European regulators and politicians are convinced that a vast amount of cash in Cypriot banks belongs to Russian money launderers, our business editor writes.
Rather than keeping cash locked in their home banks say most cash-out refi borrowers have significant equity in their home or they own it outright they're choosing to put it to work elsewhere.
It is not unusual for the European Central Bank to lend cash to banks in the Eurozone.
Although this coincides neatly with the new-year fall in share prices, much of the extra cash remained untouched in the banks, rather than burning holes in consumers' or share-buyers' wallets.
Instead, he's simply going to give the banks cash in return for stock.
Out of at least six cash-strapped banks in which Mr Suharto's close relations held big stakes, three were included in the list of 16 that were closed at the end of October.
As you might expect, high end New York City apartments in condominiums and co-ops are largely purchased by Wall Streeters or foreigners seeking a safer haven for their cash than the banks in their own countries provide.
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In Europe, banks are still parking their cash in the safety of the European Central Bank, even after the ECB made doing so more expensive in hopes of boosting interbank lending.
The fear was this tax trend could cause a run on banks, with wealthy account holders pulling their non-insurable cash out and putting it in safer banks in northern Europe or elsewhere.
Users can find lost cash sitting in dormant accounts in banks, building societies and National Savings and Investments.
Not raising the debt ceiling would restore the value of cash in the bank -as banks would have to raise the interest rates they pay savers.
The jobless initiative appears to be phase two of the government's strategy to stem Britain's startlingly dire economic decline, the first being Gordon Brown's announcement in October to invest government money in cash-strapped British banks, including Royal Bank of Scotland and Lloyds TSB.
In this case, banks would leave small amounts of cash in the vaults at their peril.
The injection of fresh cash by central banks eventually succeeded in pushing money-market rates back down.
But today, when banks are hoarding cash in case they need it and are unwilling to lend to each other for anything longer than a day at a time, loans lasting three months, for instance, are being replaced with overnight ones.
On this score, reality is dawning on policy makers: Last week, Bank of England Governor Mervyn King, the high priest of the global regulatory onslaught, called for a rethink of the Basel liquidity rules that have led banks to hoard cash in ultra-low-yielding central bank reserves and government bonds.
It turns out banks are awash in cash and able, ready, and willing to finance giant deals.
ATMs of other banks in Cyprus dispensed cash normally, he said.
Depositors and investors looking for safe banks to park their cash in these turbulent times should look beyond the US, to Europe and the Asia-Pacific region.
Banks can deposit all kinds of collateral with euro-area central banks in return for cash without paying a penalty rate, while, until the latest joint operation, the Fed still demanded a penalty rate as did the Bank of England, which also accepted only high-quality collateral.
As we discussed in last month Monetary Watch , the recent acceleration in uncovered money substitutes is no longer just about depositors liquidating time and other term deposits in favor of instantly redeemable demand and savings deposits (in Austrian speak, bank depositors liquidating credit claims, raising cash, then depositing and holding that cash in money substitute form with those same banks).
Mr Viner also thinks more than two-thirds of big companies will switch banks in search of a seamless cash-management service across Europe.
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Too often such loans end up in jeopardy as banks strive to get cash by demanding immediate repayment or by reducing lines of credit.
There was concern that television cameras focused on Cypriot ATM machines could show long lines of people waiting to withdraw cash which could in turn spook depositors in banks in other European Union countries.
FORBES: A.M. Kitco Metals Roundup: Gold Weaker amid Relative Calm as Banks Reopen in Cyprus
By joining the U.S. Federal Reserve and other major central banks in flooding the economy with cash, the Bank of Japan hopes to get corporations and consumers to begin spending more and end a long malaise.
In most cases, banks will replace money stolen this way in a few days, but being without cash is a major inconvenience.
Rates are already extremely low and banks and corporations are already awash in cash, he says.
The government, via the offices of the central bank, agrees to fund banks with as much cash as they need in order to be able to pay off depositors.
Mr Frenkel alleged that money laundering is a trivial scam compared with money dirtying, in which dodgy banks illicitly offer access to cash that can be used, for, say, bribing government officials.
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