banks -its my money

Recently I posted regarding the fact that I had to give notice to withdraw $5000 of "my money" from my local branch - seems I'm not alone. There seems to be an increasing amount of gripes on the internet about this very matter. Remember - off all the "money" that is created in the world only 5% is actually cash - the rest is just computer bits and bytes.

Found this one from another forum

"I recently sold off some assets so that I could pay off a debt. I received a sizeable check from my metals broker and deposited that check into my Citibank checking account. I waited the requisite five days for this out-of-state check to clear and as soon as I saw that it did--via online banking--I rushed out to withdraw the funds in order to purchase money orders (my creditor does not accept personal checks).

Imagine my surprise when Citibank balked at releasing my funds. The teller was very friendly, but I couldn't hide my shock when she picked up the phone to get clearance for the withdrawal. I didn't let myself get too agitated as I began to suspect that getting my money could well rely on the goodwill of this teller. Sure enough, after a few minutes on the phone, she told me that "they" requested that I wait an additional two days before attempting such a large withdrawal...!?

I explained that I'd aleady waited the necessary amount of time and that I had to pay a debt that required cash or money order. I also explained that this was MY money I was requesting and I was beginning to wonder why I let Citibank hold it if they weren't paying interest and still insisted on giving me a hard time about getting it out when I wanted it.

The teller explained to me that since I had just deposited so much and was almost immediately seeking to withdraw so much, it looked suspicious (or something like that). I told her of course there'd been a large deposit--I'd liquidated assets and the deposit was from a broker's out-of-state check. Now I needed those funds as cash. What was so strange about that? The check had cleared and I was now entitled to my money.

She understood my frustration and went to the branch manager. After about fifteen minutes in his office arguing my case for me she came out and got all my cash out of the till. I thanked her for her advocacy, but I also made it clear that I was apalled that I should have had to beg and scrape for my money.

I tell you, this little incident really drove home just how misplaced our collective trust in banks is. We hard money types are always reminding each other via articles and posts about how banks can change the rules or shut their doors during a crisis. Well, yesterday I got a real taste of how hard it can be to withdraw your own money from one of these institutions.

My broker--the inestimable Mr. Stott--has often related that he has NEVER had a savings account and even now keeps only as much FRNs in a checking account as he needs to cover his ongoing expenses. I've started to do the same thing, but I wonder what choice I have when it comes to accepting payments of large sums. Can I insist on money orders?

Money orders, however, are not without their dangers. When I went to the post office to purchase a few thousand dollars worth of M.O.'s I was required to fill out a form for their records because I was purchasing more than $3,000. I was reluctant, but what choice did I have?

A part of me can't wait for this coming monetary collapse. What happened to me yesterday as I tried to use my own money--the grilling by the bank and the monitoring from the feds--is bound to get worse. Haste the day when their legal tender laws and their legal tender won't be worth the paper they're printed on: when the hard currency of the sovereign individual retakes its rightful place in the market. Then we can all tell the Big Brother and the banks where they can stick their paper."

From another poster

Just before the new year I went into my local branch and wanted to exchange some of the $ 100.00 FRN's I had acquired from an auto sale into $ 20's and $10's to add to my emergency situations cache.
I was told that the amount I wanted to exchange was not available for one person ( branch policy ) and that they would have to "special order" my request and that I could come back tomorrow if I wanted. Now I am NOT talking about monumental amounts of cash here......+-4000 dollars is all. After talking to them for a few minutes, I was very suprised at how little cash they actually had on hand.
Now I use a bank only for the direct deposit payroll feature and take as much of my cash out of the system every chance I get.
If and when the populace at large decides that they want their money at one time / day / week....out of the banking system, it will be a sight to behold.

I am actually in the construction business,and i have built a number of banks.You would actually be suprised at all the information i learned from the branch manager and the regional managers while building their new branches.The biggest thing i learned was that they never have more than 8% of all deposits on hand as cash in the bank at any given time.They also only have large amounts transfered from the main branch,the morning of the highest payroll day.Believe it or not,There is more money inside the ATM machine outside the bank,than cash deposits inside the bank.If you bother to look the next time you go to your bank,look in the drive through teller section.You will see a Vault type Safe that is actually connected to the drive through night deposite box.Now these vaults are typically 6' tall by 4-5' wide,and have a place to keep the teller cash drawers,all the cash,and all the coin.They are only 4' deep.This should make you realise that the bank does not have hardly any cash.A run on todays banks would only take about 6 hours before the doors were closed if 10% of the depositers pulled their accounts completely.This is also why they have the Bank holiday law.The bankers told me they already have procedures in place for a run on the banks.If a run is detected by manager,deposits are limited to 10% of your available account,and then the doors will be closed until assets are available.This will be done to keep the bank solvent.Also remember that if you have a safe deposite box there,you will not be able to get to it until the bank reopens,if it does......

The old amount under $10,000.00 no longer applies under the new "Know You'r Customer" Laws.The new amount is a withdrawal or deposit of $3000.00 or more in one day or per transaction.They now have a Homeland Security officer at each bank{Actually a bank employee with a new duty} Who's new job is to physically watch all money transfers that take place during banking hours.He/She are required to report these transactions as a requirement by Homeland Security.This also occurs on property purchases and mortgage refinances.
P.S. If the day comes that the market crashes and the banks close their doors.....Just remember the ATM machine still has $20,000.00 to $30,000.00 cash still inside.{I only say this because it may be your money in there that the bank is refusing to give you due to the run on the banks...}

One more thing,While we are on the subject of trying to get your money out of the bank.I had an incedent a while back,where my wife went in to withdraw $1200.00 and the bank could only give her a couple hundred in cash,because it was a friday morning and their transfer had not happened yet.So she called me on the phone and asked me what she should do.One of the things i have learned is that most all banks will issue Bank checks,Travellers checks,or cashiers checks.So she got the balance in travellers checks,which are just as good as FRN's.So if your bank ever tells you they do not have sufficient cash on hand,tell them to give it to you in Travellers checks.