An interesting (true) tale about cash in the bank

Discussion in 'Financial Cents' started by melbo, Jun 7, 2007.

  1. melbo

    melbo Hunter Gatherer Administrator Founding Member

    I hypothetically, (See my sig), ran upon a gold deal today. Walked into a local coin dealer in belize and saw 36 1oz gold coins. 2/3 Eagles and the rest Krugs. Now, I've never seen a local cash and carry with this much stock before and seeing that my own wallet was too thin for the purchase called a buddy who's been looking for a little pile of gold.

    After negotiating a fair price, (2% over spot), the interested party told me to go ahead and get it for him. Ok. Cool. Glad you are getting some real wealth bud.... but how do we transfer this amount of cash to make this deal? $24Kish needed to be moved twice and maybe sent to hand cash to the guy or he would need to file special papers.

    Rather than pass it up, (and I was looking at a few ways to buy this hoard myself), the buyer decided to just pull the cash from his bank and drive on over. No problem right? You have $600K on account, you can pull a measly $25K out.... Nope. Major bank in a metropolitan area told him/her that they only had $10K on site today. Wow. He was told that another branch 45 minutes away could scrape together the remainder.

    WTH would happen if we had any sort of a downtick in the economy or the USD and even 5 people went to get some cash? My bet is the the doors would lock while the executives in the branch went down and cashed a few personal checks in the till.

    When a 2 or 3 billion dollar, (On deposit, not just assets) bank is tapped to dispense $25,000, you should worry. Or at least be aware of this.

    If economic SHTF, find a Casino and try to cash a large check there. Have a drink, toss a few hundred into the slots, and walk out with the rest of your cash.

    Maybe some pics tomorrow....[winkthumb]
    twas a nice score.
  2. Bear

    Bear Monkey+++ Founding Member Iron Monkey

    "Cash on Hand" is a tidy way to limit runs on financial institutions.... Even though its a "demand account"... read the fine print when you opened the account.... Also note that the financial institution will need to file a report on anything suspicious, out of the ordinary or over 10k.... There's lots of paper out there... just not enough to cover the "electronic" wealth that so many are relying on....[winkthumb]

    got PMs????....[winkthumb]
  3. TnAndy

    TnAndy Senior Member Founding Member

    Actually, Currency Transfer Reports ( CTR ) are generated if you take OUT a lot less than 10k......3-5k at most banks. The 10k is if you are putting IN.

    For the most part, I wouldn't worry TOO much about 'electronic money'....fake as it is, and subject to any number of hazards that could take out a computer, the "real" paper fiat wouldn't be to far behind should the electronic stuff get gone.

    As the disclaimer I'm now seeing on some bills says:

  4. E.L.

    E.L. Moderator of Lead Moderator Emeritus Founding Member

    After all this time looking through my change whenever I get some, I finally found a 1963 nickel. [touchdown]
  5. AlterEgo

    AlterEgo Monkey+++

    I had to make an appointment to withdraw 32k. I also had to do it in the mgr's office.

    He probed with a few questions but got nowhere. Left with one briefcase of cash.

    All the time the wife and I were there he kept saying what a risk we were at for doing this. Always looking to see if I was armed, :sneaky: I was.

  6. emk

    emk Monkey+++

    This really is interesting that this story should come up.. I went yesterday to the institution that I have banked at for years. I went in to cash a check for 5K. I gave it to the teller and she said with very strange eyes that they did not have enuf cash on hand to do it. So the manager comes over who I know quite well and tells me that Loomis screwed up on their delivery to the branch and did not bring the bricks of cash as ordered. They were in a whole heap of trouble. I first thought that they had been robbed. Not so. In the meantime I had to go to another branch to cash the check. Long and short of it the branches it sounds like, can only keep so much on hand.. So if there is a run on cash sounds like you are SOL. The ATM sure as hell is not going to give enough 20's.
  7. poacher

    poacher Monkey+++ Founding Member

    Well I'll jump in on this. I worked at a bank for a about a year running security and also transfering the paper assets back and forth. First off you'd be amazed at how much money is NOT in those neat little armored vans you see running around towns. Now Vegas aside most of those vans carry the coin and only about 20 or 30K in paper. The bank I worked at had a little Toyota pickup or I used my vehicle, but none the less I used one of the two to do paper pickup or transfers. The largest amount that I ever transfered went out in a duffel bag first thing in the morning. The bag held just shy of 175K in cash.
    Now to get on with the info. Each bank is classified by the bank inspectors (yes there really is such a thing) Depending on your ranking you can only have so much ready cash on hand. A bank like Nations bank is usually high enough that they can be considered a clearing house so they can and usually do have anywhere from 3 to ? million on hand. The one here has about 3- 5 million on hand. All the other smaller banks will usually send money to the clearing house where they have an account. my understanding is they make money on the money you deposited to make money on.
    The only account I ever saw was the one that showed how much the bank had put into the clearing house account. It worked pretty much like a acct. that you or I would have. Now the kicker to all this. If you are allowed to only have say 200K in actual cash on hand and the banking inspectors show up and you have 250K you get fined and a black mark is on your record. If you have 180K then same thing. Too many fines/ black marks and the bank will either get knocked back a class or the banking regulators step in and take over the bank to run it.
    I realize that there's somthing more that should be here. I'm just not hitting on it now.
    Take care Be safe Poacher.
  8. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    [lock]the doors. The [sheep]le want their deposits. Time for a bank holiday: hey [sheep]le.........[finger]

  9. BAT1

    BAT1 Cowboys know no fear

    I don't use them. If the next "staged event" happens they'll close their doors and every body would be in soup lines. Not where we want to be. By the way, I'm saving pennies in case I have to melt them down to make ammo.
  10. Quigley_Sharps

    Quigley_Sharps The Badministrator Administrator Founding Member

    keep cash reserves
  11. crehberg

    crehberg Monkey+++

  12. ghrit

    ghrit Bad company Administrator Founding Member

    This scheme just might get a test in a short while. I'm fixing to close an account at a bank that successfully peeved me deeply. If they want to charge me for a cashier's check or electronic transfer, I just might irritate them with a cash request. I hope so, I need an excuse to tell them I'm coming in armed to pick up MY money --:sneaky:
  13. evilgijoe88

    evilgijoe88 Monkey+++

    i had a problem like that after i returned from Afghanistan, where i hadn't been able to spend much in the way of $$$. i wanted to buy a truck, and when i went to pull out the money that told me that i had to wait a week, because they didnt have the amount on hand.after that i no longer associated with Key bank.
  14. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    I have spoken to a couple peope about this story. Their advice:

    If you need to get a bunch of $, go write a check at a casino for whatever amount you want. They are used to giving people $10k, $50K, $100K or more in cash so they can waste it on the tables.

    This is from friends of mine who regularly "casino".

    Oh yeah, be sure you have the $ in your account or they will break your knees
  15. Blackjack

    Blackjack Monkey+++

    Don't forget casino's have to report transactions over 10k to Uncle Sam just like banks do. I used to work at one.
  16. E.L.

    E.L. Moderator of Lead Moderator Emeritus Founding Member

    They must have just had a huge transaction. I have never had any problem cashing out $5-10K.
  17. NVBeav

    NVBeav Monkey+++

    I used to get really mad at one bank and move all my money to another. It was never very much money to make any difference to them, but it sure made me "feel better".

    Over the past 20 years almost every bank I've been at has been bought by another bank. Moving from one bank to another just brings me to another set of rude tellers (that often hop from bank to bank anyway).

    Now days I just stay at one bank and try to build up good acquaintances with a friendly smile... the Golden Rule really helps. Sometimes you can get fees waived or lollipops and stickers for your kids -- nothing big -- they need to keep their business running too.

    As for having enough cash -- plan ahead. It's a fact of life -- it doesn't make it right, but that's the way it works these days. I need to learn to keep more at home/pocket if a national or regional emergency were to arise.
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