I wrote yesterday regarding alleged capital controls coming at Chase bank. This was reported at both Zero Hedge and Drudge Report. A copy of the actual letter sent to clients was published in both articles. Since then, Forbes has come out and “debunked” the thought that capital controls are beginning and they say that customers can opt for a higher fee account which will allow more than $50,000 in withdrawals per statement cycle and also allow international wires. Forbes says that this is simply Chase Bank trying to rake in more fees and nothing else.
I’m sorry but that is NOT what the letter to clients said. Below is a copy of the letter.
Specifically it says that “you will no longer be able to send international wires.” It says nothing about changing to another type of account nor does it say anything about paying higher fees to accomplish a wire…it just says NO INTERNATIONAL WIRES. This letter also states that “your activity limit for these account(s) will be $50,000 per statement cycle.” Again, no mention of changing to a different “type” of account or paying higher fees to allow more activity.
Those of us who wrote about this have been termed “the lunatic fringe” because there is no way that Chase would ever do this “and see, Forbes says it ain’t so…so it ain’t so.” Well OK, so I’m a lunatic, no arguments there. Anyone who thought that the Earth was round or not the center of the universe was also termed a lunatic so being one is OK I suppose. My point is this; the letter says what the letter says. Was it a mistake? Or Miswritten? Was it for real and did Chase get some blowback or saw some big withdrawals as a result of the letters? I don’t know and maybe we’ll never get an answer or maybe we will. All I know is that what this letter states doesn’t “smell” of capital controls, it is ABSOLUTELY capital controls. Will they actually enforce this? Change this? Send another letter telling clients that they can “pay up” for another account and everything will be fine? I don’t know. All I can do is write about what we do know and try to logically connect the dots. Unless Chase sends letters to clients that spell out their “alternatives” as reported by Forbes, the only thing I can go on is what we have. What we have is a mass mailed letter to clients telling them there access to THEIR funds is being restricted. I stand by what I wrote yesterday until Chase clears this up in writing to their clients. You decide for yourself what the letter says.
I also stand by my statement that “capital controls are coming.” I believe they are coming as sure as the sun will rise tomorrow as they have always come to countries when they over borrow and over print their currency. THAT is pure logic and actual history.