HSBC Group – HSBC Holdings plc is a global financial services company headquartered in Canary Wharf, London, United Kingdom. According to a newsletter I get in my inbox daily, (Doug Casey’s International Man) an HSBC depositor in Swindon, UK recently tried to withdraw a chunk of cash -£10,000 to be precise (roughly 16,600 in greenbacks) and was told that he could withdraw no more than £1,000 without providing adequate proof as to how the funds would be used.
Excuse me? The fracking bank is playing ‘mommy & daddy’ with how this bloke intends spends his money? Yep you got it. The HSBC spokesman stated:
“In these instances we may also ask the customer to show us evidence of what the cash is required for. The reason for this is twofold, as a responsible bank we have an obligation to our customers to protect them, and to minimise the opportunity for financial crime.”
The general outcry from depositors led the bank to back down saying it was a misunderstanding by a mid-level manager (sound familiar? IRS heavy hand came out of Cleveland), but that’s not true because the same thing is occurring in other branch locations. It’s the instituting of capital controls -government allowing banks to control depositors’ funds. It may not have been 100% successful similar to Panama’s experiment into capital squeezing recently, but it is being seen more and more everywhere.
Sound crazy, unbelievable, nuts? Yes, but it’s not. First Hawaiian Bank wanted to fingerprint me the other day when I wanted to cash a very small denomination 2nd party check written on that bank with complete ID. I refused to be treated like a criminal in my own community and left.
The economic recovery story is all over the paper and on the news every evening unless you missed the juxtaposed blurb about skyrocketing poverty levels & food stamp use. Hell, Gov Christy wants the public schools to start serving dinners. How good can the recovery be? Our own governor brags in full-page color ads (yes it’s an election year!) about Hawaii’s $844M surplus, failing to mention our $25 BILLION unfunded liability elephant in the room.
Capital controls will continue and it’s all made legal in Dodd-Frank which says in the fine print that depositors are unsecured creditors of the bank (think Cyprus). And lest you have faith in FDIC, the truth is FDIC has only enough cash to cover .25 percent of all deposits and .0008 percent of banking derivatives.
Aloha, Mikie ~just a blogger (fightin’ like a girl)