US cash crisis: banks have limited withdrawals due to COVID-19 - ForumDaily
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US Cash Crisis: Banks Restrict Withdrawals Due to COVID-19

The whole world is focused on the economy, as the coronavirus pandemic has brought down global markets. While stocks, commodities and barrels of oil are falling in price, in some countries there is significant demand for cash. According to reports, the elite of Wall Street is trying to cash out 30-50 thousand dollars per person. In addition, various individuals in the US claim that financial institutions such as Chase and Bank of America limit cash withdrawals, writes Bitcoin.com.

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U.S. banks impose withdrawal limits

Cash is what everyone tries to get hold of during times of economic hardship, and banks are now looking to provide liquidity. Global stock markets and futures continue to lose ground. The price of oil continues to fall and is at its lowest level per barrel in 17 years. Oil prices have already begun to hurt employees in the natural gas industry, with 3500 Halliburton workers at the North Belt plant in Houston laid off due to falling prices. Despite massive layoffs in industries such as airlines, tourism and construction, people are looking for cash to weather the economic storm.

Bitcoin.com reported that in a respectable New York suburb of Hamptons, the city’s elite comes to banks and asks for large amounts of cash to be withdrawn.

Banks such as Chase, JPMorgan, and Bank of America (BoA) are reportedly limiting withdrawals. This is due to the fact that wealthy New Yorkers are asked to cash out an average of 30-50 thousand dollars, so banks in some areas have set a limit of 3-10 thousand. A BoA spokesperson told the public that there are only problems with large bills, and people can withdraw notes for $ 20-50.

“We do not keep large amounts of money in large accounts at branches because it is dangerous for our employees and has low demand,” BoA said.

On social networks, people complain about withdrawal limits at some US banks over the past few days.

“Go to the bank today and ask to withdraw your entire balance,” one person wrote on March 17. “Even if your normal withdrawal limit is $10 per day.”

On March 14, a New Yorker tweeted: “The food chain is broken. I went to the store - the shelves were empty. The meat is gone. No more eggs - [and] the bank will only allow withdrawals of $2500 per day."

Another post on Twitter tells about a man who went to Chase Bank and recorded a video with a manager who refused to give him $ 5. In addition, the department manager asked this person to remove the video.

On the subject: Catastrophic unemployment and large-scale crisis: how a pandemic affects the economy of the United States and the world

European banks close their doors, German banks impose withdrawal restrictions

The US is not the only country experiencing cash flow problems. European banks have closed hundreds of branches due to the spread of Covid-19. For example, financial institution HVB has closed 101 branches across the EU. Reports detail that several German banks are introducing withdrawal limits and customers can only withdraw €1000 per visit.

Since the stock market crash of March 12, people have been reminded of economic disasters in the past, such as the financial crisis of 2008, Black Wednesday in 1992 and Black Monday in 1987.

However, these disasters did not cause massive bankruptcies; the last time this happened during the Wall Street crash in 1929. During the Great Depression in the early 1900s, 1920s, and 1930s, there was a massive outflow of savings, lending, and financial institutions in the United States. The economic crisis caused by the coronavirus provokes these fears again.

“Banking problems start in Colorado,” another US resident wrote on March 17. “Small towns prohibit coming to the bank in person, along with restrictions on cash withdrawals.”

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Miscellanea In the U.S. US banks наличные
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