Calis Beach and Fethiye Turkey Discussion Forum
Information and Services in Turkey Section => Banks, Interest, Money Transfers, Insurance => Topic started by: welshbrickie on January 27, 2014, 19:57:33 PM
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Rumours flying like wildfire, that the NHBC bank is close to collapse
HSBC is scrambling to manage a seemingly terminal liquidity crisis (a lack of hard cash) that could see the bank become the next Northern Rock – and trigger a bank crash. The analyst’s advice is for shareholders to sell HSBC investments, and customers to move their accounts elsewhere before the crash.
This from the Telegraph:
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.
According a report by the BBC’s MoneyBox Programme, HSBC customers have gone to withdraw cash from their accounts, only to find HSBC would not release the funds. Customers were told to make a bank transfer instead, unless they provided documentation proving the intended use of the money. Stephen Cotton attempted a withdrawal and told the programme:
“When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for. They wanted a letter from the person involved.”
Mr Cotton says the staff refused to tell him how much he could have: “So I wrote out a few slips. I said, ‘Can I have £5,000?’ They said no. I said, ‘Can I have £4,000?’ They said no. And then I wrote one out for £3,000 and they said, ‘OK, we’ll give you that.’ “
He asked if he could return later that day to withdraw another £3,000, but he was told he could not do the same thing twice in one day.
As this was not a change to the Terms and Conditions of your bank account we had no need to pre-notify customers of the change”
He wrote to complain to HSBC about the new rules and also that he had not been informed of any change.
The bank said it did not have to tell him. “As this was not a change to the Terms and Conditions of your bank account, we had no need to pre-notify customers of the change,” HSBC wrote.
Mr Cotton is not alone, with other customers seeking to withdraw cash amounts over £3,000 facing the same obstacles. While HSBC argue there is comes customer security interest here, the story simply doesn’t add up. Customer identification is required for large withdrawals, not customer intentions – a person’s cash is theirs to withdraw and place wherever they so wish. Instead, HSBC has been found to have a capitalization black hole (gap between actual cash and obligations) of $80bn. The message is simple, get your money out now.
The Gold Rush
The major banks and states appear to be preparing for impending crisis, while pretending to the public that the economic situation is improving.
There is a gold rush underway, with Banks and States frantically buying up as much gold reserve as they can, stoking fears that confidence in currency is at an all-time low. In recent months and weeks, banks like HSBC and JP Morgan, and states such as the US, Germany and China have joined the gold rush, making vast purchases of stocks.
Investment analysts at Seeking Alpha have been monitoring the strange activity on the COMEX, stating:
“keeping track of COMEX inventories is something that is recommended for all serious investors who own physical gold and the gold ETFs (SPDR Gold Shares (GLD), PHYS, and CEF) because any abnormal inventory declines may signify extraordinary events behind the scenes.”
Another Bank Crash? Why?
The crash is in some ways a replay of the last one. The US dollar is a fiat currency (as is the pound sterling, the euro and most other major currencies). This means, it is monopoly money. There is no gold reserve that its values are pegged to. It is simply made up. So how does money get made? A private, for profit central bank prints it and lends it to the government (or other banks) at an interest rate. So the Central Bank prints $100, and gives it to the government on the basis that it returns $101. You may have already spotted the first flaw in this process. The additional $1 can only ever come from the Central Bank. There is never enough money. The second issue is that all money is debt.
This used to be the way pretty much all of the money in circulation came to be. That is, until Investment and Retail Banks got tired of this monopoly on debt based currency, and kicked off the commercial money supply. You might assume that when you take out a loan or other form of credit, a bank gives you that money from its reserves, and you then pay back that loan to the Bank at a given interest rate – the Bank making its profit on the interest rate. You would be wrong. The Bank simply creates that loan on a computer screen. Let’s say you are granted a loan for $100,000. The moment that loan is approved and $100k is entered on the computer – that promise from you to the bank creates $100k for the bank, in that instant. This ledger entry alone creates the $100k, from nothing. Today, over 97% of all money that exists, is made this way.
This is what drove the dodgy lending practises that created the last crisis. But since then, the failure to regulate the markets means that while bailouts hit public services and the real economy – banks were free to continue the same behaviour, bringing the next crash.
The world’s second richest man, Warren Buffet warned us in 2003 that the derivatives market was ‘devised by madmen’ and a ‘weapon of mass destruction’ and we have only seen the first blast in this debt apocalypse.
The news that should have us all worried is: the derivatives market contains $700trn of these debts yet to implode.
Global GDP stands at $69.4trn a year. This means that (primarily) Wall Street and the City of London have run up phantom paper debts of more than ten times of the annual earnings of the entire planet.
Not only can the Bankers not pay it back, the combined earning power of the earth could not pay it back in less than ten years if every last cent of our productive power went solely to pay off this debt.
This is why answering the issues with our currencies, our banking practices and economic system are not theoretical or academic – they are a matter of our very survival.
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What's going to happen to the 10 year guarantee on new houses :o
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Yeah, and what're the National House Building Council gonna do with all that money ?
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What they've always done and refuse to pay any back.
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NHBC or HSBC ??
Can someone explain the difference?:
In plain English??
Please??
TC :o :o
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HSBC = Hong Kong & Shanghai Banking Corporation
NHBC = National House Building Council
One's a bank, and one isn't :)
I think valleyboy got a bit confused with the title.
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Yes, that is not all he is confused about!!!!!!!
How some people still believe stuff from Rumour Control eh??
TC :o :o :o :o
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I bet anyone with money invested in NHBC will be brickin' it by now. ;)
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It's a rumour without foundation
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Nope. There's no concrete evidence to back it up.
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Theres mortar it than meets the eye, an' that's on the level.
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It was certainly worth pointing out the error :)
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I can't believe there is a ceiling on amounts you can withdraw.
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Let's hope they don't fill in the hole in the wall.
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http://www.pinoymoneytalk.com/hsbc-bankrupt-bank-crash/
Seems to be a rumour based on a rule change some months back.
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Seems to me that this is right up Mr Arris's Street, but then again, I could be vertically challenged. ;) ;)
TC
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Two things.
One, banks create money that does not exist at the press of a button every time they make a loan for anything whether it be for a car or mortgage etc. it is not drawn or based on any actual reserves of money that actually exists. I recommend finding the web site and Facebook page of Positive Money for more information if you want to understand better yourself of how this works and what this means and quite recently there has been quite a lot of media coverage in papers like the Guardian about this too.
Two, once you deposit your money in a bank then believe it or not then it is not yours as such anymore. I think you may find something online relating to RBS that says something to this effect. I have no doubt that banks will limit your ability to withdraw your own cash if they think it will affect them adversely. If I was at home I would find links to support all of the above.
It's what lead to the economic crisis five years ago coupled with the bad mortgages debts that in some cases have proved too complicated for even the banks to unravel and billions still unaccounted for in the States.
The situation as Welshbrickie post outlines has still not been resolved because of the failures of governments to reregulate the financial institutions and I wouldn't be at all surprised if there isn't another more serious crisis looming.
PS what has Valleyboy got to do with this I couldn't see a post by him and is NHBC a typo?
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PS what has Valleyboy got to do with this I couldn't see a post by him and is NHBC a typo?
Oops my fault, I meant welshbrickie - got the whole Wales/valleys confusion thing :)
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I thought that was probably it :)
Also managed to read the link posted by KKOB in the other topic on this and see it is HSBC - might be worth changing to topic heading as its a bit confusing.
I think the whole article is worth reading especially from the middle onwards
http://iacknowledge.net/hsbc-bank-on-verge-of-collapse-second-major-banking-crash-imminent/
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A spokesman from HSBC said: ‘We may ask about the purpose of a cash withdrawal when the transaction is large, unusual and out of keeping with the normal running of a customer’s account.
‘In these instances we may also ask the customer to show us evidence of what the cash is required for. The reason for this is twofold, as a responsible bank we have an obligation to our customers to protect them, and to minimise the opportunity for financial crime.
‘Transactions involving large sums of cash have inherent security issues and leave customers with very little protection should things go wrong.
‘So it’s only correct that, when appropriate, we ask customers the right questions and explore whether an alternative payment method might be safer and more convenient for them.
‘There is no restriction on the amount a customer can to withdraw from their accounts electronically, via cheque or banker's draft.’
Read more: http://www.thisismoney.co.uk/money/experts/article-2540445/What-maximum-money-I-withdraw-HSBC.html#ixzz2rgHNN1VI
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