Monthly Archives: October 2013

Switzerland will release bank account numbers to foreign financial police

"Switzerland will cooperate more closely on fighting money laundering, the Swiss body responsible said on Wednesday, marking a further loosening of bank secrecy a day after the country signed an accord to fight tax evasion. In legislation that will come into force on November 1, the Bern-based Money Laundering Reporting Office (MROS) said that Swiss authorities will be able to release the numbers of bank accounts opened in the country to foreign investigators. A day earlier, Switzerland, widely considered a tax haven and long criticized for its secretive banking culture, signed an international agreement to exchange information among more than 60 countries aimed at exposing tax dodgers." Continue reading →

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Buried in Fine Print: $57B of FHA Loans Big Banks May Have to Eat

"The nation's four largest banks are holding $57 billion of seriously delinquent loans that they've been slow to move into foreclosure over concerns that the Federal Housing Administration, the government mortgage insurer, will refuse to cover the losses and hit them with damages, according to industry sources. The banks — Bank of America (BAC), Citigroup (NYSE:C), JPMorgan Chase (JPM), and Wells Fargo (WFC) — have assured investors in the footnotes of quarterly filings that the loans are government-insured and therefore pose no threat to their bottom lines, even if they end up in foreclosure." Continue reading →

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We All Know Who Janet Yellen Is, And That’s Terrifying

"The acclaim in the media sends a shiver down the spine. Janet Yellen, just nominated by President Obama as the next head of his Federal Reserve, will be 'the most powerful woman in the planet'. If we were living in a stable monetary order she would be the least powerful woman in the world. Think back to the era of the gold standard before 1914. Britain was the leader of the orchestra in the monetary system. But no one outside a few discount brokers in London knew the name of the Bank of England Governor, who changed each 2 years." Continue reading →

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Janet Yellen: An Insane Choice for a Debt-Crazed Economy

"I have no idea if she is competent. Competence in an economist is hard to measure, like knowing whether your auto mechanic is really any good. As for vital attributes, the Times did get one right. 'She represents continuity,' the Times wrote. That pretty much says it all. Janet Yellen is establishment all the way. She won’t wobble the canoe. She’s not a Paul Volcker coming in to break things up. And that’s all you need to know about Yellen. She’s got the same playbook in her pocket as Bernanke. If anything, there are hints she’ll be even more aggressive in printing money than Bernanke." Continue reading →

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HSBC USA Joins Chase in Limiting International Money Transfers

"Yesterday, I reported that JPMorganChase will start to limit cash withdrawals and ban certain business customers from sending international wire transfers, from November 17 onward. Now, word comes via Simon Black that starting October 20th, HSBC USA's Premier clients will have to wait a minimum of five days before transferring funds to their OWN international accounts! This is not good. The cover story for these measures is to 'protect' banks and customers from theft. In reality, this is a major move toward limiting movement of capital overseas." Continue reading →

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Creeping Capital Controls At JPMorgan Chase?

"For whatever reason, JPM has decided that after November 17, 2013, it will halt the use of international wire transfers (saying it would "cancel any international wire transfers, including recurring ones"), but more importantly, limits the cash activity in associated business accounts to only $50,000 per statement cycle. "Cash activity is the combined total of cash deposits made at branches, night drops and ATMs and cash withdrawals made at branches and ATMs." Why? "These changes will help us more effectively manage the risks involved with these types of transactions." So... JPM is now engaged in the risk-management of ATM withdrawals?" Continue reading →

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Chase Bank Limits Cash Withdrawals, Bans International Wire Transfers

"Numerous business customers with Chase BusinessSelect Checking and Chase BusinessClassic accounts have received letters over the past week informing them that cash activity (both deposits and withdrawals) will be limited to a $50,000 total per statement cycle from November 17 onwards. The move to limit deposits and withdrawals while banning international wire transfers altogether is a bizarre policy and will cripple many small and medium-sized businesses with Chase accounts. Buying stock from abroad in any kind of quantity will now become impossible for many companies, while paying employees will also be a headache." Continue reading →

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Overtaxed and over there

"'FATCA is strangling us economically,' says Genevieve Besser, an American who has lived in Germany for 25 years. Last year her youngest daughter, a dual citizen, had her local brokerage account closed by Deutsche Bank because her mother had signing authority over it. Americans are even being forced out of products that are not subject to FATCA reporting: some have been forced to pay off mortgage balances with Swiss banks, for instance. American banks and brokerages are growing frostier too. Some are closing the accounts of citizens who no longer have an American address because of FATCA." Continue reading →

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State, provincial regulators raise red flags on virtual currency

"Consumers may be headed for trouble when they turn over bank and brokerage pass codes to investment advisers or get pulled into investment scams involving digital currencies, state securities regulators said. The North American Securities Administrators Association said digital currencies, such as Bitcoin, offer consumers another way of paying for goods and services, but they also provide a 'fertile ground for scam artists to capitalize on ... (their) increasing popularity and acceptance.' The association's members include state and provincial regulators in the United States, Canada and Mexico." Continue reading →

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