Creeping Capital Controls At JPMorgan Chase? Pretty Scary...
Why? "These changes will help us more effectively manage the risks involved with these types of transactions." So... JPM is now engaged in the risk-management of ATM withdrawals?
At Chase a representative explained they were complying with new Money Laundering Laws. This is obviously a catch-all that can explain cash monitoring (though I can think of lot of other explanations) but it doesn't begin to address a reason for controlling WIRES to foreign Banks - even banks in European Capitals like Deutsche Bank or UBS.
As Tyler Durden comments at Zero Hedge:
Reading between the lines, this sounds perilously close to capital controls to us.
While we have no way of knowing just how pervasive this novel proactive at Chase bank is and what extent of customers is affected, what is also left unsaid is what the Business Customer is supposed to do with the excess cash: we assume investing it all in stocks, and JPM especially, is permitted? But more importantly, how long before the $50,000 limit becomes $20,000, then $10,000, then $5,000 and so on, until Business Customers are advised that the bank will conduct an excess cash flow sweep every month and invest the proceeds in a mutual fund of the customer's choosing?