HSBC (Britain's largest bank) Restricts Large Cash Withdrawals [View all]

[dixiegrrrrl]

X-post from Economy group...

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 itself, news 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."

http://www.zerohedge.com/news/2014-01-24/bank-run-fears-continue-hsbc-restricts-large-cash-withdrawals

the article goes on to say that the bank claims this is an effort to prevent "financial crime"....
In truth, the bank has been charged with having 80 billion shortfall, in a report of last week.
"Large cash withdrawals" =3,000 pounds or more.

The Latest HSBC Scandal: An $80 Billion Capitalization Shortfall

Forensic Asia on Tuesday began its coverage of Britain’s largest banking group with a ‘sell’ recommendation, warning the lender had between $63.6bn (£38.7bn) and $92.3bn of “questionable assets” on its balance sheet, ranging from loan loss reserves and accrued interest to deferred tax assets, defined benefit pension schemes and opaque Level 3 assets.

http://www.zerohedge.com/news/2014-01-16/latest-hsbc-scandal-80-billion-capitalization-shortfall