http://fellowshipoftheminds.com/author/eowyn2/>* | January
27, 2014 at 7:00 am | Tags: Bank
run<http://fellowshipoftheminds.com/?tag=bank-run>,
bank withdrawal
restrictions<http://fellowshipoftheminds.com/?tag=bank-withdrawal-restrictions>,
capital controls <http://fellowshipoftheminds.com/?tag=capital-controls>, Chase
bank <http://fellowshipoftheminds.com/?tag=chase-bank>, Cyprus bank
levy<http://fellowshipoftheminds.com/?tag=cyprus-bank-levy>,
Simon Black <http://fellowshipoftheminds.com/?tag=simon-black>, Stephen
Cotton <http://fellowshipoftheminds.com/?tag=stephen-cotton>, Wells
Fargo<http://fellowshipoftheminds.com/?tag=wells-fargo>,
Zero Hedge <http://fellowshipoftheminds.com/?tag=zero-hedge> | Categories:
Banks <http://fellowshipoftheminds.com/?cat=19405448>,
Economy<http://fellowshipoftheminds.com/?cat=17656840>,
Obama's America <http://fellowshipoftheminds.com/?cat=12285619> | URL:
http://wp.me/pKuKY-p6U
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