(Dinar Recaps Note: This post is for informational purposes only. It is not legal, tax or investment advice. Dinar Recaps advises that everyone should do their own due diligence and seek local Professional tax, legal and/or investment advisers.)
Beldinar: The Bankers side
Please give me the opportunity to address some of your questions concerning banking. Trust me banking is one of the "most" heavily regulated institutions in this country. They can't cheat anyone or charge any outlandish fees.
Being a former 10 year Commissioned Bank Examiner and now a 10 year asset review banker, I do have the facts straight.
Banks can't charge fees that are not in compliance with every day bank policy and Federal/State regulations. If they get caught charging fees that they would NOT normally charge, They will get "shut down" by regulators.
They won't do that. Also most banks are examined annually from top to bottom. I am not aware of any such ruling that allows banks to require a depositor to pay extreme fees or require a lengthily hold on your money.
Now that being said, Per Bank Secrecy Act, they (banks& Govt.) "CAN" require at most 3 days hold on your money.
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This is so your Govt. can have a chance to trace proceeds and make sure it is not money laundering or money being used for terrorist activities. I agree with this and feel it is important to be above board with big money transactions.
As far as your money when it officially hits your bank account, interest rates are determined by a banks' Board of Directors and management and the going rate across the country.
Due to the low loan demand in the US, most banksdon't need your money to fund loans. (banking 101- deposits are used to make loans. EX: They pay you 1% for your deposits and they lend at 4%. The difference is banking profit. That keeps the doors open and pays salaries.
Banks "Do" at day end transfer their money OVERNIGHT to the Federal Reserve Bank (FED FUNDS) in order to make some overnight money and get it back with interest in the morning. The Govt. use these funds overnight around the world while we sleep. This is still Banking 101.
Banks can only do this because they are Fed. Bank Members. The fact that they have all your money and are using it overnight to make money is business only they can do . Bad Bankers are EASY to catch.
The only restriction a bank can put on your money is paying your taxes owed to your Govt. They can not make limitations on how long your money has to be there ( with the exception to the 3 days).
They can not charge for anything but a handling fee. Most banks will give you a fee schedule if you ask them for one at the time of visit. This should be in the exchange dept. as well.
Most bankers that I have exposed is through loans that were fraud and Embezzelment. It is rather easy to catch and expose them through audits done routinely.
Spread fees are mostly used in trades. Tony is right, move your money and make it work for you. There are lots of trusts to invest in, there is real estate, municipal bonds, CDRS. Find what works for you.
carpetman1 wrote: The fact that the banks are heavily regulated and on the up and up is obvious given the fact that they were shut down and heavily sanctioned a couple months ago when they were cashing out the elite and leaving us out in the cold. Do I have that about right Beldinar ??
Beldinar: Banks that were shut down got caught, didn't they? Depending on the Bank in question's rating , the audits can be done quarterly if necessary. There are always some idiot trying to beat the system or power hungry uppercrust guy that thinks they are too large a personality to get caught. They always do and take others with them.
Carpetman1: I was being facetious Beldinar. I don't know of any banks that were shut down or sanctioned for cashing out the elite and stiffing us. At least until "We Are The People" started making a fuss ! Please correct me if I'm wrong here.
Beldinar: I don't have ALL the answers BUT my take is this, I am sure there were stings going on before we really pushed the envelope to bankers getting caught with their hands in the cookie jar and more.
Where there is one illegal activity there are more involved and most folks would follow the trail until they get them all. I am sure all those bankers that are missing, died or otherwise not there in the business all had something bad happen because they were involved in something crooked.
We have been reading about all the deaths in various states surrounding this investment. We still do not see any proof yet of bankers paying out the elite. I guess we are not privileged to the information yet. WE are only going on others words and that's ok. WE have yet to RV to prove the point.
I can't prove or disprove the point either. BTW, The Banker is not me but a family member who is in the business and is trying to keep me from any panic attack. Yes, he is also invested and quite knowledgeable in most of this.
It is common knowledge of banks rating being declined and being taken over by another all the time. Ever wonder why? They do a complete overhaul of all banking activities, cut the bad and replace what works. Get rid of the upper management and replace them for numerous reasons.
Clara: Thank you, Beldinar. I am curious how huge banking organizations like JP Morgan Chase can end up with so much fraudulent activity if the current regulations and reviews are working as well as they should.
I work indirectly with banks on the mortgage loan side, and am appalled at what they are doing to the average home loan consumer, yet fraudulent activities are still happening.
Perhaps I'm somewhat naïve, but with all the Frank Dodd regulations for those associated with mortgages, I am dumbfounded how they manage to get these schemes through. From the loan origination, to appraisers, brokers, etc., it would seem as if they have an entire team either fooled or supportive of these transactions.
I'm wondering what your take is on this matter. Frank Dodd was supposed to be a "protective" action for many, but has also proved to be a nightmare as well.
Beldinar: Most of the banks you are referring to were finally caught giving loans to those who really couldn't afford the real estate or home mortgages they applied for. Instead of it being the mean banker that gave you that loan....the consumer must assume responsibility to know what you can afford and what you can not afford.
The Frank Dodd is over 500 pages long and fell of details that make it bad for everyone in my opinion. I look at it like many do ObamaCare. Its not really going to work in the long run. It was put out for the protection of the consumer against the banking deals.
They must give you the same deal as they gave the next guy. My take is the next guy doesn't have the financing stability to purchase that house and defaults and the bank takes the house back.
Its not the banks fault that you had to default on payments on the house. Now it has gotten to the place that the bankers won't stick their necks out to give any loans because the instability of those able to make the note and those others who just want a shot at it. Both are then denied.
There is fraud and illegal activity all around you and not just the banking industry.
There is a prestigious Law firm in NY that is being shut completely down because of that factor of wrong doings to their clients, we have the same in the Health Care system, our own Govt. , How many Wall Street folks have gone down for insider trading and other crimes.
You must look at the entire picture of what is going on around you in the world.
Herewego: Beldinar, which banks do you think are the best?
Beldinar: I do not have a preference. Get all fee schedules and see which one fits your needs. I plan on moving my money after RV and Cashin and making it work for me.