Coming Soon... Cash Withdrawal Limits By Banks : LUSENET : TimeBomb 2000 (Y2000) : One Thread

I just heard this from a very reliable banking insider, and I thought I'd pass it along...

A $75 billion plus financial services company with headquarters in Minneapolis, Minnesota, that serves millions of customers in locations throughout the Midwest and West has stated the intention to limit cash withdrawals by customers later this year.

The bank president who gave me this information is very much against this idea, but due to the size and influence of the aforementioned institution, he feels other banks may follow suit.

Take this information for what it's worth to you...

-- Nabi Davidson (, June 11, 1999


Nabi ----- id he give you a time line rather than later this year.

-- thinkIcan (, June 11, 1999.

Mutha, if you knew a little more about Nabi, it wouldn't be so hard to believe what he said. Thanks, Nabi!

-- Gayla Dunbar (, June 11, 1999.

Nabi is ALWAYS a source of reliable information,

to those who poo-poo this scenario, do a little more research...

-- Andy (, June 11, 1999.


If YOU knew anything about anything, it would be the first time!

-- FLAME AWAY (, June 11, 1999.

At the rate people are pulling out cash NOW it does not surprise me.

-- br14 (br14@bout.done), June 11, 1999.

Get real, there already are ATM bank limits. At my bank(The one with the key) use to have a $200 limit per day. Now the limit is $400 per day. At that rate it would take me about 10 days to remove the contents. I don't see the limit as my biggest problem. Do any of you? Sure, I could be wrong, it would not be the first time.

-- Ned P Zimmer (, June 11, 1999.

But won't you lose that 1.7% interest you are making now on your money market account! Ha,ha,ha, laughing all the way from the bank.

-- Bill (, June 11, 1999.

Ned, Nabi wasn't talking about ATM limits (I don't think) You could go into your bank and take our all your cash if you wanted to. As far as this idiot Mutha goes, I can see this guy in six months from now shouting at the top of his lungs "All is well!" even in the middle of riots. Are you going to chalk EVERYTHING up to doom and glooming Mutha?

-- (aiuaw@lidj.dyjh), June 11, 1999.

Nabi, thanks for the information. One of these major regionals will begin the process of limiting withdrawals. Others will be forced to follow to prevent liquidity problems. It will happen virtually at the same time. Better a month early than a day too late.....

-- Mike Lang (, June 11, 1999.

Being a midwesterner, this sounds like either Norwest or US Bank. As I've said in another thread, my bank has thought about this, but discarded in light of public relations issues. They will undoubtedly lose many depositors when this goes public. A bank can fail just as easily by a loss of depositors money (not cash) as it can by a bank run. Of course, planning for 1 shifts you to the other. catch 22.


-- newlurker (, June 11, 1999.

Folks we have a Catch 22 here. If you leave your money in the bank, and everything turns to poop, (did not use s*** in deference to the sensitive) it is possible you may lose it. But if everyone takes all their money out of the bank, causing a severe bank run, banks may fail, and you may lose your money anyway. Right?? So what difference does it make. Also, if it's really bad, there may be very little to buy, and toilet paper and coffee may become the currency of tomorrow. Right??

-- gilda (, June 11, 1999.

Sorry, new lurker, I was in a hurry, and scolled down the last few posts without reading them. I pretty much posted the same sentiments as you did. I also live in the Midwest and just this week our paper had an article about y2k and asked people to not get in a panic.

-- gilda (, June 11, 1999.


You're right about the identity of the institution; I didn't want to post the name because they haven't implemented the policy yet. The banker I talked to felt the same as you; he thought it would be a public relations nightmare and would make matters worse. But when an institution this large implements such a policy, it will be imitated by other banks to some degree. I believe this policy is an indication of the panic some bankers are starting to feel over the possibility of large cash withdrawals and the accompanying liquidity problems they will bring. It is a Catch-22 situation...

-- Nabi Davidson (, June 11, 1999.

Norwest doesn't exist anymore. It was merged with Wells Fargo a few months back with headquarters in San Francisco.

-- Nathan (, June 11, 1999.

I'm sorry if I broke some protocols by mentioning specific banks. Hope you don't get into trouble, Nabi. I am wrestling with this situation every day.

I just thought of something else the other day, I may have to start another thread. Here it my thought process. December 31 (if we make it), will be hell for banks. In CST, it will be 7:00 a.m. on Dec 31st when New Zealand and Fiji are at Midnight. This means in the US, we will essentially have a full business day to investigate potential problems. This also means that when and if SHTF in NZ, Japan, China, Russia, etc. at Midnight, the day will just be starting in the US, and we will all have to cope with the panic.

-- newlurker (, June 11, 1999.

Nathan, if they did merge, Norwest still exists..? My mgtg statements still say Norwest.........

-- Lisa (, June 11, 1999.

Norwest most definitely still exists. I can think of 1.2 million loans with their name attached to them. Maybe the bank and the mortgage company have 2 different ID's but there is a very large corporation out there called Norwest Financial Services. No doubt about that.


-- Deano (, June 11, 1999.


December 31 is going to be pure hell anyway. That's when people are all supposed to get in line at the ATM and the gas station, remember? All 260 million of us at the same time.

This was the government advice.


-- Dog Gone (, June 11, 1999.

Lisa, Deano,

Nope, Norwest (NYSE: NOB) no longer exists. It has been merged with Wells Fargo (NYSE: WFC) headquartered in San Francisco, CA. The old Norwest statements still say Norwest and the branches still have Norwest signs, but this is all scheduled to be replaced within the year.

-- Nathan (, June 11, 1999.

Deano -

And you're in the business, too. *tch* *tch* 8-}]

Wells Fargo, Norwest agree on $34 billion merger

Tuesday, June 9, 1998

By CATALINA ORTIZ, AP Business Writer

SAN FRANCISCO - Wells Fargo & Co. and Norwest Corp. are merging into what would be the nation's seventh-largest bank - the latest deal in a rush by banks, brokerages and insurers to expand their base of customers while lowering costs.

The combined institution, to retain the storied Wells Fargo name, would have about $191 billion in assets, more than 90,000 employees, about 20 million customers and 5,777 financial services outlets worldwide. It would have more branches and Internet customers than any other U.S. bank.

The deal, a stock swap valuing Wells Fargo at about $34 billion, was announced Monday...

-- Mac (sneak@lurk.hid), June 11, 1999.

This means that Minneapolis is losing the HQs of both Norwest and Honeywell (if that deal goes through). Hate to be a non-profit in that neck of the woods once the head honchos relocate...

-- Mac (sneak@lurk.hid), June 11, 1999.

I believe the mortgage portfolio will still reside in the Des Moines offices. They currently service 1.2 million loans out of that portfolio and there are not on the schedule here for any kind of conversion service. Maybe the bank and the mortgage company are totally separate from each other??

Hey Mac - you know as well as I it's extremely hard to keep up with who's who in any financial industry anymore. Mergers and acquisitions are happening at record paces these days with Y2K on the horizon. We're actually reaping the benefits of being a compliant company at this point in the game. There are some service bureaus out there that are not ready and are losing customers to us, Fiserv, EDS, etc....everyday. Both companies mentioned above have their mortgage portfolios on our system. Hope everything is going well with you and yours Mac.


-- Deano (, June 11, 1999.

Deano - Which Fiserv and EDS products are you referring to that are not ready?

Just wondering

-- newlurker (, June 11, 1999.

Deano -

Yeah, was just giving you a hard time. Way things are going, pretty soon there's gonna be only two or three banks. Sure would make your life easier, wouldn't it? 8-}

Your co's current success is simply an example of what one of those WDCY2K'ers called "IT Darwinism". Let's just hope that this particular change in the ecosystem doesn't have too big a "die-off", shall we?

Preps continue apace. Best to BB and everyone on your end.

-- Mac (sneak@lurk.hid), June 11, 1999.

Thanks Mac! I'll pass that on.

Newlurker - I think you may have misread my posting. I said that non-compliant service bureaus are losing customers to us, FISERV and EDS (among other I'm sure). To my knowledge, FISERV and EDS are both compliant as far as their mortgage software goes.


-- Deano (, June 11, 1999.

Deano - That is exactly what I did. Thanks for the explanation. You had me worried there for a minute. Everything I'd been getting from them said they were A-OK, as well as the testing we did. Just a simple misunderstanding. Thanks

-- newlurker (, June 11, 1999.

Newlurker - no problem! Glad to be of help. Ya know there's another service bureau out there called Excelis that is supposed to be pretty damned good. Written Y2K compliant from scratch (4 digit years and everything!) about 4-5 years ago. Bet that Y2K project manager has had an easier year than the rest of us!


-- Deano (, June 11, 1999.

There is also a product from a company called ITI (Information Technology, Inc) in Lincoln, NE, that supposedly supports 4000 banks in the US (mostly smaller) for core processing: deposits, loans, g/l, etc. It was written Y2K compliant in 1985. Stores and sorts dates from the number of days offset from 1900. Essentially a date will be a 5-digit number. A bank I am working with uses this and has had no problems testing. Hell, there's nigh 4000 banks out there that shouldn't have a problem with thier core systems. good news all around.

-- newlurker (, June 11, 1999.

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