Are international banks evil?

[Mohican]

Ola,

Know it a bit off track from trading but it related to our daily finance so I decide to post here,

went to a big international bank to open a savings account, gosh the questions the manager throw
at me as if I'm applying a loan.In end I did not apply ...(It's just a 500 dollars savings account🙁

With all the money the bank dealers in FX department are making , why are they behaving in this snobbish way of screening potential account holders? 😈

It reflected out powerful international banks are becoming turning off savers worldwide.Yes Jesse
livermore sell down their stocks drive it down before they create more damage 😈

 

[chump]

No Choice

From I believe 1st January 2004 international banks had to fall into line with the OECD inititaive for collection of data on individuals who bank with them. The bank in question would I am sure rather not have to go through the process you outlined,but they have no choice. It's a multinational govt initiative that has nothing to do with your bank other than they must comply.

 

[Mohican]

Local guns

Grunt I'm staying with local banks 😎

 

[stevespray]

Mohican....

Regarding your claim that banks fx dealers make the bank money - this isn't actually fact. Actually, according to most books on the subject, most banks delears are pretty unsuccessful given the resources which are made available to them. Try reading 'New Market Wizards' by Jack D Schwegar (i think thats how its spelt). In the book one of the people that Jack interviews was the manager of the FX desk at one of the big international banks.
For the most part the bank simply attempts to hedge potential loss rather than seeking to make money. All the currencies of the world 'float' against each other but the value of the account is purely the 'perspective' of the customer. ie If you have US$1,000 in your account and the dollar weakens 5% over 3 months then you'll still have $1,000.
The real money for a bank is made when it can 'front run' its bigest customers. ie A big customer is shifting funds about so the dealer takes a position based on the customers instructions before actually carrying the instructions out and therefore the banks position is taken before the potentially 'market moving' dealing takes place.

Steve.

 

[Trader333]

The reason for all the questions is to do with prevention of money laundering and this has become even more prevalent now that the West has become fixated on preventing terrorists and others from funding certain activities.


Paul

 

[-oo0(GoldTrader)]

U.s.a.

Hybrid Thread

Remarks by Chairman Alan Greenspan Bank regulation March 11, 2005

why are they behaving in this snobbish way of screening potential account holders? 😈

Bank Secrecy Act and Suspicious Activity Reports
The purpose of the law and its associated regulation is to capitalize on the banks' central role in payments and financial flows by, in effect, making banks partners with law enforcement to address criminal activities such as money laundering by drug dealers, the financing of terrorist activities, and fraud.