Banks Can Legally Steal Customer Funds From Private Checking Accounts

Banks Can Legally Steal Customer Funds From Private Checking Accounts







Susanne Posel, Contributor
Activist Post

In 2007, the Sentinel Management Group (SMG) collapsed, leaving many
segregated customer funds lost after they had been used as collateral.
After a plethora of lawsuits and creditor claims, a a decision earlier
this month in the 7th Circuit Court placed the banking cartels ahead of
customer claims for funds returned. Essentially, the Bank of New York
Mellon (BNYM) sued to be first in line for return on stolen customer
account monies – and won the right by the US court system.

In the mainstream media (MSM), the SMG collapse and subsequent ruling in favor of BNYM was touted as a difficulty “for customers to recoup money lost”.

SMG, a Chicago-based futures broker, had stolen more than $500 million
in segregated customer funds to use as collateral on a loan to BNYM for
in-house proprietary trading operations. Their books were audited by the
National Futures Association (NFA), however the NFA admitted that they
could not understand the convoluted mess they were provided by SMG to
sign off on. And yet they did; and approved the audit.

BNYM sued SMG to re-coup any monies owed to them.
However, these monies were customer segregated funds that SMG stole and
re-hypothecated.

In federal court, John D. Tinder, US Circuit Court Judge ruled “that
Sentinel failed to keep client funds properly segregated is not, on its
own, sufficient to rule as a matter of law that Sentinel acted ‘with
actual intent to hinder, delay, or defraud’ its customers.”


This means that once a banking customer deposits their money into an
account with a bank, the funds become property of the bank. The
customer, at the point of deposit, relinquishes all rights to that money
regardless of any laws in place, legal assurances, claims or
guarantees; and this extends from investments to private checking
accounts.

Once the bank has physical possession of your money, they own it and can
use it for any means they deem fit. The veil has been lifted on
separation of customer and bank funds. They are now legally co-mingled.

The bank could use it as collateral (as SMG did), to pay off debts, or
place it on the stock market to bump up their trading with extra cash.
And in the event that the customer allocated funds are lost, the bank
does not owe the customer the money back.

Essentially, once your deposit money in your bank account it is gone.

Fred Grede, SMG trustee remarked: “I don’t think that’s what the
Commodity Futures Trading Commission had in mind. It does not bode well
for the protection of customer funds.”

The MF Global (MFG) scandal rocked
the investment world because Jon Corzine, Chief Executive Officer of MF
Global, instructed the transfer of $200 million from their customer
segregated funds to cover the corporation’s overdraft account with JP
Morgan Chase.

Corzine emailed this order just three days before the official collapse
of MFG. At the same time Corzine was moving customer money, this missing
$6.3 billion dollars were used on bets on European indebted nations. As
those European nation’s credit ratings plummeted, JP Morgan profited
financially.

Our financial institutions have been planning for a financial collapse wherein the US government will not offer assistance. The resolution plans required
by the Federal Reserve Bank, described schemes to have the major
domestic banks remain afloat by selling off assets, finding alternative
sources of funding, reducing risky measures that make a quick buck.
These strategies were to be perfected with “no assumption of
extraordinary support from the public sector.”

Selling “non-core assets” without upsetting shareholders, while
protecting the monetary system, taxpayers, and creditors is the work of
the mega-banks who have contributed solely to the destruction of the
global financial markets. Bank of America (BoA) and Citibank have
already begun to liquidate some of their assets – an action a bank takes
when they are insolvent.

Both mega-banks and credit unions have been silently altering their
deposit/withdrawal policies to deter customers from emptying out their
accounts.

Because the digital record of monies is greater than the physical cash
held by banks, this is a scheme to stave off a “run on the banks”.

With the PATRIOT Act,
signed in 2001 by former President George W. Bush, and extended in 2011
by President Obama, it is stated that all banks must record all banking
transactions with photo ID and fingerprints that will then be sent to
an FBI database wherein all banking information tied to each individual
on file can be traced for future reference.

Of recent, when withdrawing cash from an ATM, the daily allotted amount
has decreased with some banks, thereby forcing the customer to go into
the branch and extract the difference with a teller. At this point,
according to anonymous informants, the customer is taken into a backroom
to be questioned as to why they want the cash, what they are purchasing
with the cash, and why they are not choosing to use a debit card or
another form of digital trade to make the purchase. These questions are
not only intrusive, they are illegal.

Some anonymous sources have said that banking representatives who
conduct the interrogations are directed to keep a record of customer
responses on an online application that will be sent to the FBI in
conjunction with PATRIOT Act mandates on tracking banking activity.

While American citizens sit on the fence about whether or not they even
subscribe to a banking collapse in the US, globalists like George Soros
are investing heavily in gold.

Soros recently “unloaded over one million shares of stock in financial
companies and banks that include Citigroup (420,000 shares), JP Morgan
(701,400 shares) and Goldman Sachs (120,000 shares). The total value of
the stock sales amounts to nearly $50 million” and then purchased
884,000 shares of Gold with SPDR Gold Trust.

The
mega-banks, through Wall Street, are also acquiring firearms,
ammunition and control over private mercenary corporations like DynCorp and ‘Blackwater” as authorized by the Department of Defense (DoD) directive 3025.18 .

DynCorp is a military-based private mercenary contractor that provides
(among other services) intelligence training and support, international
security, contingency plans and operations. Ninety-six percent of their
funding is based on annual revenues from the US federal government.

The international branch of DynCorp has operated as a “police force”
even assisting local law enforcement during Hurricane Katrina.

Named as investors for the amassing of gun and ammunition manufacturers
are Citibank, BoA, Barclays and Deutsche Bank who are pouring money into
Cerebus and Veritas Equity who have taken over private corporations
involved in controlling riot situations.

The Federal Reserve Bank, one of the heads of banking cartels, has their
own police force which operates as a protective security for the Fed
against the American public. As part of the Federal Reserve Act signed
in 1913, the designation of a Federal Law Enforcement – special police
officers that are exclusively regulated by authority of the Fed (whether
in uniform or plain clothes. These specialized police officers (who
train with Special Response Teams) can work in tandem with local law
enforcement or US federal agencies. These officers are heavily armed
with semi-automatic pistols, sub machine guns and assault rifles as well
as body armor.

Just this month, the Kaspersky Lab discovered Gauss, a banking
surveillance virus believed to have the capability of stealing money out
of customer’s bank accounts, as well as spying on banking transactions,
stealing login information for social networks, email and instant
messaging. So far, Middle Eastern banks have reported having been
affected by Gauss – however both Citibank and Ebay’s Paypal have also
been infected by this new viral threat to our banking systems.


It is clear that the financial collapse could be imminent. Banks are not
only preparing with contingency plans, but also amassing a private
police force for protection. With the legalization of stealing from
customer-secured funds, combined with a possible banking virus that
could provide the perfect cover for an all-in-one banking holiday, the
stage is being set for utter financial devastation.

Once all customer funds have been electronically transferred into
off-shore accounts, the specialized police forces and hired mercenaries
would be allocated forward to protect the technocrats from retaliation
for their crimes.

The banking holiday will not come with flashing neon signs. Our warnings are right in front of us, if we choose to see them.

Source:-
http://www.activistpost.com/2012/08/banks-can-legally-steal-customer-funds.html