http://www.zerohedge.com/news/2013-10-03/us-banks-stuffing-atms-20-30-more-cash-case-panicked-withdrawals
( Runs on banks being prepared for ? )
Submitted by Tyler Durden on 10/03/2013 18:31 -0400
Submitted by Tyler Durden on 10/03/2013 19:03 -0400
( Runs on banks being prepared for ? )
US Banks Stuffing ATMs With 20-30% More Cash In Case Of Panicked Withdrawals
Even as the fearmongering over the debt ceiling hits proportions not seen since 2011 (when it was the precipitous drop in the market that catalyzed a resolution in the final minutes, and when four consecutive 400 point up and down DJIA days cemented the deal - a scenario that may be repeated again), some banks are taking things more seriously, and being well-aware that when it comes to banks, any initial panic merely perpetuates more panic, have taken some radical steps. The FT reports that "two of the country’s 10 biggest banks said they were putting into place a “playbook” used in August 2011 when the government last came close to breaching the debt ceiling. One senior executive said his bank was delivering 20-30 per cent more cash than usual in case panicked customers tried to withdraw funds en masse. Banks are also holding daily emergency meetings to discuss other steps, including possible free overdrafts for customers reliant on social security payments from the government.
The problem with bank runs is that often times, steps taken to mitigate future panics become self-fulfilling prophecies. Hopefully this is not one of those cases. Then again, since increasingly fewer Americans actually have money in deposit and savings accounts with banks there is likely nothing to worry about.
h/t Gaganpreet
http://www.zerohedge.com/news/2013-10-03/jamie-dimon-no-longer-chairman-jpms-primary-banking-subsidiary
Jamie Dimon No Longer Chairman Of JPM's Primary Banking Subsidiary
Hidden deep in the pages of JPMorgan's Living Will report just released by the FDIC, the WSJ has found that CEO Jamie Dimon (still Chairman of the overall JPM entity) has relinquished his position as Chairman of the banking conglomerate's major deposit-taking subsidiary. While the bank claims this is "solely to create a more uniform structure among our subsidiary boards," one can't help but feel this is driven by unrelenting pressure from the administration (and its regulators) as the deposit-taking subsidiary had its confidential management rating downgraded from a 2 to a 3 on a scale of 5, a rare score for such a large institution; and faces public enforcement actions demanding changes to alleged risk-management, anti-money-laundering and debt-collection weaknesses.
James Dimon has relinquished his chairmanship of J.P. Morgan Chase & Co.'s main operating bank, according to public records and people familiar with the situation.He shed the title on July 1, one of these people said. In a document made public Thursday, Mr. Dimon is listed as chairman emeritus of J.P. Morgan Chase Bank N.A., the deposit-taking subsidiary that operates branches in 23 states as well as several other countries....The move doesn't affect Mr. Dimon's status as CEO or chairman of J.P. Morgan's parent company board, a more powerful body that provides oversight of all company operations....A J.P. Morgan spokesman said the governance change for one of J.P. Morgan's largest subsidiaries wasn't the result of outside pressure....The deposit-taking subsidiary once chaired by Mr. Dimon last year had its confidential management rating downgraded from a 2 to a 3 on a scale of 5, a rare score for such a large institution, say people familiar with the move. Since January, that subsidiary's primary regulator has issued public enforcement actions demanding changes to alleged risk-management, anti-money-laundering and debt-collection weaknesses. The bank is working to fix the problems identified by the orders.The J.P. Morgan Chase spokesman said the change in Mr. Dimon's title happened "solely to create a more uniform structure among our subsidiary boards."
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