I bank at Bank of America and I just went in around 6:00 pm pacific time to get a large cash withdrawl from my account.
They told me their systems were down and that I could only withdrawl 200 bucks.
My ass their system is down, they are out of money.
I’m sure they are grovelling at the Fed’s feet as we speak, begging for more reserves.
Zero Hedge reports:
A look at the non-seasonally adjusted time series indicates that last week’s spike in M2, primarily in demand and savings deposits at commercial banks, was the highest on record! Sure enough, the bulk of this cash ended up in America’s largest depository institution, Bank of America. And yes, this was in the week prior to the massive market rout. Yet as the charts show, following every massive inflow of money into demand deposits and savings accounts, it goes right back out the next week. Which is why we wonder: is Bank of America, so flush with cash a week ago courtesy of the debt ceiling fiasco, suddenly cashless,
I’d say there’s a good chance.
Business Week reports:
Aug. 11 (Bloomberg) — The cost to protect against a default by U.S. banks soared a second day and a benchmark gauge of corporate credit risk reached a 14-month high amid fear that Europe’s debt crisis will infect the global financial system and sink the economy back into recession.
Credit-default swaps on Bank of America Corp., the nation’s biggest lender, surged to the highest since April 2009 before paring the gain. A swaps index that gauges the perceived risk of owning junk bonds, which falls as sentiment deteriorates, plunged to the lowest in almost two years.
Many Bank of America customers are having problems managing their accounts.
A spokesperson from the bank confirms that technical difficulties have occurred across Southern California, citing a “mainframe issue”.
Frustration and confusion are just some of the emotions felt by some Bank of America customers. We went searching for answers, but our only response was “technical difficulties.”
Bank of America spokesperson Tara Burke declined a phone interview, but sent an email calling it an “isolated incident” and said customers could still access their accounts.
Roberts experience didn’t match Burke’s statement.
“They just said that they don’t really know what the issue is, and they don’t know when it’s going to be back up to normal.”
Some additional points of note: