Banks Can Legally Steal Customer Funds From Private Checking Accounts - BlackListedNews.com

August 20, 2012

Source: Susanne Posel

In 2007, the Sentinel Management Group (SMG) collapsed, leaving many customer segregated funds lost after they had been used as collateral. After a plethora of lawsuits and creditor claims, a decision earlier this month in the 7th Circuit Court placed the banking cartels ahead of customer claims for funds returned. Essentially, the Bank of New York Mellon (BNYM) sued to be first in line for return on stolen customer account monies – and won the right by the US court system.

In the mainstream media (MSM), the SMG collapse and subsequent ruling in favor of BNYM was touted as a difficulty “for customers to recoup money lost”.

SMG, a Chicago-based futures broker, had stolen more than $500 million in segregated customer funds to use as collateral on a loan to BNYM for in-house proprietary trading operations. Their books were audited by the National Futures Association (NFA), however the NFA admitted that they could not understand the convoluted mess they were provided by SMG to sign off on. And yet they did; and approved the audit.

BNYM sued SMG to re-coup any monies owed to them. However, these monies were customer segregated funds that SMG stole and re-hypothecated.

In federal court, John D. Tinder, US Circuit Court Judge ruled “that Sentinel failed to keep client funds properly segregated is not, on its own, sufficient to rule as a matter of law that Sentinel acted ‘with actual intent to hinder, delay, or defraud’ its customers.”

This means that once a banking customer deposits their money into an account with a bank, the funds become property of the bank. The customer, at the point of deposit, relinquishes all rights to that money regardless of any laws in place, legal assurances, claims or guarantees; and this extends from investments to private checking accounts.

Once the bank has physical possession of your money, they own it and can use it for any means they deem fit. The veil has been lifted on separation of customer and bank funds. They are now legally co-mingled.
The bank could use it as collateral (as SMG did), to pay off debts, or place it on the stock market to bump up their trading with extra cash. And in the event that the customer allocated funds are lost, the bank does not owe the customer the money back.
Essentially, once you deposit money in your bank account it is gone.
Fred Grede, SMG trustee remarked: “I don’t think that’s what the Commodity Futures Trading Commission had in mind. It does not bode well for the protection of customer funds.”

The MF Global (MFG) scandal rocked the investment world because Jon Corzine, chief executive officer of MF Global, instructed the transfer of $200 million from their customer segregated funds to cover the corporation’s overdraft account with JP Morgan Chase.
Corzine emailed this order just three days before the official collapse of MFG. At the same time Corzine was moving customer money, this missing $6.3 billion dollars were used on bets on European indebted nations. As those European nation’s credit ratings plummeted, JP Morgan profited financially.
Our financial institutions have been planning for a financial collapse wherein the US government will not offer assistance. The resolution plans required by the Federal Reserve Bank, described schemes to have the major domestic banks remain afloat by selling off assets, finding alternative sources of funding, reducing risky measures that make a quick buck. These strategies were to be perfected with “no assumption of extraordinary support from the public sector.”

By selling “non-core assets” without upsetting shareholders while protecting the monetary system, taxpayers and creditors is the work of the mega-banks who have contributed solely to the destruction of the global financial markets. Bank of America (BoA) and Citibank have already begun to liquidate some of their assets – an action a bank takes when they are insolvent.
Both mega-banks and credit unions have been silently altering their deposit/withdrawal policies to deter customers from emptying out their accounts.
Because the digital record of monies is greater than the physical cash held by banks, this is a scheme to stave off a “run on the banks”.

With the Patriot Act , signed in 2001 by former President George W. Bush, and extended in 2011 by President Obama states that all banks must record all banking transactions with photo ID and fingerprints that will then be sent to an FBI database wherein all banking information tied to each individual on file can be traced for future reference.

Of recent, when withdrawing cash from an ATM, the daily allotted amount has decreased with some banks, thereby forcing the customer to go into the branch and extract the difference with a teller. At this point, according to anonymous informants, the customer is taken into a backroom to be questioned as to why they want the cash, what they are purchasing with the cash, why they are not choosing to use a debit card or another form of digital trade to make the purchase. These questions are not only intrusive, they are illegal.

Some anonymous sources have said that banking representatives who conduct the integrations are directed to keep a record of customer responses on an online application that will be sent to the FBI in conjunction with Patriot Act mandates on tracking banking activity.
While American citizens sit on the fence about whether or not they even subscribe to a banking collapse in the US, globalists like George Soros are investing heavily in gold.

Soros recently “unloaded over one million shares of stock in financial companies and banks that include Citigroup (420,000 shares), JP Morgan (701,400 shares) and Goldman Sachs (120,000 shares). The total value of the stock sales amounts to nearly $50 million” and then purchased 884,000 shares of Gold with SPDR Gold Trust.

The mega-banks, through Wall Street, are also acquiring firearms, ammunition and control over private mercenary corporations like DynCorp and ‘Blackwater” as authorized by the Department of Defense (DoD) directive 3025.18 .

DynCorp is a military-based private mercenary contractor that provides (among other services) intelligence training and support, international security, contingency plans and operations. Ninety-six percent of their funding is based on annual revenues from the US federal government. The international branch of DynCorp has operated as a “police force” even assisting local law enforcement during Hurricane Katrina.

Named as investors for the amassing of gun and ammunition manufacturers are Citibank, BoA, Barclays and Deutsche Bank who are pouring money into Cerebus and Veritas Equity who have taken over private corporations involved in the controlling riot situations.

The Federal Reserve Bank, one of the heads of banking cartels, has their own police force which operates as a protective security for the Fed against the American public. As part of the Federal Reserve Act signed in 1913, the designation of a Federal Law Enforcement – special police officers that are exclusively regulated by authority of the Fed (whether in uniform or plain clothes. These specialized police officers (who train with Special Response Teams) can work in tandem with local law enforcement or US federal agencies. These officers are heavily armed with semi-automatic pistols, sub machine guns and assault rifles as well as body armor.

Just this month, the Kaspersky Lab discovered Gauss, a banking surveillance virus believed to have the capability of stealing money out of customer’s bank accounts, as well as spying on banking transactions, stealing login information for social networks, email and instant messaging. So far, Middle Eastern banks have reported having been affected by Gauss – however both Citibank and Ebay’s Paypal have also been infected by this new viral threat to our banking systems.

It is clear that the financial collapse could be eminent. Banks are not only preparing with contingency plans, but also amassing a private police force for protection. With the legalization of stealing from customer secured funds, combined with a possible banking virus that could provide the perfect cover for an all-in-one banking holiday, the stage is being set for utter financial destination.

Once all customer funds were electronically transferred into off-shore accounts, the specialized police forces and hired mercenaries would be allocated forward to protect the technocrats from retaliation for their crimes.

The banking holiday will not come with flashing neon signs. Our warnings are right in front of us, if we choose to see them.

How to fight back against new bank fees

Watch for new bank fees

You can fight back against being nickeled-and-dimed

Last reviewed: November 2011

Banks are looking for new sources of revenue now that federal regulations have reined in the amount they can earn from credit cards, overdrafts, and debit-card merchant fees. So the next time you get a letter or an e-mail message from your bank, don't be surprised if it brings news of higher fees, fewer rewards, or tougher account requirements. But you might be able to avoid paying more if you're vigilant, willing to change your habits, and ready to switch banks for a better deal.

The latest blow to bank profits, effective last month, is a federal rule that limits the so-called "interchange" fees large banks can charge retailers whenever people swipe their debit cards to pay for a purchase. The fees are now capped at 21 cents to 24 cents per transaction, about half the average amount banks had been charging. This change follows separate regulations that took effect in 2010, limiting the ability of credit-card issuers to raise interest rates on cardholders' balances and barring banks from charging overdraft fees in connection with ATM and debit-card transactions unless customers opt for overdraft protection.

Because of the new restrictions and a continuing weak economy, banks have lost billions of dollars in revenue—and they're taking steps to recoup some of that through new fees or reduced rewards for account holders. "We are taking a hard look at the fees and benefits of all our payment products, including debit cards," said Tara Burke, a Bank of America spokeswoman.

More fees, fewer rewards

Even before the interchange-fee caps went into effect, JPMorgan Chase, USAA Bank, and U.S. Bank announced they would stop offering debit-card rewards for new or existing customers. And some banks are imposing more stringent requirements to avoid fees on checking accounts. A 2010 study by Bankrate.com found that 65 percent of the checking accounts offered by the largest banks imposed no maintenance fees, down from 76 percent in 2009. At many banks, fees are waived if customers maintain a minimum balance or set up direct deposit with their employers. Recent changes in free-checking requirements by Bank of America, Chase, Citibank, and Wells Fargo could result in more fees for those who are least able to meet the stricter requirements.

Consumers should also watch out for new charges. We've already seen new fees for:

Debit-card use

Beginning Oct. 14, Wells Fargo began a test program that charges a $3 fee during any month in which customers in Georgia, Nevada, New Mexico, Oregon, and Washington use their debit cards.

Paper statements

Want to get your checking statement mailed to you? If you bank at TD Bank, you'll pay $1 a month for the privilege. Bank of America e-banking customers will pay $8.95 for any month they request a paper statement.

Seeing a teller

Bank of America e-banking customers also face an $8.95 charge during any month in which they make a deposit or withdrawal with a teller. PNC charges some customers $2 to $3 when they call a service representative to transfer money rather than doing so online.

Replacing lost plastic

Bank of America now charges some customers $5 if they lose their debit card. For overnight replacement, once provided at no additional cost, Bank of America now charges $20.

Closing your account

Chase charges $25 for closing an account within 90 days of opening it. U.S. Bank and PNC charge $25 if an account is closed within 180 days of the date it was opened.

What to do

First, it's important to stay on top of your bank's fee practices so it can't sneak new charges by you. Read all communications, even those small slips that come with your monthly statement (if you still get one in the mail) or notices when you log on to your account. A mailed notification might look like a promotion, but it could be an announcement of new fees or restrictions that will take effect automatically if you don't act. Read the fine print and determine what's most likely to affect your account. Ask about anything you don't understand. And review your bank statement every month for unexpected fees in case there's a new charge or other requirement you missed or misinterpreted.

If it's clear that the fees on your existing checking account are going up, consider these options:

Negotiate

If you're a longtime customer or have substantial deposits, see if you can work out a better deal or ask to have certain fees waived. It's worth a try.

Downgrade your account

Explore the bank's other account offerings. Maybe there's a lower-tier service that has fewer fees or restrictions.

Change your ways

If you're already paying fees for some services—like using another bank's ATMs to get cash—now is a good time to stop, since there's a chance you'll be paying more for the convenience. Instead of paying the foreign ATM fee, stick with your bank's network or ask for cash back when making a purchase with your debit card. If your bank adds requirements for free checking, such as direct deposit or higher minimum balances, consider making the change. Consolidating your accounts from multiple banks into just one or two might help you meet new balance requirements.

Tell your family

If you share an account with a family member, make sure you also share the strategies to avoid fees. Make a list of the changes that will probably affect your family the most and hand it out or post it on the refrigerator so no one forgets.

Use a cash-back credit card

If your debit-card rewards disappear, try using a credit card for day-to-day purchases instead. Many credit cards, including some with no annual fee, offer cash-back rewards. And some pay rewards into your bank account instead of by check. For example, Bank of America recently introduced a Visa credit card that pays 3 percent back on gas purchases, 2 percent on groceries, and 1 percent on everything else. If you elect to have the rewards credited automatically to your Bank of America account, you'll get an additional 10 percent of the cash-back amount.

Check the competition

Local banks, credit unions, and online banks often have the best deposit rates and lowest charges. And smaller institutions aren't subject to the caps on debit-card transaction fees, so they might have less motivation to nickel-and-dime their customers.

There are still plenty of good deals available. For example, Ally Bank continues to offer no-fee online checking accounts that pay interest. And in July it announced its Ally Perks rewards program, which automatically deposits cash into customers' bank accounts when they use their debit card to shop at certain merchants. For most of last August, Ally cardholders who spent at least $25 at BestBuy.com or $50 at Target.com got $5 cash back.

Another example is the MasterCard debit card from the online bank PerkStreet Financial. The card pays 1 percent to 5 percent cash back on non-PIN purchases, depending on your account balance and when and where the card is used. PerkStreet's online checking accounts don't require a minimum balance and have no maintenance fees (though there's a $4.50 fee if there's no activity in your account during any given month).

Picking up a competitor's deal doesn't necessarily mean having to switch your current bank. For example, PerkStreet accounts, like those of other online banks, can be linked to existing bank accounts. But if you decide to close your bank account, follow the steps outlined in the box on the facing page for a seamless transition.

Steps to ease the move to a new bank

These tips can help you make sure the transition to a new bank or credit union goes smoothly:

• Find out if your current bank charges any fees for closing an account within a certain period after opening it. And ask about procedures you must follow to ensure that any accrued but unpaid interest isn't lost. If necessary, adjust the timing of your move to minimize any fees and maximize your interest.
• If you're moving just one account, determine whether doing so will affect the charges you pay for the accounts that are staying put.
• Check whether your new bank offers a "switch kit" to help streamline the process. These kits generally include checklists for transitioning to a new account and forms to change your direct deposits and automatic payments.
• Notify your direct-deposit payers and any businesses or utilities that make automatic withdrawals from your account or charges to your debit card.
• Set up online account access, and bookmark the URLs for the bank's home and sign-in pages. Save your user name and passwords securely.
• Set up electronic and paper folders to store communication from your new bank, including a list of charges and terms and conditions.
• Don't close your existing checking account until you're certain all your outstanding checks are paid and you've moved all direct deposits and automatic payments to the new account. Once you close the account, destroy old ATM or debit cards as well as any unused checks and deposit slips.

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