And now, China Halts Bank Cash Transfers

[dixiegrrrrl]

Due to the system maintenance of People’s Bank of China, Domestic RMB Fund Transfer through Citibank (China) Online and Citi Mobile will be delayed during January 30th 2014, 16:00pm to February 2nd 2014, 18:30pm.
As to the fund availability at the receiving bank, it depends on the processing requirements and turnaround time of the receiving bank
During Spring Festival, Foreign Currency Transfer Transaction through Citibank (China) Online and Citi Mobile will be temporally not available from January 30, 2014 18:00pm to February 7, 2014 09:00am. We apologize for any inconvenience caused.

http://www.forbes.com/sites/gordonchang/2014/01/26/china-halts-bank-cash-transfers-2/

a clue to what is going on may be in this related story:
Mega Default In China Scheduled For January 31

On Friday, Chinese state media reported that China Credit Trust Co. warned investors that they may not be repaid when one of its wealth management products matures on January 31, the first day of the Year of the Horse.

The Industrial and Commercial Bank of China sold the China Credit Trust product to its customers in inland Shanxi province. This bank, the world’s largest by assets, on Thursday suggested it will not compensate investors, stating in a phone interview with Reuters that “a situation completely does not exist in which ICBC will assume the main responsibility.”

http://www.forbes.com/sites/gordonchang/2014/01/19/mega-default-in-china-scheduled-for-january-31/

ya gotta love that double speak explanation

further reading shows the bank make a very large loan to a mining outfit that has been in legal trouble....
sort of a sub-prime loan to a Madoff type character.

[MADem]

1. Wow.... KICK! nt

[Warpy]

2. Woops. No wonder the world wide stock markets are laying an egg

and money is flowing back into commodities.

Now China will learn why tough laws to keep the thieves in check and enough inspectors and prosecutors to enforce them are very good things to have.

[dixiegrrrrl]

3. Rememebr HSBC that I posted about yesterday:

HSBC (Britain's largest bank) Restricts Large Cash Withdrawals
http://www.democraticunderground.com/10024387535

More than one bank doing this...hmmmmmmmm

[Warpy]

4. Yep, I wonder if the derivatives casino is starting to go.

I rather think that one will happen overnight, though, with no warning to even the usual suspects, only a handful of hedge fund boys able to salvage what they have, not that it will do them any good for several years.

[dixiegrrrrl]

7. The IMF is publicy concerned, says the news.

What with Argentina blowing up, Venasuela crumbling, greece now says it cannot meet the IMF demands,even came up with a proposal to return to slavery ( unpaid jobs) and immigration to cope with massive unemployment..

Twitches, rumblings, grumblings....and the Dow shuddered almost what..2%.?

[golfguru]

5. I smell a rat!

Why there is shortage of cash at any bank when central bankers are printing like crazy and ZIRP is Bernanke's policy being copied world over?

[dixiegrrrrl]

6. Well, one theory is

the banks have always been short cash, as they have it all tied up on speculative ventures.

Plus, the Fed has been slowing down the free money.
You will notice that Bernanke and Geithner have departed, ahead of any fall out.

[Crewleader]

8. Well said dixiegrrrrl

k&r

[golfguru]

10. dixiegrrrrl...you are well informed!

and I always value your thinking.

That exact thought also crossed my mind...
that banks must be using the money (depositors+Fed loans) for more lucrative but risky ventures.

[dixiegrrrrl]

11. they have so much money now they don't even have to pay savings accounts.

NO interest on savings accounts, didja notice?
And yet..somehow...the banks have enough to pay their CEOs 20-30-40 million a year.
Now to be fair, a ot of CEO "bonuses" are in stock futures..which certainly gives a CEO plenty of motivation on how to make even more money.

Wonderful thing about early retirement...and no obsession about housework...is I have time to read up on stuff.

I used this guide for my finance browsings:
http://www.insidermonkey.com/blog/best-finance-blogs-199748/?singlepage=1

and of course DU.

because...it is always about the money
but very few people really like to think about money, have ya noticed?

[bananas]

9. Thanks, first I heard of this.

Yikes!