HSBC Bank Customers are being told they will have to prove why they need their own money before being allowed to withdrawal it from their accounts.
Over the weekend, people who bank at HSBC in England were shocked to learn the bank had implemented a new policy blocking customers from making “large” withdrawals without evidence explaining why they needed the money. The news angered customers, and ignited fears and rumors of a bank run.
HSBC admitted they had not informed customers of the new rules, but insist they implemented the changes to protect their customers from financial fraud. But facing an uproar from clients who were unable to withdrawal money over the weekend, because they couldn’t give a satisfactory explanation of what the money was for, the bank says it’s reexamining the policy.
How Safe in your Money?
We’ve examined the risk associated with the banking systems many times in the past. From the cyber-attack that temporarily wiped out accounts at Chase last year, to the European union confiscating bank accounts in Cyprus, to the recent debit card breach at Target, the security of our banking system is anything but secure.
I’ve said it many times in the past, and I’ll say it again; you cannot count on always being able to get access to your banking account. That may sound odd, especially when it’s such a common part of our everyday lives; but the fact is, even a small-scale disaster, like a storm that knocks out the local power grid, can temporarily disrupt your ability to use your bank account. A large-scale financial collapse would be even more devastating, quickly causing banks to limit withdrawals and perhaps even igniting a run on the banks.
Are You Prepared for Financial Disasters?
What’s happening with HSBC should be a wake-up call for everyone. If a bank can tell their customers when and how much of their own money they can use, you really have to ask yourself: is the money in your bank account really yours?
After the financial crisis of 2008, where our country came damn near close to an economic collapse of the entire system, the security of the banking system has become a huge concern. Billions upon billions of dollars were thrown into a system that to this day still faces the same problems that lead to the crisis in 2008. Not one thing has changed; in fact, I would argue we are in much worse shape.
Since 2008 the government has piled on trillions of dollars in debt, we’ve had continuous skyrocketing unemployment, and the feds been printing money like there’s no tomorrow. At some point it’s going to come back to bite us in the ass.
If you haven’t started preparing for an economic collapse, what are you waiting for? In my opinion it’s one of the most likely and predictable disasters we’ll face. It doesn’t take a Wall Street economist to realize we’re in for some major trouble ahead.