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No-carry consequence

Suspicious as hell unless the dude's bag had a giant dollar sign printed on it. I'd definitely bring backup if I was carrying $200K in cash.
 
I don't even use a bank check when moving that kind of money. It's either my check if cleared funds are not needed in a hurry; ACH or wire. Lose a bank check and the bank will wait for it to go stale in 6 months before it will process a refund.

I had a vendor insist on a bank check once - as in "merchandise stays on truck if you try to pay with personal check". Fine, but the vendor discarded the check. He was not pleased when I told him "It takes 6 months for a refund; I will send you the money the day my bank reimburses me for the lost check". My touche on the letter was "I would have been able to include a replacement check with this letter if you had not insisted on treating me as a bad check risk."
 
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I was pretty nervous when I brought my wife's engagement ring to Downtown Crossing for a setting and that was nowhere near $200k. I think I brought an extra mag and OC spray that day. No way I'd walk around with $200k in cash all willy-nilly.
 
one-eyed Jack said:
If you make cash withdrawals you have to plan ahead.
Click to expand...
Which gives anyone in the chain between you and that cash time to make a phone call....

It would not surprise me if the FBI gets the phone records of all employee phones and runs a record check on everyone called between the call to get the money ready and the theft.
 
ReluctantDecoy said:
Sucks, but what was he planning to do with $200k cash that he needed cash instead of using a check or any number of other transfer methods?
Click to expand...
You put the cash in a secure vault(s) in another state(s) where you can "withdraw" what you want at any time. Bottom line is that it's YOUR $$ to do with what you want rather than have it at risk in a bank as an interest free loan to the bank. Jack.
 
one-eyed Jack said:
You put the cash in a secure vault(s) in another state(s) where you can "withdraw" what you want at any time. Bottom line is that it's YOUR $$ to do with what you want rather than have it at risk in a bank as an interest free loan to the bank. Jack.
Click to expand...
The only risk in an FDIC bank with deposits below the limit is government seizure, including civil cases. Getting all your assets off books is one way to become judgment proof.
 
one-eyed Jack said:
You put the cash in a secure vault(s) in another state(s) where you can "withdraw" what you want at any time. Bottom line is that it's YOUR $$ to do with what you want rather than have it at risk in a bank as an interest free loan to the bank. Jack.
Click to expand...
I get what you're saying but there's also security provided by the bank. Obviously he needed someone else to secure his funds for him.
 
one-eyed Jack said:
You put the cash in a secure vault(s) in another state(s) where you can "withdraw" what you want at any time. Bottom line is that it's YOUR $$ to do with what you want rather than have it at risk in a bank as an interest free loan to the bank. Jack.
Click to expand...

That makes zero sense to me. You can do the same with any FDIC insured bank, and you'd have the advantage of earning some interest. Granted, interest rates are at near zero right now, but I don't expect that to remain the same forever. If you have $200k in the account, you're not paying a dime for the account. True, the bank utilizing the money on their end, but if you know what you're doing, you can still get a piece of that pie.

Don't get me wrong, I don't 100% trust any bank. However, I'm also not tin foil hat over it as long as they are FDIC insured and I'm properly nestling amounts per limits (or using sweeps). You put your money in some so-called vault and who knows what type of insurance you have on your money.
 
Soundwave said:
I get what you're saying but there's also security provided by the bank. Obviously he needed someone else to secure his funds for him.
Click to expand...
"Security" at the bank was a guy that they brought in to watch the cash being packed up for me. He wouldn't show me ID or his CCW and only saw me to the door. Worthless POS. Jack.
 
I don't mean armed security lol I mean that it's in a secure and insured place and he can spend it with the swipe of a card or pen.
 
ReluctantDecoy said:
That makes zero sense to me. You can do the same with any FDIC insured bank, and you'd have the advantage of earning some interest. Granted, interest rates are at near zero right now, but I don't expect that to remain the same forever. If you have $200k in the account, you're not paying a dime for the account. True, the bank utilizing the money on their end, but if you know what you're doing, you can still get a piece of that pie.

Don't get me wrong, I don't 100% trust any bank. However, I'm also not tin foil hat over it as long as they are FDIC insured and I'm properly nestling amounts per limits (or using sweeps). You put your money in some so-called vault and who knows what type of insurance you have on your money.
Click to expand...
Sure. You are insured by a company that is $23 trillion in dept. If the SHTF, you can make a claim, be #23,452 in line and wait 4-8 years. To hell with that. My vaults are not "so-called". Jack.
 
ReluctantDecoy said:
Sucks, but what was he planning to do with $200k cash that he needed cash instead of using a check or any number of other transfer methods?
Click to expand...
Maybe he was trying to buy Wyatt Earp's 45

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Soundwave said:
I get what you're saying but there's also security provided by the bank. Obviously he needed someone else to secure his funds for him.
Click to expand...
Not from civil judgments, government seizure, nursing homes or use in means testing evaluations.
You put your money in some so-called vault and who knows what type of insurance you have on your money.
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No matter how secure your vault, a fotay in your face and large gauge wire cutters removing your fingers and toes and you will open it right up.
 
one-eyed Jack said:
Sure. You are insured by a company that is $23 trillion in dept. If the SHTF, you can make a claim, be #23,452 in line and wait 4-8 years. To hell with that. My vaults are not "so-called". Jack.
Click to expand...
FDIC insurance makes funds available to depositors of insolvent banks on the next business day after reopening. If you work for a bank be careful - "receipt of deposit by insolvent banking institution" makes one a MA PP.

Your vaults may not be "so-called" but they can be opened with wire cutters unless on a time lock (see previous post).
 
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Rob Boudrie said:
FDIC insurance makes funds available to depositors of insolvent banks on the next business day after reopening. If you work for a bank be careful - "receipt of deposit by insolvent banking institution" makes one a MA PP.

You vaults may not be "so-called" but they can be opened with wire cutters unless on a time lock (see previous post).
Click to expand...
And the PD will issue your LTC within 40 days. I just don't buy any of this shit. Jack.
 
One consequence of attempting to be your own bank is everyone tries to treat you like a criminal and your money as illegal.

A friend of mine, family business owner carrying on from his father, was having a hard time gaining the rest of the financing required when buying a house. He asked "is it ok if I just bring the last 100k in cash?", they agreed (I guess not understanding what cash meant).. and then totally freaked out at the duffle bag full of $$ at the closing, perfectly clean legal $$ just tucked away over years by people who don't keep everything in the bank.

Heard similar stories of people trying to buy a new car in cash, dealerships usually won't take it.
 
Guy should have opened a Safety Deposit Box Account at that bank and placed the cash in the drawer.
Then he could come back at his leisure and pull it out in smaller blocks... without anyone knowing his schedule.

1596830390352.png
 
The video didn't show the earlier part of the criminal act. Let's say the perp sneaked up on the guy, knocked him down and grabbed the money bag. What would you do if it were you? Draw and shoot the BG in the back? I would. Kevin Reddington charges a flat fee of $100K for justified homicide defense, right? I'd still have half of my money left and satisfaction that I drilled the SOB.
 
teamRR said:
One consequence of attempting to be your own bank is everyone tries to treat you like a criminal and your money as illegal.

A friend of mine, family business owner carrying on from his father, was having a hard time gaining the rest of the financing required when buying a house. He asked "is it ok if I just bring the last 100k in cash?", they agreed (I guess not understanding what cash meant).. and then totally freaked out at the duffle bag full of $$ at the closing, perfectly clean legal $$ just tucked away over years by people who don't keep everything in the bank.

Heard similar stories of people trying to buy a new car in cash, dealerships usually won't take it.
Click to expand...
Duffle bag? Unless it's smaller bills, $100,000 in $100 bills in good shape is a stack less then 4 1/2 inches thick. Will fit in your jacket pocket. Also, maybe he had some $500 ones. Now collector items. Jack.
 
one-eyed Jack said:
Sure. You are insured by a company that is $23 trillion in dept. If the SHTF, you can make a claim, be #23,452 in line and wait 4-8 years. To hell with that. My vaults are not "so-called". Jack.
Click to expand...

If SHTF as you propose, in that the government through the treasury no longer grants FDIC borrowing power against US securities, there are far worse things to worry about than just one bank or financial institution failing. That means total economic collapse on levels we have never seen or can even calculate. End of the world type anarchy where your paper money under your bed is meaningless. But it won't get there. Not in our lifetimes at least.

So I'm not worried about that type of disaster. I'm more concerned with something more realistic like bank server data breach where my money is funneled out of the account. They cover that, and have $30 billion in liquidity outside of pulling loans from government securities for us single case small fries.
 
Yes, keep your munney safe, in one of them thar FDIC-insured banks....

** Not a financerial guru, but...had this from the past:



Following the 2008 Banksterhaben cra$h, and the Greece/Cypress me$$, ‘bail in’ became a…..matter.

Dug up some info., to help understand the substance, behind the term.


How Goverment Bail-Ins Save Institutions

A pertinent excerpt

With a bank bail-in, the bank uses the money of its unsecured creditors, including depositors and bondholders, to restructure their capital so it can stay afloat. In effect, the bank is allowed to convert its debt into equity for the purpose of increasing its capital requirements. A bank can undergo a bail-in quickly through a resolution proceeding, which provides immediate relief to the bank. The obvious risk to bank depositors is the possibility of losing a portion of their deposits. However, depositors have the protection of the Federal Deposit Insurance Corporation (FDIC), insuring each bank account for up to $250,000. Banks are required to use only those deposits in excess of the $250,000 protection.

(My Comment: Of course, some of us well know, that the FDIC’s total holdings, would not go far, in a larger collap$e; thus, it is something of a proverbial red herring….

———————————————————————


Why Bank Bail-Ins Will Be the New Bailouts


—————————————————————————————

This is loooog, with lottsa formulae and high-fi terminology, but….I include a pertinent excerpt:

https://www.fdic.gov/bank/analytical/cfr/bank-research-conference/annual-18th/1-berger.pdf

From P. 9 -


3.3 Post-Crisis Bail-in Regime


After the crisis, the Dodd-Frank Act introduced the Orderly Liquidation Authority (OLA). OLA is triggered for a large BHC when the Treasury Secretary, in consultation with the President, as well as two-thirds of the Federal Reserve and FDIC boards, finds that the BHC is in default or danger of default, and its failure would have serious adverse financial stability consequences. The critical point of distress may be due to a severe capital shortfall, a liquidity problem, or both. When OLA is triggered, the FDIC temporarily takes over the BHC and fires its management, while banks and other holding company subsidiaries continue to operate. There is also a bail-in in which shareholders are wiped out and subordinated debtholders and possibly other uninsured creditors have part of their debt claims turned into equity capital, so that the BHC becomes well capitalized. The BHC is then returned to private hands with new management.9

**The bolded-red is, potentially…..you.

———————————————————————————————————————

From the NY Fed…..


This paragraph is on P. 210, is about the only clarity for an individual account holder:


A checking account is a financial liability. People hold these accounts because they are liquid. A delayed insolvency distribution is an illiquid distribution. An illiquid distribution is costly. For an individual, these costs may include bad credit reports, eviction, or delayed medical care. For a firm, these costs may include strained relations with creditors, or even its own insolvency. For a megabank, the costs can extend to chain-reaction illiquidity and insolvency: systemic risk. In a typical bank insolvency, checking accounts are typically paid in full with no delay.

On P. 217, Section 3. Bail-In, begins to speak of the mechanics, but….is, ultimately, BanksterSpeak, essentially indecipherable, toward the understanding of an account-holders risk...
 
AND.....



What Is a Bail-In and How Does It Work?

BY JUSTIN KUEPPER


Updated June 25, 2019


Most people are familiar with the concept of a bailout following global economic crisis, when many governments were forced to rescue private institutions. But, there's another term that became increasingly common in the financial media during the European sovereign debt crisis — called a "bail-in". This term reflects a new approach that's being used as an alternative to bail-outs, which have become unpopular among citizens worldwide.

Bail-Ins Versus Bail-Outs

Bail-outs occur when outside investors, such as a government, rescue a borrower by injecting money to help make debt payments. For example, U.S. taxpayers provided capital to many major U.S. banks during the 2008 economic crisis in order to help them meet their debt payments and remain in business, as opposed to being liquidated to creditors. This helped save the companies from bankruptcy, with taxpayers assuming the risks associated with their inability to repay the loans.

According to The Economist, the magazine that coined the term "bail-in", a bail-in occurs when the borrower's creditors are forced to bear some of the burden by having a portion of their debt written off. For example, bondholders in Cyprus banks and depositors with more than 100,000 euros in their accounts were forced to write-off a portion of their holdings. This approach eliminates some of the risk for taxpayers by forcing other creditors to share in the pain and suffering.

While both bail-ins and bail-outs are designed to keep the borrowing institution afloat, they take two very different approaches to accomplishing this goal. Bail-outs are designed to keep creditors happy and interest rates low, while bail-ins are ideal in situations where bail-outs are politically difficult or impossible, and creditors aren't keen on the idea of a liquidation event. The new approach became especially popular during the European Sovereign Debt crisis.

Using Bail-Ins to Save Institutions

Most regulators had thought that there were only two options for troubled institutions in 2008: taxpayer bailouts or a systemic collapse of the banking system. But, bail-ins soon became an attractive third option to recapitalize troubled institutions from within, by having creditors agree to rollover their short-term claims or engage in a restructuring. The result is a stronger financial institution that isn't indebted to governments or external influencers — only its own creditors.

Similar strategies have been used in the airline industry to keep them running throughout bankruptcy proceedings and other turmoil. In these scenarios, the companies were able to reduce the payments to creditors in exchange for equity in the reorganized company, effectively enabling the lenders to save some of their investment and the companies to stay afloat. The airlines would then benefit from the reduced debt load and their equities - including that issued to debt holders - would increase in value.

Interestingly, bail-ins can complement bail-outs in some cases. Successfully bailing-in some creditors gets rid of some financial strain, while securing additional financing from others helps the situation by reassuring the market that the entity will remain solvent. But, the risk is always that the bail-in of some creditors will discourage others from getting involved, since they'd need to take on the same reforms. This makes bail-ins less common during systemic crises involving many financial institutions.

The Future of Bail-ins

The use of bail-ins in Cyprus' banking crisis has led to concerns that the strategy would be used more often by countries when dealing with financial crises. After all, politicians can avoid the thorny political issues associated with taxpayer bailouts, while containing the risks associated with letting a bank failure lead to systemic financial destabilization.

The risk, of course, is that the bond markets will react negatively. Bail-ins becoming more popular could increase risks for bondholders and therefore increase the yield that they demand to lend money to these institutions. These higher interest rates could hurt equities and end up costing more over the long-term than a one-time recapitalization by making future capital much more expensive.

In the end, many economists agree that the world is likely to see a combination of these strategies in the future. With Cyprus having set a precedent, other countries now have a template for the actions and an idea of what will occur afterwards. The financial markets, on the other hand, remain anxious as share prices in Cyprus banks have reflected.
 

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