The whole world is focused on the economy, as the pandemic coronavirus brought down world markets. While stocks, commodities and barrels of oil are falling in price, in some countries there is a significant demand for cash. According to reports, the elite wall street tries to cash out 30-50 thousand dollars per person. In addition, various officials in the United States claim that the financial institutions such as Chase and Bank of America, limit the amount of cash withdrawal, writes Bitcoin.com.
US banks impose limits on withdrawals from the accounts
Cash is what every person tries to obtain in times of economic difficulties, and now banks tend to provide liquidity. World stock markets and futures continue to lose ground. The price of oil continues to fall and is at its lowest level in barrel for 17 years. Oil prices have already started to cause harm to the employees in the gas industry: 3500 workers from the factory Halliburton North Belt in Houston was fired because of lower prices. Despite the massive layoffs in such industries as airlines, tourism and construction, people are looking for cash to survive the economic storm.
Bitcoin.com reported that in a respectable suburb of new York city the Hamptons the elite of the city comes to the banks and asking to withdraw large amounts of cash.
According to reports, banks such as Chase, JPMorgan and Bank of America (BoA) to limit the withdrawal. This is due to the fact that rich new Yorkers are asked to cash on average 30-50 thousand dollars, so the banks in some areas has set a limit of 3-10 thousand. The BoA representative told the public that there is only a problem with large bills, and people can withdraw banknotes 20-50 dollars.
“We don’t keep large amounts of money in large accounts in branches because it is dangerous for our employees and has a low demand,” said BoA.
In social networks people complain about the limits on withdrawals in some banks of the USA for the last few days.
“Go today to the Bank and ask to withdraw your entire balance — was written by one person on March 17. Even if your regular withdrawal limit is $ 10,000 a day.”
On March 14, the new Yorker tweeted: “the Food chain is broken. Went to the store — shelves are empty. The meat was gone. No more eggs, [and] the Bank will allow withdrawal of only $ 2,500 a day.”
In another post on Twitter talks about a man who went to the Chase Bank and recorded the video with the Manager, who refused to give him 5 thousand dollars. In addition, the branch Manager asked the man to delete the video.
European banks close their doors, German banks impose limits on withdrawals
USA is not the only country that has problems with cash. European banks closed hundreds of branches because of the proliferation Covid-19. For example, the financial institution HVB closed the 101 branch across the EU. The report detailed that several German banks impose limits on withdrawals, and customers can rent only 1,000 euros per visit.
Since the stock market crash March 12 to remind people about the economic disasters in the past, such as the financial crisis of 2008, “Black Wednesday” in 1992 and “Black Monday” in 1987.
However, these disasters are not caused mass bankruptcies; last time it happened during the collapse on wall street in 1929. During the great depression in the early 1900’s, the 1920-ies and 1930-ies there was a mass outflow of savings, lending and financial institutions in the United States. The economic crisis caused by a coronavirus, provokes these fears.
“The banking problems start in Colorado — posted March 17, another resident of the USA. In small towns it is forbidden to come to the Bank personally along with restrictions on withdrawals”.