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HSBC imposes restrictions on large cash withdrawals (Bank Run Fears in UK)
BBC News ^ | 24 January 2014 Last updated at 14:59 ET | Bob Howard

Posted on 01/26/2014 9:33:19 AM PST by SkyPilot

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. New rules

Stephen Cotton went to his local HSBC branch this month to withdraw £7,000 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A year before, he had withdrawn a larger sum in cash from HSBC without a problem.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 told Money Box: "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. Continue reading the main story “Start Quote

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.

(Excerpt) Read more at bbc.co.uk ...


TOPICS: Business/Economy; Government; News/Current Events; United Kingdom
KEYWORDS: bankrun; cash; cashwithdrawals; collapse; economy; hbsc; hsbc; unitedkingdom
Related: A Bank Run in London? Debt Rattle 2014


1 posted on 01/26/2014 9:33:19 AM PST by SkyPilot
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From yesterday:

China's Great Wall of Credit Begins to Crumble

2 posted on 01/26/2014 9:37:01 AM PST by SkyPilot
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To: SkyPilot

These depositors thought their savings (excess capital) was safe on deposit. Actually the bank lent that capital mostly to government who promptly spent it on consumption. That is what happens when as a culture you deficit spend, print money, suppress productive capitalism with rules, regulations and taxes and consume more than you produce. A liquidity crisis is simply a guise of poverty.


3 posted on 01/26/2014 9:43:06 AM PST by allendale
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To: SkyPilot


4 posted on 01/26/2014 9:43:26 AM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: Chode

http://truthingold.blogspot.ca/2014/01/something-ominous-may-be-coming-at-us.html?m=1


5 posted on 01/26/2014 9:44:16 AM PST by jester221 (Stupid pills, with all due respect, should have an obama-proof lid)
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To: Chode

This seems to be an effective way to start a full scale bank run...


6 posted on 01/26/2014 9:45:37 AM PST by GOPJ (Liberals never let something as petty as being 100% wrong stop them - Blood of Tyrants)
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To: SkyPilot

This is just to prevent bank runs on printed money. Woe to those that want to remove their gold.


7 posted on 01/26/2014 9:46:26 AM PST by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: jester221
something wicked this way comes...
8 posted on 01/26/2014 9:51:24 AM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: allendale

If I were asked the answer would be “I’m going to spread it out on my bed and roll around on to achieve sexual gratification. I’ll return it afterwards for deposit into my account.”


9 posted on 01/26/2014 9:52:05 AM PST by glorgau
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To: SkyPilot

Have their water cannons been delivered yet?


10 posted on 01/26/2014 9:52:25 AM PST by Irenic (The pencil sharpener and Elmer's glue is put away-- we've lost the red wheelbarrow)
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To: SkyPilot

The Millbury Savings Bank is still in business operating from the same location.


11 posted on 01/26/2014 9:52:55 AM PST by Lonesome in Massachussets (In the long run, we are all dead.)
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To: jester221

Over the years, I’ve read that at least some banks in the US question customers who want to make large withdrawals, particularly if the customer is older. They do so in an effort to protect their customers from being scammed.

Based on the story, that’s what this UK bank is doing, although they seem to have gone overboard.

Connecting it to a possible “bank run” seems a little excessive based on what is presented. If an effort to prevent bank runs is suspected, the story ought to cover more than one bank.


12 posted on 01/26/2014 9:53:17 AM PST by KrisKrinkle (Blessed be those who know the depth and breadth of their ignorance. Cursed be those who don't.)
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To: GOPJ
kind of self fulfilling prophecy
13 posted on 01/26/2014 9:53:55 AM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: Kartographer

Ping for your prep distro list.


14 posted on 01/26/2014 9:54:34 AM PST by SwankyC (Democrats and Republicans agree, govt coercion is OK if it fits your idea of whats OK)
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To: SkyPilot

He was overly compliant and cooperative with their attempt to steal his money (yes, “steal”; if they took it under a pretense and won’t give it to him what is that but theft). His response should have been “Then close my account right now. This second. I want every penny.”


15 posted on 01/26/2014 9:55:09 AM PST by Still Thinking (Freedom is NOT a loophole!)
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To: C210N

they could not provide evidence of why they wanted it.
Did not know this was in the contract how about its my money and because I want it


16 posted on 01/26/2014 9:57:53 AM PST by ronnie raygun
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To: SkyPilot

If you can’t get cash out, why don’t folks simply write out a check or make a large credit card purchase for something of value, real estate, PMs etc?
It is rather strange that the bank is promoting an image of potential instability and weakness by going after those that just want a few thousand in cash. This behavior would only encourage widespread suspicion and lead customers to start broad based withdrawals and transfers, and discourage potential depositors and investors.
A bank’s image s everything. Once it’s seen as corrupt, it will fail. Now that the government is seen as corrupt, and banks are seen as extensions of the government, look for bank runs to accelerate on any bit of bad news or difficulty.


17 posted on 01/26/2014 10:02:22 AM PST by grumpygresh (Democrats delenda est. New US economy: Fascism on top, Socialism on the bottom.)
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18 posted on 01/26/2014 10:15:28 AM PST by RedMDer (Happy with this, America? Make your voices heard. 2014 is just around the corner. ~ Sarah Palin)
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To: allendale; Chode; GOPJ; C210N; Irenic; glorgau; Lonesome in Massachussets; Kartographer; SwankyC; ..
Check this out - from Drudge front page:

Prove it: Bank blocking some customers from making large withdrawals without ‘evidence’ of spending need

HSBC says it’s all done in the name of customer protection. "The reason being we have an obligation to protect our customers, and to minimize the opportunity for financial crime.”

This is a national and international trend. If you take out cash, the banks are now asking "What do you want it for?" Whatever happened to "Mind you own business - it's my money."

Governments are now imposing more and more control on every aspect of our lives.

Cash provides some freedom from the Big Brother observance of every single transaction in our entire lives, but I think cash is very rapidly on its way out. For months now I have seen people paying for things using their smart phones.


19 posted on 01/26/2014 10:29:41 AM PST by SkyPilot
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To: SkyPilot
"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.

Because it is my (expletive) money is all the (expletive) evidence the bank is ever going to get.

20 posted on 01/26/2014 10:33:17 AM PST by LegendHasIt
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To: SkyPilot

ping


21 posted on 01/26/2014 10:34:07 AM PST by laplata (Liberals don't get it .... their minds are diseased.)
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To: glorgau

Best answer yet!


22 posted on 01/26/2014 10:39:48 AM PST by Ellendra ("Laws were most numerous when the Commonwealth was most corrupt." -Tacitus)
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To: KrisKrinkle

They are acting in line with what they feel their role is and not, in my view, doing so as a matter of protecting the elderly. Here is why:

Back in the 80’s when I was stationed in the UK, we set-up a checking account with the local Barkley’s Bank.

With the check-book came a ‘bank guarantee card.’ This card had an amount stamped on it.

When you purchased something with a check you had to show the store your bank guarantee card. The bank would only guarantee the amount printed on the card and any amount over that would be the responsibility of the store, not the bank, if the check bounced.

In addition, there was a calendar on the back of the checkbook, and when you wrote a check the store would mark that date on you checkbook calendar. They did this to identify to other stores that you had already wrote a check that day and might be over the ‘guarantee’ limit.

This process was dictated by the bank and the bank basically looked at you are an irresponsible child when it came to your own money.

So, IMHO, what they are doing now is in line with what they did years before: They are not doing this to protect the elderly or whoever, but to protect themselves.


23 posted on 01/26/2014 10:45:12 AM PST by Hulka
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To: SkyPilot

Major Chinese banks raise deposit interest to maximum
http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1202&MainCatID=12&id=20140125000103

Trying to hold onto cash?


24 posted on 01/26/2014 10:51:01 AM PST by EBH ( The Day of the Patriot has arrived.)
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To: SkyPilot

Four or five years ago I wanted to withdraw 5,000 cash from my BoA account, they would only let me take out part of it—2,500? 3,000? (don’t recall the exact).

My husband was with me and so he just withdrew the remainder from his account and I transferred it back to him.

I also noticed while in line that an elderly man was taken out of the bank teller line and shown to the ATM.

I still don’t understand why that happened. Somebody told me that you need to contact the bank ahead for such a withdrawal.

Guess I’m just a silly hick because I figured it’s my money and I can withdraw it whenever I want. It’s not like the bank didn’t have it.

/shrug...I don’t understand the world today.


25 posted on 01/26/2014 10:55:36 AM PST by Irenic (The pencil sharpener and Elmer's glue is put away-- we've lost the red wheelbarrow)
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To: LegendHasIt

Legally, once you deposit funds in a bank, it is NO LONGER your money. It is the bank’s, and you just have a lien on it, similar to the mortgage they hold, on the home you own.


26 posted on 01/26/2014 11:00:44 AM PST by 2harddrive
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To: SkyPilot

Legally, once you deposit funds in a bank, it is NO LONGER your money. It is the bank’s, and you just have a lien on it, similar to the mortgage they hold, on the home you own.


27 posted on 01/26/2014 11:00:56 AM PST by 2harddrive
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To: allendale

Legally, once you deposit funds in a bank, it is NO LONGER your money. It is the bank’s, and you just have a lien on it, similar to the mortgage they hold, on the home you own.


28 posted on 01/26/2014 11:01:13 AM PST by 2harddrive
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To: Still Thinking

Legally, once you deposit funds in a bank, it is NO LONGER your money. It is the bank’s, and you just have a lien on it, similar to the mortgage they hold, on the home you own.


29 posted on 01/26/2014 11:01:42 AM PST by 2harddrive
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To: LegendHasIt

But if you say that you want to buy drugs, maybe HBSC will be more. sympathetic. You would after all help fund HBSC’s operations.

http://www.cbc.ca/news/business/hsbc-s-1-9b-money-laundering-settlement-approved-by-judge-1.1377272


30 posted on 01/26/2014 11:02:00 AM PST by grumpygresh (Democrats delenda est. New US economy: Fascism on top, Socialism on the bottom.)
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To: LegendHasIt

Legally, once you deposit funds in a bank, it is NO LONGER your money. It is the bank’s, and you just have a lien on it, similar to the mortgage they hold, on the home you own.


31 posted on 01/26/2014 11:02:05 AM PST by 2harddrive
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To: Irenic

Legally, once you deposit funds in a bank, it is NO LONGER your money. It is the bank’s, and you just have a lien on it, similar to the mortgage they hold, on the home you own.


32 posted on 01/26/2014 11:02:41 AM PST by 2harddrive
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To: EBH

Interesting story, thanks for providing it. I didn’t see anything in the writeup, though, as to what the Chinese bank interest rate was, only that it was 10% higher. Any idea what their effective rate is?


33 posted on 01/26/2014 11:03:34 AM PST by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: Irenic
Guess I’m just a silly hick because I figured it’s my money and I can withdraw it whenever I want.

Bank Deposits

Read the part about surrendering title to your cash. You are essentially an unsecured creditor.

34 posted on 01/26/2014 11:06:06 AM PST by Stentor (Maybe the Goldman Sachs thing is just a coincidence.)
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To: Stentor
Read the part about surrendering title to your cash. You are essentially an unsecured creditor

True - and just think how "secure" your 401K or IRA really are.

People think there would have to be all sort of hoops for the government to jump through before that would happen, and they even believe the courts will stop them. It will never even get to the courts if there is a big enough "crisis."

35 posted on 01/26/2014 11:14:44 AM PST by SkyPilot
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To: 2harddrive

Yup.


36 posted on 01/26/2014 11:15:11 AM PST by SkyPilot
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To: SkyPilot

Update:

Furious Backlash Forces HSBC To Scrap Large Cash Withdrawal Limit

http://www.zerohedge.com/news/2014-01-26/furious-backlash-forces-hsbc-scrap-large-cash-withdrawal-limit


37 posted on 01/26/2014 11:17:09 AM PST by mojito (Zero, our Nero.)
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To: Irenic
Since most major transactions today are all electronic, the government can see everything.

Years ago, there were only "flags" thrown up if you were frequently withdrawing or depositing in excess of $10,000. Today, that threshold can be zero. Just as the NSA can run millions of phone searches using spy software, the banks and the government "see" everything.

38 posted on 01/26/2014 11:18:22 AM PST by SkyPilot
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To: Stentor

I still don’t understand it or maybe I should say I don’t like it. hahaha


39 posted on 01/26/2014 11:18:37 AM PST by Irenic (The pencil sharpener and Elmer's glue is put away-- we've lost the red wheelbarrow)
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To: SkyPilot

I hope the government gets cataracts.


40 posted on 01/26/2014 11:19:54 AM PST by Irenic (The pencil sharpener and Elmer's glue is put away-- we've lost the red wheelbarrow)
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To: 2harddrive

But they changed the terms after the money changed hands, thus my claim that refusing to return the money should count as theft.


41 posted on 01/26/2014 11:29:34 AM PST by Still Thinking (Freedom is NOT a loophole!)
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To: Irenic
I hope the government gets cataracts.

Foreign cars are much more popular these days.

42 posted on 01/26/2014 11:30:16 AM PST by Still Thinking (Freedom is NOT a loophole!)
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To: 2harddrive

You should be able to get your money out in one form or another. SCOTUS has interpreted the first amendment to include freedom of association, so you should be able to threaten them with a first amendment violation if necessary. NCAAP VS Alabama is the usual reference case.
The bank might impose conditions or control your money, but it doesn’t own it. If the bank thought it actually owned your money, by you simply depositing your money in the bank, or any language that implied that you were giving up ownership voluntarily to the bank, that would probably be interpreted as a conspiracy by the bank to commit theft, and the contract would be void.


43 posted on 01/26/2014 11:31:11 AM PST by grumpygresh (Democrats delenda est. New US economy: Fascism on top, Socialism on the bottom.)
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To: KrisKrinkle

Overboard, I guess!. Asking the guy to get a note from his Mother is way out there on the stupid gangplank. If krap like that starts to happen regularly the bank had better hope it’s fireproof. 10K$ is hardly a large amount of cash. Anybody trading guns, cars, trucks, cattle, coins or any number of other things needs bills, not checks, not credit cards, not good looks. Asking my Mom for a note like that would not only have gotten my account moved but would have resulted in my Mom moving every dime she had also. My old Mom dam near shut down a local bank once because a clerk shot her mouth off about how much money another person had on account. By the time she got thru spreading the word the bank prezzy, who was an old friend, came by to see her , promised the problem had been fired, and begged her to lighten up. Mom was mad and it wasn’t even her account. She saw the Depression, didn’t trust bankers entirely, and she got it done without firing a shot.


44 posted on 01/26/2014 12:23:32 PM PST by cherokee1 (skip the names---just kick the buttz)
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To: Irenic

A small branch bank might not actually have 25K, 50K or so in the vault. My banks ask me to let them know a day ahead of time if I need bigger bills. They also have a rule about withdrawals from the drive-up. They say they don’t want to count out big numbers where it can be seen from outside. So you just go inside for bigger deals.


45 posted on 01/26/2014 12:31:58 PM PST by cherokee1 (skip the names---just kick the buttz)
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To: cherokee1

We were inside and it wasn’t a smaller branch. I usually only take out a few dollars in cash but if I ever want to take out a few thousand, I’ll probably call ahead. It’s still annoying in my opinion. A person may not always know a day ahead that they need to do this.


46 posted on 01/26/2014 12:44:11 PM PST by Irenic (The pencil sharpener and Elmer's glue is put away-- we've lost the red wheelbarrow)
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To: SkyPilot

Ah well, I see what the problem for Mr. Cotton is. He holds the mistaken belief that he is a valued customer of the HSBC.

Had he said, “ Just want to wash some of my quick and ready ( wink, wink ) eh. Friends from Mexico and Columbia ( wink,wink) in for the weekend what.”, he would have received the full amount with a smile.

Because:

“Regulators worldwide are cracking down on money laundering controls just over a year since HSBC paid a hefty $1.92 billion to settle U.S. charges that it allowed Mexican and Colombian cartels to launder drugs proceeds - and lawyers said they expected more penalties to follow.”


47 posted on 01/26/2014 12:56:59 PM PST by Covenantor ("Men are ruled...by liars who refuse them news, and by fools who cannot govern." Chesterton)
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To: SkyPilot
Hong Kong and Shanghai Banking Corporation. Does any more need to be said?

HSBC has stopped Chinese from converting renminbi to foreign currency for the next 9 days due to a "systems upgrade"--during Chinese New Year? Keep moving, nothing to see here.

48 posted on 01/27/2014 3:37:40 AM PST by mikey_hates_everything
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To: mikey_hates_everything

Sorry, that’s Bank of China, not HSBC. Wait, what?


49 posted on 01/27/2014 3:38:36 AM PST by mikey_hates_everything
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To: grumpygresh

“The bank might impose conditions or control your money, but it doesn’t own it.”

No, the bank DOES own it, just like you own your house that is mortgaged to them. That is the straight law.


50 posted on 01/29/2014 12:15:59 PM PST by 2harddrive
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