Big Banks Make a Move

2014 December 8
tags:
by drdog09

The push was prompted by pending rules aimed at ensuring banks stockpile enough assets that can be easily converted to cash to cover a deposit flight in a crisis, the newspaper said. Because big, uninsured deposits are viewed as more susceptible to fast withdrawal, banks would be required to bolster related reserves rather than pursuing more profitable investments.

JPMorgan’s commercial bank recently told some clients it would start charging monthly fees on deposit accounts from which they can withdraw money at any time, the Journal wrote, citing an October memo it reviewed. The charges take effect Jan. 1 for U.S. accounts, and later for international accounts, the newspaper cited the memo as saying.

Spokesmen for the banks in Hong Kong either said they had no immediate response, declined to comment or didn’t respond to messages seeking comment.

Banks, struggling to balance rising costs for certain deposits, already have begun charging customers for holding large amounts of euros, passing on fees imposed by the European Central Bank. Bank of New York Mellon Corp., which holds money for institutional investors, began charging for euro deposits on Oct. 1, Chief Financial Officer Todd Gibbons said that month, joining peers in passing along so-called negative interest rates.

Source:

In other words the big banks are asking their high balance customers to move assets elsewhere. Which if you are in that position is where? Especially since all the banks are doing this.

Also begs the question as to why? Simple answer is the Dodd-Frank finance bill of two years ago are coming home to roost. The additional reserve requirements put these banks in a bind. So rather than keep a customer they would rather kick them out and avoid the whole mess. Kinda backwards for a bank don’t ya think?

It also telegraphs something else. These banks reserve positions to date are so low that they are affected by the new rules. That should send up flares to anyone who is a depositor at any of these institutions.

Tic…Tic…Tic

15 Responses leave one →
  1. 2014 December 8 8:03 pm
    [1]
    drdog09 permalink

  2. 2014 December 8 9:13 pm
    [2]
    gnqanq permalink

    As Anne Barnhardt once said,

    “The only real assets are those that you can stand in front of with an assault weapon and defend.”

    Yep, unless it is some HARD asset like, gold, silver, copper wire, pvc piping or other hard goods – cash is going to be worthless.

  3. 2014 December 9 2:24 am
    [3]

    In a move that was a complete shock to no one!

    “The secret Foreign Intelligence Surveillance Court has authorized a 90-day extension to the Section 215 bulk telephone collection program used by the National Security Agency, giving the agency through the end of February to run the program in the absence of legislation establishing a new authority.

    On Monday, the Office of the Director of National Intelligence revealed that the administration had applied for a 90-day extension to the existing Section 215 authority, and that the FISC had approved the request, extending the authority through Feb. 27.”

  4. 2014 December 9 6:45 am
    [4]

    It’s about time

  5. 2014 December 9 7:29 am
    [5]
    justrand permalink

    Tic…tic…tic indeed, drdog

    The banking/financial situation you describe above is just one of the elements of the ‘perfect storm’ heading our way.

    – Obama is hell bent on undermining and/or outright destroying every element that remains of American values and governance…and has 2 years left
    – Putin, et al, realize that the next President could POSSIBLY try to rebuild our nation and it’s military…and so THEY have 2 years left too
    – Iran, ISIS, Hamas, et al have the same window of opportunity

    It’s gonna be a scramble to see who destroys us first

  6. 2014 December 9 7:46 am
    [6]
    bc3b permalink

    As late as the 1980s there we 8-9 major banks headquartered in Detroit. Today there are none. National Bank of Detroit became NBD after it started acquiring smaller banks outside the Detroit area. Then it merged with First Chicago. Next it was acquired by Bank One. Now, what was Bank One is Chase.

    Until 25 years ago branch banking was illegal in Illinois. If First Chicago wanted a bank in Oak Brook, it had to set up a separate corporation.

    In the past 40 years everything has swung in favor of the big banks. and, now they are “too big to fail.”

  7. 2014 December 9 10:06 am
    [7]
    drdog09 permalink

    Aaaaaah, yep

  8. 2014 December 9 1:32 pm
    [8]

    “– Putin, et al, realize that the next President could POSSIBLY try to rebuild our nation and it’s military…and so THEY have 2 years left too”

    Surely you jest. 😉

  9. 2014 December 9 1:38 pm
    [9]

    “Along with the primary goal of expanding the availability of health insurance, the Affordable Care Act aims to make the use of Electronic Health Records (EHR) universal. This plan actually began with the 2009 stimulus (the American Recovery and Reinvestment Act), which included the Health Information Technology for Economic and Clinical Health (HITECH) Act. Doctors and other health providers have been offered incentives to convert patient information and health histories to a compatible and transferable electronic format, and as of June 2014, 75 percent of eligible doctors and 92 percent of eligible hospitals had received payments under the program.

    This week, the Department of Health and Human Services (HHS) announced the release of the Federal Health IT Strategic Plan 2015-2020, which details the efforts of some 35 departments and agencies of the federal government and their roles in the plan to “advance the collection, sharing, and use of electronic health information to improve health care, individual and community health, and research.” …
    http://www.weeklystandard.com/blogs/feds-plan-35-agencies-help-collect-share-use-electronic-health-info_821037.html

    Given everything we know about the US and State governments past and especially present, if this doesn’t scare you, it should. In a perfect theoretical world this would probably be a net-benefit, but sadly we don’t live in that world, not even close and never will.

  10. 2014 December 9 1:49 pm
    [10]
    drdog09 permalink

    9,

    Much more insidious if you ask me.

    Feinstein is up on the senate intelligence committee today haranguing the CIA about torture. What a better way to `off` someone than have them get a deadly disease then just behind the scenes have HHS just deny them care? The death certificate will simply say death by natural causes.

    The Soviets did this and I would not put it past the US these days.

  11. 2014 December 9 2:02 pm
    [11]

    GOP Spending Bill Gives Nearly $1 Billion To Aid Border Migrants
    9:24 AM 12/09/2014
    NEIL MUNRO

    The GOP’s draft 2015 “omnibus” spending bill reportedly includes $948 million to help poor and unskilled Central American migrants establish themselves in the United States, but includes no effective restrictions on President Barack Obama’s plan to provide work permits and tax payments to millions of resident illegal immigrants.

    That new spending works out to $16,928 for each of the 56,000 youths, young adults and children who crossed the border during the 12 months up to October 2014.

    Prior to October, Obama’s officials sent only 1,901 of the migrants back home to Honduras, El Salvador and Nicaragua, according to a federal report.

    Much of the $948 million may also be used to care for the next wave of illegals who could flood across the border during the summer. The influx in the summer of 2015 is expected to be large, because Obama is offering work permits and social security numbers to at least five million illegals already in the country.
    ——–

    Everything is awesome.

  12. 2014 December 9 2:36 pm
    [12]

    http://www.ktvu.com/story/27579555/protesters-snarl-traffic-in-east-bay-with-march-down-i-80

    Why are people stopping for these people? In CA on divided highways or elsewhere do pedestrians still have the right of way?

    That is not he case here in GA, if people want to improperly cross (anywhere other than a crosswalk) they do so entirely at their own risk, I’ve seen a couple cases in recent years where even on smaller roads a crossing at improper place resulted in a splattering and the drivers have rightfully not been charged or convicted. Pretty sure these protesters would be getting run over here without much fan fair and rightfully so, particularly if they tried this shit on say 285 or 85\75, I sure as hell wouldn’t stop. Depending on if I had time I would probably slow down enough as too keep control of the car while plowing through them. Stopping for a mob in the middle of the road? You must be joking.

  13. 2014 December 9 3:32 pm
    [13]

    Come to Texas and try that shit on I-35.

  14. 2014 December 9 3:40 pm
    [14]
    RepublicanPundit permalink

    IP, Try it on I 45 here in Conroe!!!

  15. 2014 December 9 4:13 pm
    [15]
    drdog09 permalink

    Oh heck even I-20 we would run them down.

    Go out to West Tx where its legal to go 85mph, they would be road kill.

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