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A rant about our modern financial industry

cantdecide

Member
Dec 21, 2012
384
237
Boulder, CO
Generally in these days of low interest rates, holding a float isn't so profitable as all the other reasons to hold your money...
1) Banks love credit cards... That is how they make money... Frequently 1%. Government mandated systems such as ACH that are free are discouraged by the banks as much as possible. They would be in a mess if they made ACH easy. Similarly for wire transfer type operations wherever they can make a premium expensive transaction they will.
2) Fraud and compliance... Fraudsters (who are frequently close relatives) are willing to go to a lot of effort for $100k. If Fraud is 1% then they are losing $1000 on average for a $100k transfer.... They obviously can't afford this, so they do need to be careful
 

green1

Active Member
Mar 25, 2014
4,548
1,123
Calgary, Alberta, Canada
Generally in these days of low interest rates, holding a float isn't so profitable as all the other reasons to hold your money...
1) Banks love credit cards... That is how they make money... Frequently 1%. Government mandated systems such as ACH that are free are discouraged by the banks as much as possible. They would be in a mess if they made ACH easy. Similarly for wire transfer type operations wherever they can make a premium expensive transaction they will.
2) Fraud and compliance... Fraudsters (who are frequently close relatives) are willing to go to a lot of effort for $100k. If Fraud is 1% then they are losing $1000 on average for a $100k transfer.... They obviously can't afford this, so they do need to be careful
Neither seem to apply here.
1) I couldn't use a credit card here if I wanted to, and they weren't even willing to do an expensive wire transfer, it simply wasn't an option.
2) I don't think there's much fraud risk to let me transfer money they know is in my account to somewhere else, similarly, there's no real fraud risk when a financial institution receives an electronic transfer from another financial institution, because there's no way for it to be clawed back once it's through.

the only real answer is that they're trying to hold the money as long as they can.

I heard a rumour that somewhere in Europe told the banks to clean up this disaster and make money transfers between banks instantaneous, and it worked, the banks there developed a way to make it happen. Unfortunately it took government regulation to do it.
 

HankLloydRight

No Roads
Jan 18, 2014
12,999
11,038
Connecticut
Turns out my bank doesn't do wire transfers!!!

I'm still trying to figure this one out. How does any bank survive in the 21st century NOT doing wire transfers???

Is this your bank?

Old-Western-Bank.jpg
 

green1

Active Member
Mar 25, 2014
4,548
1,123
Calgary, Alberta, Canada
I was shocked as well. The bank I use is a low-cost internet only bank, but this is the first time I've ever found them to be behind other banks in any service. (The bank in question is Tangerine if anyone is wondering)

I also double checked my brokerage to see if I did things backwards and should have moved my other money to there to wire transfer out of that account, but apparently they'll only wire transfer to an account if they have a void cheque on file for that account, I doubt Tesla would have provided me with that.
 
Last edited:

Ocelot

Member
Jul 2, 2012
873
1,035
Canada
I feel your pain ... I use Royal Bank Direct Investing which offers 1 day no fee journalling. You still have to own the right dual listed equities (i.e. RBC, AAPL etc). I never hit the $25000/day problem with RBC. My total delay, since I already owned the dual listed equities was about three days to journal, sell and transfer cash out.

First I have heard of 'journaling'. I am surprised..(not really) o one mentioned it to me when I phoned RBC Direct Investing who had charged me a ridiculous sum to convert american to canadian funds (something like 3 per cent on top of what excahnge was). They noted..'well everyone does it'. they then sold off all my stocks in my account (was on margin) without even telling me as it was overdrawn because of the charge. I could of easily transferred money from a different account to settle my margin debt. oh well, sorry to derail, just had to vent. good luck green1...personally i find all banks, are like the cable/internet companies. they seem fine, until something goes wrong, then it is nothing but frustration.
 

green1

Active Member
Mar 25, 2014
4,548
1,123
Calgary, Alberta, Canada
First I have heard of 'journaling'. I am surprised..(not really) o one mentioned it to me when I phoned RBC Direct Investing who had charged me a ridiculous sum to convert american to canadian funds (something like 3 per cent on top of what excahnge was). They noted..'well everyone does it'. they then sold off all my stocks in my account (was on margin) without even telling me as it was overdrawn because of the charge. I could of easily transferred money from a different account to settle my margin debt. oh well, sorry to derail, just had to vent. good luck green1...personally i find all banks, are like the cable/internet companies. they seem fine, until something goes wrong, then it is nothing but frustration.
No bank will ever tell you about journaling stocks over, it would eat in to their profits heavily, but that said, most of them will do it because it's hard to say that you can't sell your dual listed stock on the other exchange, after all, the stock is supposed to be a part of the company, not a part of the exchange. In my case it allowed me to save several thousand dollars in exchange fees at the cost of 3 days of time.
 

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