A banking giant will now terminate customer accounts amidst today’s painful economy reports DailyHodl.
“London-based lender Barclays says it plans to terminate the accounts of thousands of British citizens who are currently residing outside the United Kingdom.
The bank says it’s contacting expatriates living outside the UK about the coming closure of their savings or current accounts,” says the online magazine.
Barclays says all customers must have an acceptable UK address or else the lender will permanently shutter their accounts.
“Your address must be in one of these countries:
- Northern Ireland
We can’t accept a PO Box, c/o or a Barclays branch address.”
According to the bank’s website, customers may be exempted from the new ruling as long as they meet certain qualifications.
“You’ll only be able to have an address outside the UK and keep your accounts open if:
- You’re a UK Crown employee, or you’re the spouse or civil partner of a UK Crown employee
- The address outside the UK on your account is for someone who manages your account for you (for example, someone who has power of attorney), or for someone who’s set up to receive information on your behalf (for example, an accountant or lawyer)
- You’re outside the UK on a temporary basis for six months or less and will be moving back to the UK.”
Yahoo! Finance reports that affected customers have six months to find a new bank where they can transfer their funds.
They can also open an International Bank Account which requires them to hold £100,000, worth about $121,000, across their Barclays savings and investment accounts to avoid a £40 ($48) monthly fee, reports DH.
Other Bank News Today
New warnings of bank collapse have begun to surface due to massive unrealized losses, per the latest FDIC data.
Banks have now reported having more than $309 billion in unrealized losses for the second quarter ending on June 30 alone.
The FDIC reported that all 4,645 FDIC-insured financial institutions had $309.6 billion in unrealized losses on held-to-maturity securities.
According to Bank of America’s federal regulatory filing known as the Call Report, for the quarter ending June 30, 2023, it had $105.79 billion in unrealized losses on its held-to-maturity (HTM) securities, reports Wall Street on Parade.
Bank of America’s unrealized losses represents 34% of all unrealized losses on held-to-maturity securities reported by the 4,645 FDIC-insured commercial banks and savings institutions.
“Not only are Bank of America’s unrealized losses beyond the norm on a percentage basis, but the total dollar amount of its held-to-maturity securities are also far beyond the norm.
In terms of assets, Bank of America is the second largest federally-insured bank in the U.S. with $2.4 trillion in assets. (That’s just the federally-insured commercial bank unit of Bank of America. The bank holding company has $3.1 trillion in assets and includes the giant retail brokerage firm and investment bank, Merrill Lynch.)
JPMorgan Chase is the largest bank in the U.S. with $3.38 trillion in assets at its federally-insured bank (Chase Bank) and $3.87 trillion in assets at its holding company, says WoP.
CPA/CFA Sandy Peters says this extreme amount of unrealized losses is what cause Silicon Valley Bank (SVB) to collapse.
“This is what SVB did. At 12/31/2022, SVB reflected $91.3 billion of HTM financial instruments, 43.1% of its balance sheet, at amortized cost. Their fair value was only $76.2 billion, or $15.1 billion less than their carrying value.”
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