Posted Jun 3, 2014 by Martin Armstrong
While they have been proud to announce that 77,000 foreign institutional have already signed up before July 1st, they did postpone it until July 2015. Nonetheless, the damage has been done long ago when this was passed. The huge fines they are imposing on foreign banks is further undermining the European and Swiss banking systems and this is the backlash behind the headlines. The US has set in motion a trend that is turning the globe into 1984 live and unplugged.
It is irrelevant if FATCA is postponed or not. No bank will deal with any American period! The damage has been done starting in 2011 and this is creating the sharp drop in liquidity. I have reported that this trend is getting really bad. I have reported that HSBC is one of the worst offenders out there. They have the audacity to harass even British citizens living in Bermuda – prove it is your money or they will freeze it. Dah! And I should have an account with HSBC exactly why?
The airlines have joined this anti-customer approach turning very nasty and openly practice consumer fraud. Try changing a ticket and it is $200 fee even if the ticket is $200. Once upon a time you flew a particular airline because of service. It has become line going to a restaurant and the waitress just throws your food down that is burned and tells you shut-up. Then expects a 20% tip and calls you a cheap SOB for refusing to tip her. This is degenerating into the way unions destroyed America – they come first. Airlines are making it so bad you just about have to book one way tickets in business. That seems to be the agenda to just rip you off for everything possible.
The best way to deal with the banks is withdraw from the big boys and move to the smaller regional banks. The more dirty they have been, the greater they will turn over customers to please government. You want to leave the no-service-big-rat-finks because they have been illegally trading with your money and got caught, so somehow it is your fault. For them to survive, they now need to give up the smallest accounts. Move to the regionals and diversify. (custodian banks such as Bank of NY and Brown Brothers may be exceptions from the money center trading banks)