pull down to refresh
639 sats \ 13 replies \ @siggy47 OP 1 Mar \ parent \ on: NYCB- Nothing To See Here Again econ
I agree, but I have a confession. I'm involved with one of these shaky regional banks (not NYCB) regarding loans on two retail buildings. The loans closed right before last year's crisis. I have never dealt with a more difficult situation. The bank is driving us crazy with insurance, audits, rent roll updates, even though we're current, the LTV is conservative, and we've never been late on a payment. I would sort of welcome a well funded, close to the spigot Cantillon bank right now, even though it goes against everything I believe in.
reply
I was dealing with a shaky regional bank as well...they closed my account because I deposited 23k in cash. The money was from a customer payment and I brought the referenced invoice to the bank when depositing the money.
The actual deposit went fine, but I got a call from bank manager 3 weeks later saying that I was "high risk" and corporate was closing the account. The manager was actually very apologetic and sympathetic to my situation. He basically threw corporate under the bus and said there were so many forms to fill out for high cash transactions that it was no longer worth the risk (having a bank tell you its too risky for you to hand them money is peak clown world).
Its an impossible situation: What was I to do? If you try to deposit under the 10k reporting threshold then the feds charge you with "structuring" (ie. a made-up name and made-up crime). If you deposit the full amount, the bank closes your account because they themselves now need to answer too many questions to feds regarding "large currency deposits".
Of course the real hilarity is that back when the $10K "high cash limit" was set, was early 80s....so probably $75K in todays money?
The client in question was a retail store that we installed POS system into....like 1 server + 2 client PCs + some cabling + software license fees.
The point of my saga is that yes, the regional banks are being squeezed out of existence but I don't have too much sympathy frankly.....
reply
Thanks for posting. You raise two great points:
-
The structuring bullshit. I dealt with this as a criminal defense lawyer. Classic catch 22. The government has you either way if they want you. My clients had no good options but the mattress.
-
The 10k limit. The law exists as if 45 years of currency debasement never happened.
reply
reply
10k
Yeah, like when they passed Income Tax in 1913. They got it thru because the bracket started at $20K - which would be something like $600K today.
They've essentially never really adjusted the brackets all that much but allowed inflation to do their dirty work.
reply
Bank secrecy act, 1970
reply
Money laundering laws are fairly recent, I think 1983 or 84
My guess is based on the debut date of Scarface and Miami Vice
reply
So basically this is crushing small business owners
reply
Yep. That's the plan.
reply
Hopefully you and the bank can survive.
Even though I don’t like the soul sucking, to big to fail, Nickel and dime the working class while raking in billions in profit banks.
I know some banks out there that try to run an honest business and help their communities. It sounds like maybe this bank is one of those.
reply