Bank-run alarm – HSBC restricts large cash withdrawals

For those of us with the tin foil hats who have been raising the warning flag regarding the banksters, alarmed that indeed we need to be concerned about the safety of our money, I bring you this from Zero Hedge. So while Huckleberry spins around in the news cycle with his indelicate remarks regarding women’s libido, and the asinine story of the Seattle Seahawks football player, the real news gets buried on some micro bloggers pages. Here we go:

Bank-Run Fears Continue; HSBC Restricts Large Cash Withdrawals

Following research last week suggesting that HSBC has a major capital shortfall, the fact that several farmer’s co-ops were unable to pay back depositors in China, and, of course, the liquidity crisis in China itselfnews from The BBC that HSBC is imposing restrictions on large cash withdrawals raising a number of red flags. The BBC reports that some HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it. HSBC admitted it has not informed customers of the change in policy, which was implemented in November for their own good: “We ask our customers about the purpose of large cash withdrawals when they are unusual… the reason being we have an obligation to protect our customers, and to minimise the opportunity for financial crime.” As one customer responded: “you shouldn’t have to explain to your bank why you want that money. It’s not theirs, it’s yours.”

H/T:Zero Hedge

A bit of old news about this fine bank. WSJ  Dec. 11, 2011

WASHI:NGTON—  PLC on Tuesday acknowledged that for years it ignored possible money laundering as part of a record $1.9 billion settlement with U.S. authorities that caps the bank’s disastrous foray into the U.S. market.

The U.K.-based banking company is expected to forfeit nearly $1.3 billion as part of a deferred prosecution agreement, the largest-ever U.S. forfeiture for a bank, according to people briefed on the agreement between HSBC and multiple U.S. agencies. The deal includes a civil fine of more than $650 million, according to these people.

As part of the agreement, the bank will admit to violating the Bank Secrecy Act, the Trading with the Enemy Act and other U.S. laws intended to prohibit money laundering, a government official said.

In a statement Tuesday, HSBC confirmed the U.S. settlement, saying it expected reach a similar agreement with UK authorities soon

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