Insolvent Banks Limiting Cash Withdrawals?


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On Banks Refusing Cash Withdrawals
Posted by Ann Barnhardt – January 19, AD 2012 12:35 PM MST
I have received enough calls and emails on this within the last few
weeks to A.) cause concern and B.) merit a post.
People are having difficulty withdrawing cash from banks. I just
received the SECOND call on this from California this week. The
question is, do banks have the right to deny you cash withdrawals?

The answer is NO. They do not. And both of the men I have heard from
in California were obviously being bee-essed by their bank. The bank
couldn’t cite statute, and then started haggling over the amount of
cash withdrawals they would allow. That’s your dead give-away. If
there were ANY statute or actual rule, the bank wouldn’t set up a
conference call and then start haggling. You don’t haggle over laws
and rules.

What banks can do is ask for up to 7 days notice on a large cash
withdrawal just so that they can order the cash in special and not
completely drain their cash on hand. This is very logical and
sensible. For transactions over $10,000 the bank also does have to
file a transaction report. Again, this is standard. We may not like
it, but that has been the law for a very long time.

Also, one chap in CA reported that his bank told him that if he took
more than $20,000 out of the bank in cash that he would have to hire
an armored vehicle and security. This is an abject lie. $100 bills are
bundled in 1/2″ stacks. a 1/2″ stack contains 100 bills. Therefore
$20,000 would be two standard 1/2″ stacks of hundred dollar bills,
which would fit in ANY purse or easily into the inside pocket of any
men’s sportcoat. We aren’t talking bags and bags of cash. Cash is
still shockingly compact.

For now, what I would recommend is setting up your new destination
bank account FIRST, and then simply closing the old account with the
mega-bank and taking the deposit in the form of a cashier’s check.
Then drive the cashier’s check directly to the new bank and deposit
it. BUT, if for whatever reason you want or need cash money, no, banks
have no right to deny you cash provided you give them the sufficient 7
day notice.

Limiting cash withdrawals is a sign of an insolvent or failing banking
system. These sorts of limits are happening in Italy as we speak. It
is very telling that banks in the U.S. are now lying and dissimulating
in order to avoid and thwart cash withdrawals by their customers.

If anyone has any more details, information or insight on this
question, I would be interested to read it in an email.

24 Responses

  1. @ spitfire

    Had that been me, I would have called 911 or the police and told them I was being held against my will, when trying to acquire money from my account. Seriously, I would have filed charges against them. There would have been hell to pay.

  2. @ spitfire


  3. I had this exact problem with a major bank over a year ago. They treated me like a criminal when I asked for CASH for a check written on THEIR bank. After taking me to a private room, they left me in there and four different bank employee’s repeatedly verified my drivers license and called the writer of the check, etc.. etc.. They also repeatedly asked me why I did not want the finds in the form of a certified check. You would have thought I went in there with a gun and was trying to rob the place…. what a crock of crap. We need to abolish these entities once and for all and start utilizing local banks and credit unions.

  4. @ Joann

    Thanks…yes, I am. I had a foreclosure court hearing, in District court Tuesday, which was voluntarily dismissed w/o pejudice. Hitting me at every turn.

    I wondering what’s coming next.

    How about you? This path is daunting at times, but worth it. These folks can go to, where ever it is creeps like them go, when they pass. I think hell is too good for them.

  5. @chris

    “Just my $.02”

    More like the million dollar question. Your posts are great. Did you say you were pro se in your fight in court? Are you in federal court?

  6. TSHHTF.Big no wanted to trust the Gov…it’s melting…the yellow bricks are no more here…God help us.Stay strong.I am facing utility cut off,out of work 9&1/2 months now out of ca$h;the so called Gov emergency assistance programs(don’t want them,need to work and make “money”!!)have been cut,in half,by Obama..while he and family took a cool $4 million vaca-again..what’s wrong can’t anyone say”Royalty Class”?This ain’t no stinkin’ democracy it is a plutocracy/corporate upper case U.S. dropping into the NWOdor faster than Clinton s sold us to China…IMF in full swing we’re probably doomed but FIGHT with TRUTH,fight even if you don’t see a ghost of a chance WE ARE THE RESISTANCE.

  7. This behavior is no surprise to me. It is an utter violation of human decency. The money does not belong to them.

    As for the insurance…I have been harping about that for some time. Mostly, it has been dismissed. originators and servicers have zero “insurable interest”, hence the first part of the fraud. Then after the payout, where did the money go. We have a Master Servicer Contract and the PSA….if they did not pay to make the party of interest whole, which is the pool, investor or trust, therein is the theft of monies that does not belong to these party and they are in default of their contracts with the investor, pool, trust. If payouts have been made on behalf of the defauled mortgage, it must be paid, wherein, a release of that security interest is reasonable and lawful.

    For me, in court with these parasites and am tring to get “in discovery” to the bottom of these payouts, in addition to the forgery, fake assignments and authority issues.

    Just my $.02

  8. @DCB,

    Similar experience, different bank. In fact, I was told to open a bank account with my servicer before trying to get a modification so that the bank could see “regular activity and deposits”, which would help with the mod.

    That free account that I kept for 2 years exclusively to get the f,,,’ mod cost me $35/mo. Bank refused me a mod twice. They plaid that “you’re not late in your payments, hence not a risk of defaulting”. I got really, really mad. After jumping through every single hoop, talking to people in Panama, India, some island somewhere, all with accents so thick and such nasty attitudes (yes, they have really, really nasty attitudes!!!), I regrouped all my sh*%t, closed my account, filed a few complaints and… stopped paying and sued the hell out of it!

    Still… small potatoes. If there was a way to go after Goldman Sachs directly, I would, now that I discovered how much more widespread they are…

    Thanks, E. Toile!!! I really needed that!!!!!!!

    If there was an way to describe evil, it might look like G.S….

  9. @ ENRAGED

    Im starting to get stomach pains—–you are right GS is the root of evil–and the trunk—-they set up the boilerplate and business plans for the many defunct mortgage lenders——they designed predatory loans and failing trusts—–but they also took out insurance by putting their guys in all govt posts –hank paulsen –etc

  10. @Martha,

    In the hands of Goldman Sachs. All of it. All gone. Pooof! In the entire world.

    The enemy if not B of A or Chase. The enemy is… Goldman Sachs. They own the world’s gold reserves. They have it all.

    Want to resolve the crisis? Shoot down Goldman Sachs. Impossible to start again, on fresh and ethical bases otherwise. Look at their history!!!

    Damn I didn’t want to spend the day looking into that. Now, I have to!

  11. Just tried to withdraw $40,00 cash from Santa Barbara Bank and Trust
    THEY REFUSED, said they did not keep this much cash on premises anymore, they had to ORDER it.

    Where is the MONEY!

  12. @ CHRIS

    Im not knowingly prejudiced–but what really bothered me about begging to get my money out of CAPITAL ONE was that the bank asst mgr that directed me into her office to be lectured on carrying and using cash instead of their cards—spoke broken english and was an immigrant from South America somewhere–when i used to have fake charges put on my CITI-BANK card which Id held for 25 years–id have to call India and get they would demand all sorts of personal info–and problem was that the fake charges were from foreign sources—an added fee for intrntl charges????

    The Indians al la the CIticorp CEO also an Indian Vikram BANDIT were really abusive–they refused to shut my account–and then the fake charges just kept being added every month—even though i filed the reports stating they were unauthorized–so yes–i filed a report challenging a fake 29.95 chg for August—–then they kept adding it back to the demanded “closed” credit card account as a “recurrent charge” through november—-i had to refuse to pay the lat 130 real chgs –then started to get phone calls 6-10 times a day starting at 8:30 am-till 9:30 pm–every day—–they call the call number shows –the indian in broken english says “is this so and so” –i say yes–the call goes dead

    that is CITIBANK—i have given up ALL CREDIT CARDS–to add insult to injury—now i get a call each day AGAIN from Citi–trying to get me to sign up for a new card???? Tell me this is not intentional abuse.

    ANYBODY WITH A CITI CARD—cut it up –pay it off and hope you can get away–I had to pay the fake chgs just to stop the phone calls and close my account–i held out for 4 months–but if they have unlimited numbers of indisans working phones—you get worn down

  13. So, let me get this straight…you deposit YOUR money in the bank for them to use, invest, etc…then upon demand you cannot remove it? However, they take in nano-seconds into their institution.

    Then they lecture you? Now, what qualifications do bank employees have to lecture people, who have been reasonable and prudent about their money and provided the banks with cash reserves, for their endeavors? JUST ASKING?

  14. “WAKE UP PEOPLE, the devil is seriously at the door….it you look through the peep hole, you can see his horns. In yet more proof that the banksters own both the ReThUGlicans and Democrats it is rumored that in 48 hours, the deal with the devil will be inked in blood….” ~Matt Weidner

  15. Some bankers will file a SAR [suspicious activity report] on withdrawals for less than $10K. They are actually encouraged to do so. Perhaps to no surprise, so many such reports are generated that the fed department in charge of chasing them down does so only in a haphazard manner. [Odds are, your transaction gets ignored anyway]. If your Banker files such a report and you find out about it, and it has no objectively reasonable basis, then I would say it is time to go file yet another lawsuit against that Bank. Only when they are buried in litigation do these bums rethink their abusive behavior.

  16. Reblogged this on andthebankscomecrumblingdown and commented:
    Hello everyone.
    This post from Livinglies looks like a great place to start the count down.
    I’ll try to do my best to educate by gathering information, data and blog reposts from the most knowledgeable. In advance I want to thank Neil Garfield and his Livinglies blog and Tim McCandless and his blog for the majority of the seemingly valid information reposted here.
    Because there is so much information on the web for ProSe borrowers, I intend to focus my attention on anything and everything that will assist people in Northern California.
    I have been and still am fighting criminals trying to steal my house and I was never in default on my loan.

  17. I have heard of this many times.
    Banking, in general, burns me up.

  18. Come now judge! Are dollar bills worth anything? Ask for it is coins. And a wheel borrow!

  19. @Scot,

    That was my question. Why are people so sloppy in their reporting? I mean, either it is true and all the details should given or it’s a hoax and we can tell as the most important info is missing.

    I’ll put this on the account of hoax ’til further notice. No need to trouble myself over it.

  20. […] View the original here: Insolvent Banks Limiting Cash Withdrawals? […]

  21. Can you tell us which banks are having these problems.

  22. Iv had Capital One tell me that. Would not give me more than a few thousand –which i was moving to another bank in another state –i did not want to wait three weeks for the banks toclear even a cashiers check. And of course i received a stern lecture from the bank mgr for having cash—she is supposed to make inquiry to meet thre FINRA SAR duty–but not refuse cash–i had to remove it in separate chunks over 3 days

    Basically you ned it wire transferred with advance planning—they assume all depositors are crooks with fake identities out to take their money–what else ?? takes one to know one–or at least be afraid of one——–yeah

    I had to laugh I was making a withdrawl right across the street from my apt in Crystal City which is sandwhiched between about 6 hard-core security agencies—–I laughed when they told me it was for my protection–to prevent me being robbed in broad daylight at lunch with about 500 gun-toting feds all around—-most secure place in us but for the pentagon and whitehouse

    they kept telling me to use the cards–fees? dont like cash transactions that do not generate fees–that simple—so im sure they did “Suspicious Activity Reports {SARs]—probably have me next to a columbian drug lord cause of 10 k movement out of their bank–also they dont like you to shut down accts if there are auto deducts –whether you authorized or not—try to cut off an unauthorized debit somretime…. ha ha–wont do it–say you ned to ggo ask the party taking the unauthorized dr to please stop–no stop payments–especially if you have an overdraft that they can charge fees on

    i do not like to deal with banks –credit unions better

  23. Banks are always insolvent–they only have to keep a small percentage of reserves. This means that the man behind the curtain is slowly being revealed.

  24. i would ask for everything in one dollar bills 🙂

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