The Phaserl


WAR ON CASH: Banks to Start Charging for Cash Deposits

by J. D. Heyes, Natural News:

Few could have envisioned it even just a few years ago, but it’s happening now, and on an ever-widening scale. More big U.S. banks are shunning cash, because the banking system has become so dependent on other “assets” that large cash deposits actually pose a threat to their financial health, according to The Wall Street Journal.

State Street Corporation, a Boston-based institution that manages assets for institutional investors, has, for the first time, begun charging some customers for making large cash deposits, according to people familiar with the development.

And the largest U.S. bank in terms of assets — JP Morgan Chase & Co. — has dramatically cut “unwanted” deposits to the tune of $150 billion this year alone, in part by charging customers fees.

What gives? What kind of world do we live in when banks no longer want cash?

As the WSJ reported:

“The developments underscore a deepening conflict over cash. Many businesses have large sums on hand and opportunities to profitably invest it appear scarce. But banks don’t want certain kinds of cash either, judging it costly to keep, and some are imposing fees after jawboning customers to move it.”

As usual, the problem originated largely in Washington, D.C.

Criminalizing cash?

The paper said the banks’ actions are being driven by low interest rates (set by the Fed) that eat into profits, as well as “regulations adopted since the financial crisis to gird banks against funding disruptions,” adding in a separate report that a number of large financial institutions have become more dependent on buying and selling stocks, bonds and commodities like oil.

The latest round of fees for large deposits stems from regulators’ deeming them risky. They are sometimes dubbed hot-money deposits that analysts believe is likely to flee quickly in a crisis (think runs on Greek banks recently, which the government eventually curbed).

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5 comments to WAR ON CASH: Banks to Start Charging for Cash Deposits

  • The Truth

    What gives? What kind of world do we live in when banks no longer want cash?

    Answer: A world where the cash is worthless!

  • Christine

    The thing is… A cashless society may force the funneling of phony money toward the top for a little while longer and the entrapment of the fearful into participating in that system. Barter will never cease to exist and barter is impossible for any institutionalized financial system to overcome.

    As long as societies exist, barter will sustain them. Take stock of what you CAN do to contribute (physically, manually, intellectually). Disregard what the system wants to force you to subscribe to “voluntarily” (see the irony there?).

    Barter only requires one thing: honesty.

    • James in NY

      I like the concept of bartering, however it is a flawed system. One side almost always feels at a disadvantage. In other words an uneven trade. Granted both sides got what they needed, but the media of exchange is less than perfect. Most folks know what a loaf of bread is worth in relation to the current social system. It’s hard to argue it.

      In other words if you paid 50.00 for a loaf of bread all the folks you asked would say your nuts. However if you paid 3 cows for 2 donkeys it gets a bit more interesting. The fluctuation in value would vary constantly and someone would always feel they got burned. If not during the exchange, then after once speaking to other people or finding someone whom just traded the same guy 2 cows for 3 donkeys.

  • Christine

    You haven’t lived through barter, have you?

    I have. Many times, in many different settings. It’s very simple:


    – My roof is leaking. I need a roof.
    – I can fix it. How much do you pay for it? (Yep. The one giving the work names the price).
    – 3 rabbits. With the skin on.
    – Nope. Can’t do it for less than 3 female goats.
    – I don’t have 3 goats. How about 1 female goat and 2 rabbits?
    – Nope. Your wife sews? Cousin getting married next week. She needs a dress.

    You get the drift. Face to face. 250,000 years of humanity depended on it. Still works nowadays in many parts of the world. The American way of life fit for 320 million out of the 7+ billion Earth inhabitants is so artificial that bartering here will have to be adapted to expectations.

    Bartering will get humanity through though. It is what Greeks rely on. Until IMF and banks come to their senses. And if they don’t, Greeks will find a way and it won’t include banks. BUT it will include technology. On a bartering scale.

    • chuck

      Regardless of its efficiency or peoples ability to learn and adapt the skills needed to barter, it may well likely be the only honest tool many of us have to acquire the goods we need to survive. Might as well adopt the practice now to what extent one can. It can do no harm and we learn to live outside the system before its demise.

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