In the past month, I have learned of two cases where LARGE banks (US Bank, and Bank of America), have refused to honor legitimate checking account (demand deposit) withdrawal requests for a larger amount of cash! Let me begin by pointing out…..THIS IS FRAUD!!! I have encouraged the harmed depositors to reach out to the local 9-News station in Denver, and publicize what they experienced. Here are their stories as relayed to me.
In both cases below, the harmed depositors were attempting to withdraw CLEARED funds from plain old checking accounts.
A “checking” account is also known as a “demand deposit” account; meaning when you demand your deposit, the bank MUST deliver right then!
A bank MAY require a day or two delay if they don’t have the cash immediately on hand, or they MAY refer you to another branch. A bank branch typically has less than $200,000 on hand, and if a depositor wants to withdraw say $50,000, it could cause the bank issues with other depositors. Calling ahead for an unusual transaction is best practice. Still, there should NEVER be more than a day or two delay for a large cash withdrawal.
For all cash withdrawals of $10,000 or greater, the bank IS required to file forms with the US Treasury, to flag possible illegal transactions. But, if you are doing nothing illegal, this should be of no concern. Perhaps you want to buy a used car the next day. Or perhaps you would rather have cash on hand since the banks don’t pay interest any more. Or perhaps you don’t trust banks and want to hold your own money!
A 71-year old friend of mine, of sound mind and body, felt that it would be a good idea to have $20,000 in cash, in his possession, in case of a financial crisis again in America. He is watching the “repo market” bank bailouts currently underway, as well as an overpriced stock market, and has legitimate concern about the safety of his money stored in banks, especially banks with TRILLIONS of dollars of unsafe derivatives on their balance sheets being used like a compulsive gambler in a Las Vegas casino.
For OVER A MONTH, this person has been attempting to withdraw HIS OWN MONEY ($20,000) from HIS OWN ACCOUNT in cash at US Bank, and has not yet been successful.
First they told him he needed to go to another branch. Arriving at the other branch, they told him he had to have an appointment…..Which is bullshit because this is a DEMAND DEPOSIT account! He just needs to show up and DEMAND his deposit. Once he had the appointment, they told him he needed an appointment instead with a manager. Once he had the appointment with the manager, he was asked to wait another week. Delay….delay….delay!
Well, it’s been 4 WEEKS NOW, and he still doesn’t have HIS OWN MONEY returned to him!
Folks…..THIS IS FRAUD AT ITS WORST!
When I first heard this, I thought maybe it was a 1-off case. But that belief was shattered last night when I heard of a second case at a different bank, by a different depositor!
A 58-year old friend of mine, also of sound mind and competently employed, wanted to withdraw $10,000 from Bank of America for the same purpose of having cash, and possibly some gold, in his own possession in the case of a financial calamity, where the bank ATMs may not work or the banks are closed for some extended period of time. He also does not trust the banks with all the banking problems currently in play. I can’t blame him! I don’t trust banks either right now! They are NOT SAFE!
My friend’s money was in his own checking account (demand deposit account), and FULLY CLEARED! He should have been able to walk in and demand it right there…..which he did…..and Bank of America tellers refused to deliver it!
They then explained he needed to wait a week, and have an appointment with a manager. While he is not as far along in the process as my first friend from CASE #1 above, he is being given the same delay tactics!
WHAT’S WRONG WITH THE BANKS??? ARE THEY NOT SAFE?
Why are banks, specifically here US BANK and BANK OF AMERICA, behaving fraudulently by lying to their customers?
Why aren’t banks promptly delivering deposits that are properly cleared, as the LAW demands?
Why are banks appearing concerned that customers might legitimately want their own money in their own hands?
Are these banks concerned about the safety of TRILLIONS of dollars of crap derivatives on their books? Are they afraid that depositors are going to discover that their deposits are being used for UNSAFE DERIVATIVE GAMBLING?
THIS SCARES THE CRAP OUT OF ME!
When I see major US banking institutions behaving like above in “good” times, it makes me wonder what they will do when things turn bad….when these overpriced stock and bond markets actually crack!
I am becoming very very scared of banking bailouts, the potential for bank “bail ins” (where they just take depositor money….now authorized by law), and all the funny-money quantitative easing bullshit that’s been going on now for a decade!
I am scared of this idea of “negative interest rates”. How does a lender profit when they have to PAY the borrower? All credit will be shut off in such a situation! Banks are in trouble!
The system is breaking, if not already broken, and the banks above are acting like they know it!
For these reasons, I LOVE GOLD! I would encourage all readers to withdraw your cash, or a portion of it, and buy gold and silver too! It may be too late if you wait too long!