US Cash Crisis: Withdrawal Limits Spark Bank Run Fear

US Cash Crisis: Withdrawal Limits Spark Bank Run Fear

There are people complaining on social media about the withdrawal limits from certain banks in the U.S over the last few days. “Go to the bank today and ask to withdraw your entire balance,” one individual tweeted on March 17. “They are refusing to give out more than $5,000 — Even if your account has $20k. Even if your normal withdrawal limit is $10,000 daily.” On March 14, a person from New York tweeted: “Food chain is broken. Went to Stop & Shop [and] shelves are empty. Meats gone. No more eggs — [and] the bank would only permit a $2,500 limit per day withdrawal.” Another Twitter post shows a man visiting Chase bank and recording a video of a manager refusing to give him $5K. Moreover, the branch manager from Chase asked the person to delete the video. The man said:

Chase is insolvent — Bank run. [The bank] proceeded to lie to me to go around outside the drive-thru without my mask and she would give me the $5K promised earlier ($2K rationed per customer). I did so and they refused to give me it — Manager demanded I delete the video.

European Banks Shutter, German Banks Impose Withdrawal Restrictions, and Bank Runs from the Past
The U.S. is not the only country that is having cash problems as European banks have shuttered hundreds of branches since the Covid-19 spread. For example, the financial institution HVB closed 101 branches across the EU. Reports detail that a few German banks are imposing withdrawal limits and customers can only withdraw 1,000 euros per visit. Ever since last Thursday’s stock market crash, people are reminded of the economic disasters in the past like 2008’s Financial Crisis, ‘Black Wednesday’ in 1992, and ‘Black Monday’ in 1987.

Men and women line up in a run on a bank in New York City during the early 1900s. Depictions of bank runs can be seen in classic movies like Frank Capra’s “It’s a Wonderful Life.”
However, those crashes didn’t cause massive bank runs; the last time that happened was during the Wall Street crash in 1929. During the Great Depression throughout the early 1900s, the 20s and 30s, there was a massive run on savings and loan operations and financial institutions across the U.S. The economic crisis sparked by the coronavirus is causing these fears again.

“Bank runs are starting in Colorado,” another man from the U.S. tweeted on March 17. “Smaller towns and small cities are not allowing walk-ins [or] anyone, along with limits on cash withdrawals.”

Sourced through Scoop.it from: news.bitcoin.com

By | 2020-03-19T16:54:30+00:00 March 19th, 2020|Scoop.it|0 Comments

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