William (aka Bill the Godfather)

William (aka Bill the Godfather)

Saturday, March 13, 2010

Notice to customers: We reserve the right rip you off. Thank you for banking with us.

Jacksonville, FL based EverBank – a bank with approximately $8 billion in assets and 1800 employees according to the company website – recently sent this notice to customers (courtesy of Warren Bevan):

"Non-FDIC Insured Metals Select Changes" -
Section 6.3.7. General Terms: We have added language clarifying our right to close your account. We may close your Metals Select Account at anytime upon reasonable notice to you. If we believe that it is necessary to close your account immediately in order to limit losses by you or us [GG: We really don’t give a s**t about you; it’s us that we care about], we may close your account prior to providing notice to you. Notice from us to one of you is notice to all of you [GG: the nerve of these people!]. If we close your account, we reserve the right to convert your Precious Metals to U.S. dollars and tender the balance to you by mail [GG: I am willing to bet my entire Gold stash that when you receive these "converted" dollars, they will be nowhere near the market price of physical. What did you think that whole "limit losses" thing meant?] .
Source

Addendum: I link the source of the report out of respect for the usual courtesies online. However I do not necessarily endorse the commentary at that website.

2 comments:

Tom (St. Louis) said...

You may be treading on thin ice here. Your clip specifies "Non-FDIC Insured Metals Select Changes." This appears to reference an investment product not a demand deposit or savings account. Banks and investment houses can - and do - sell clients out under appropriate circumstances that are defined to the client. A Metals Select account is for a savvy client, not an uninformed investor. Furthermore, the attached article also cites an announcement by CitiBank regarding a 7-day hold on demand deposit transactions. Banks have actually held these rights at least since the Great Depression to stem a "run" on the Bank. Depositors need to do their homework, not assume that Uncle Obama is going to prect them.

Reactionary said...

Furthermore, the attached article also cites an announcement by CitiBank regarding a 7-day hold on demand deposit transactions. Banks have actually held these rights at least since the Great Depression to stem a "run" on the Bank.

Correct. Banks got government regs passed to protect them when they gamble with depositors' money. When the gamble pays off, the bankers award themselves large bonuses. When the gamble doesn't pay off, Uncle Sugar covers the bankers so they don't have their assets seized.

Privatizing profits, socializing losses.