Swiss Bank Refuses Large Cash Withdrawal

Discussion in 'Wall St. News' started by dealmaker, Jul 25, 2016.

  1. dealmaker

    dealmaker

    Swiss Bank Refuses Large Cash Withdrawal

    Posted byDaniel Brown//April 29, 2015//Investment,Money & Finance.

    [​IMG]Swiss Bank Baulks
    Swiss banks used to be world-renowned. The nation has had a reputation for banking secrecy and international neutrality, making it a relatively safe place to store wealth. Unfortunately, the costs of Swiss banking might soon outweigh those benefits. As negative interest rates continue to permeate the Swiss economy, at leastone bank has declined a customer’s request for a large cash withdrawal. This probably occurred at the direction of the Swiss National Bank (SNB).

    Thenegative interest rates took effectat the central bank in January 2015 amidst a failing Russian economy and crashing oil prices. Private lenders have been forced to follow suit. Instead of paying interest on deposits, some nowchargecustomers for the use of their money. This has been a huge blow to the fiscally responsible Swiss. Those with retirement funds and similar investments are nowlosingmoney by keeping it in the bank.

    Further problems arose when one pension fund manager tried to avoid those losses. He wanted to withdraw his fund’s money from the bank and move it to a separate storage facility. That would save his clients 25,000 Swiss francs per year for every 10 million francs in the fund. Storing cash in an insured vault would still cost money, but it would be far cheaper than keeping it in the bank.

    http://news.anthemvault.com/swiss-bank-refuses-large-cash-withdrawal/
     
  2. Metamega

    Metamega

  3. dealmaker

    dealmaker

    or another name for indirect taxation....
     
  4. Metamega

    Metamega

    Yes that's actually the description he gave it at as well.

    I literally have no idea how you get out of this low interest/negative interest. I've tried telling some of my co workers that have bought houses that they should sit down and play with a mortgage calculator and see what happens if their interest rates went up to levels prior to Great Recession.

    Their complaining about not being able to afford vacation due to their new mortgage payments and they have no idea that these terms were getting in Canada( 2.7-2.9 percent on a 5 year term) are not going to be around for ever.

    Guess we just wait and watch how it all plays out.
     
  5. Oh, good lord, not more of this ZH news...
     
    nbbo likes this.
  6. Sig

    Sig

    Seriously people, you're quoting "news" from anthemvault.com, a private company engaged in that offers to "Buy, Store, Sell, and Gift Metals"? A company whose interests are directly aligned with making you doubt banks, and what do you know but they come up with a story that would cause you to doubt banks! And this "news" doesn't name any names, no sources, no nothing. I'm pretty sure this story actually originated at ZeroHedge which is about as unreliable a source as they come. Until you can name the "one pension fund manager" and someone who verified that there wasn't more to the story, most likely an AML trigger, it's complete and utter BS.
     
    nbbo, JackRab and J.P. like this.
  7. JackRab

    JackRab

    My thoughts exactly! Why would you look at 'news' from any source that markets their biased products on the same website? If you take the news from any gold fund or gold/metal investor site, it will always be more bearish and they will always suggest moving to gold...
    Same with ZH, they are so biased... I sometimes like to read their stuff, but if you can't read through the BS you get a very skewed vision of the financial world...
     
  8. In general, this is all not surprising and I dunno what all the excitement is about... Obviously, physical cash is a problem in a world of heavily negative rates. CBs will try to discourage the use of cash as much as they can (not that they really need to make a great effort, given how impractical it is). This isn't new news, but when has anything like that held ZH back.

    See this for instance:
    http://www.reuters.com/article/us-commerzbank-ecb-idUSKCN0YU1HW
     
    dealmaker likes this.
  9. zdreg

    zdreg

    the real underlying issue is capital controls by desperate governments. governments would like to eliminate all cash transactions.
     
  10. marsman

    marsman

    Last edited: Jul 26, 2016
    #10     Jul 26, 2016