Henan Bank decides to use citizens money for investment

[Majestic-milf]

 Imagine a situation where you have worked for your money and put in the bank but at the end of the day can't access them simply because your government decided that it would be the best fund to cater for development of the country!! That's the rude awakening citizens of the Henan village of China got.
 

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In a bid to scare protesters away, People's Liberation Army tanks were put in front of the banks as the protesters were reluctant to leave the bank premises, furious that the bank had decided to turn their savings to "government investment".
 The use of tanks is quite similar to the case of the June 4, 1984 incidence at Tiananwen Square where students where killed while protesting for better freedom and democracy.
With such a big issue trailing the government and banks, it would be safe to say that they have nothing to offer and are no longer trustworthy and once this is lost, citizens tend to look for other sources.
 
 This was probably what Satoshi saw and decided to create Bitcoin, because the integrity of banks will be compromised as technology evolved and they  will try to cover all their tracks.
 With China not in support of Bitcoin hence individuals would have switched over to it, so how do they manage to guard against such an incidence repeating itself? https://www.india.com/business/video-china-deploys-tanks-after-top-bank-declares-peoples-money-investment-products-5526988/

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[jackg]

Imagine a situation where you have worked for your money and put in the bank but at the end of the day can't access them simply because your government decided that it would be the best fund to cater for development of the country!! That's the rude awakening citizens of the Henan village of China got.

This is how most custodians of any assets make their money - they lend out your assets to others.

It's not limited to banking as it's done by most stock exchanges and billions too.


The tanks are probably more unique to China but a lot of countries have militarised police.

[Charles-Tim]

Ongoing discussion about this since two days ago on this forum:

China banka scams shows importance of financial freedom with bitcoin...

You can lock this thread and post on the thread created about this same issue of Henan Bank and how they do not release customers money in bank that led to protest.

[aysg76]

This is how most custodians of any assets make their money - they lend out your assets to others.

They make profits out of your funds only and in case of any issue they can even seize your funds also and this is case with CEX in crypto market also and it's alarm for us to be safe.

The tanks are probably more unique to China but a lot of countries have militarised police.

China has past habit of suppressing these protest through tanks and Tiananmen Square is still remembered by world.

Ongoing discussion about this since two days ago on this forum:

You can lock this thread and post on the thread created about this same issue of Henan Bank and how they do not release customers money in bank that led to protest.

Yeah we need to have the discussion in single thread only to have the different opinions from members so yes you can lock this topic and contribute in the thread mentioned above.

[mayfair_coin]

Henan bank crisis came to know in mid april 2022 when three rural banks in china's Henan province stopped online transactions and freeze their account. Now Chinese's tank are scaring people to protest and main reason for this is greed and corruption

[Synchronice]

This was probably what Satoshi saw and decided to create Bitcoin, because the integrity of banks will be compromised as technology evolved and they  will try to cover all their tracks.

That was probably why Satoshi created bitcoin but seems he missed one thing, it was gonna turn into centralized from decentralized. Some people like Elon Musk and companies like Binance have a huge influence on the bitcoin and the crypto market. When people trade and leave their currencies into exchanges and e-wallets, that old idea behind bitcoin is already broken.

Every time, the governments have higher control over people and society isn't going to resist. People happily use devices like Alexa in their house, pirated software, OS that is full of malware and trojans.

[avikz]

That's why Bank's dominance on the economy should end. The similar situation happened in India as well where the promoters of the bank lent money to a loss making company and the company couldn't pay off their loan. So the government had to step in and they are still trying to sell off the assets of the bank so that they can pay the depositors back.

This is the story of banks almost everywhere in the world. That certainly shows the importance of having the control over your own money!

[Sanitough]

That's why Bank's dominance on the economy should end. The similar situation happened in India as well where the promoters of the bank lent money to a loss making company and the company couldn't pay off their loan. So the government had to step in and they are still trying to sell off the assets of the bank so that they can pay the depositors back.

This is the story of banks almost everywhere in the world. That certainly shows the importance of having the control over your own money!

Unfortunately, majority of the people still trust banks despite of this sad reality. They chose to go along with the centralized banks and entrust their life’s savings. They fail to realize that they are giving the banks to have full rights on their entire funds, leaving them clueless about the future of their money. Unlike bitcoin, you are the sole bank of your own money.

[Fortify]

Imagine a situation where you have worked for your money and put in the bank but at the end of the day can't access them simply because your government decided that it would be the best fund to cater for development of the country!! That's the rude awakening citizens of the Henan village of China got.
 

upload pictures free

In a bid to scare protesters away, People's Liberation Army tanks were put in front of the banks as the protesters were reluctant to leave the bank premises, furious that the bank had decided to turn their savings to "government investment".
 The use of tanks is quite similar to the case of the June 4, 1984 incidence at Tiananwen Square where students where killed while protesting for better freedom and democracy.
With such a big issue trailing the government and banks, it would be safe to say that they have nothing to offer and are no longer trustworthy and once this is lost, citizens tend to look for other sources.
 
 This was probably what Satoshi saw and decided to create Bitcoin, because the integrity of banks will be compromised as technology evolved and they  will try to cover all their tracks.
 With China not in support of Bitcoin hence individuals would have switched over to it, so how do they manage to guard against such an incidence repeating itself? https://www.india.com/business/video-china-deploys-tanks-after-top-bank-declares-peoples-money-investment-products-5526988/

It is very disturbing to see that the Chinese leadership have never learned and are infact reverting back to much worse ways of handling their citizens than we saw before Xi Jinping. After first claiming that the savings products of these people were "investments" (which they may have been but they were marketed in a very manipulative way) they were starting to see a bankrun in other banks, which would have been even more devastating to the financial system of China and have now backtracked slightly by offering to cover, from state coffers, a certain proportion of the billions that were stolen by the individuals in charge of this company.

[livingfree]

I guess if they've been vocal and has said this earlier to their customers, there could be a clarity on where the money went and these people will understand how their money was gone and will take time for its return.

Although, it's the usual thing that banks do for their depositors money but the sad part is that this is the people's money and they need it. Why they don't have a plan B on how they'll solve this.

They can do this through talks but well, this is China.

[darkangel11]

People's Liberation Army tanks were put in front of the banks as the protesters were reluctant to leave the bank premises,

Oh the irony... People's Liberation Army is liberating people from the burden of having money. That wealth must've been too heavy to bear for these poor folks

Henan bank crisis came to know in mid april 2022 when three rural banks in china's Henan province stopped online transactions and freeze their account. Now Chinese's tank are scaring people to protest and main reason for this is greed and corruption

Are they still protecting the bank 24/7? How much of "people's money" does this protection cost?

This is so fucked up. These people help to finance the army with their taxes. Now the army is helping to steal the rest of their money along with the bank that was there to protect their savings.

[Fatunad]

That's why Bank's dominance on the economy should end. The similar situation happened in India as well where the promoters of the bank lent money to a loss making company and the company couldn't pay off their loan. So the government had to step in and they are still trying to sell off the assets of the bank so that they can pay the depositors back.

This is the story of banks almost everywhere in the world. That certainly shows the importance of having the control over your own money!

Unfortunately, majority of the people still trust banks despite of this sad reality. They chose to go along with the centralized banks and entrust their life’s savings. They fail to realize that they are giving the banks to have full rights on their entire funds, leaving them clueless about the future of their money. Unlike bitcoin, you are the sole bank of your own money.

Yes, we could say that Bitcoin is really something ideal when it comes to future aspect but we know that not all people are really that fully aware on what it is and of course
they would most likely be sticking into something that they've been using through ages even though they are aware on that sad reality about banks and how they do make out
business but since there are no other place for them to store their fiat then we do really ending up on relying on these things despite of such issue or something like that.
We dont really have the full control and that risk would be always attached to it thats why we should really be wise on making decisions.

[Johnyz]

I guess if they've been vocal and has said this earlier to their customers, there could be a clarity on where the money went and these people will understand how their money was gone and will take time for its return.

Although, it's the usual thing that banks do for their depositors money but the sad part is that this is the people's money and they need it. Why they don't have a plan B on how they'll solve this.

They can do this through talks but well, this is China.

Banks always uses the money of their depositor either to reinvest it or to use it for lending purposes but the situation of this bank in China is alarming, why their central banks allow this to happen where in fact the regulations with the bank is very strict. Though this situation also happen in my country before, where the bank fully invested on a fixed asset which turns out to be a bad investment and force them to file a bankruptcy and stop the operation, although the depositor still able to get their funds after the help of the government.

[AmoreJaz]

I guess if they've been vocal and has said this earlier to their customers, there could be a clarity on where the money went and these people will understand how their money was gone and will take time for its return.

Although, it's the usual thing that banks do for their depositors money but the sad part is that this is the people's money and they need it. Why they don't have a plan B on how they'll solve this.

They can do this through talks but well, this is China.

Banks always uses the money of their depositor either to reinvest it or to use it for lending purposes but the situation of this bank in China is alarming, why their central banks allow this to happen where in fact the regulations with the bank is very strict. Though this situation also happen in my country before, where the bank fully invested on a fixed asset which turns out to be a bad investment and force them to file a bankruptcy and stop the operation, although the depositor still able to get their funds after the help of the government.

banks indeed invest the funds of their depositors, however, they have several strategies to take care of the funds not to screw the money of their clients. and also, the funds should always be available to their clients. usually, they have certain allotment that goes to their investments. now, if the bank placed all the money to their investments, that's their responsibility to answer their clients. if the bank is having problem like what the situation in henan, then the depositor should cash out his deposits once they allow their clients to get their money. and just look for other saving options.

[Zlantann]

Henan Bank issue is a national disgrace. The Chinese bank regulating failed in their responsibility to prevent scam and protect the interest of depositors. The bank did not really use the money for any profitable investment but it is generally believed that the officials engaged in some corrupt practice. Currently, the Chinese government is investigating the officials of the bank and depositors have started receiving their money back. Bitcoin education is key for they adoption of these priceless digital currency. If people know the benefits or opportunities Bitcoin offers, these traditional banks would become obsolete.     

[Rruchi man]

The bank did not really use the money for any profitable investment but it is generally believed that the officials engaged in some corrupt practice.

I suspect more of corrupt practices than failed investments because it is normal and general knowledge that these banks use our money for investment purposes most times forex trading.

Currently, the Chinese government is investigating the officials of the bank and depositors have started receiving their money back.

It is a good response from the Chinese government quickly responding to refunding citizens money because money issues are very delicate like I would always say. The Chinese government frowns heavily at corruption and the bank officials if found guilty will pay a heavy penalty for it.

Regardless of the fact that the Chinese government is not responding to refund in people's money this incidence country boots do the arguments the need for you to be your own bank and exercise more of financial independence. Cryptocurrency is the future!

[Darker45]

This is the problem with custodial services in finance. You trust them with your hard-earned money, but not only are they not keeping them, they are actually risking them. They are using their clients' money in order to earn. In the case of failure and they grow insolvent, they would implement measures such as freezing withdrawals. In case they're successful, they won't share with their clients their profit other than the promised interest which is even lower than the inflation rate. In case of bankruptcy, the insurance will pay their clients after years.

But before criticizing the banks for this, be mindful that this is also present in crypto.

If you don't like the banks, don't just Bitcoin; be your own bank!

[Kakmakr]

This is not the first time that something like this happened.... there are several incidents where Banks worked with government agencies to raid people's safe deposit boxes... and where they confiscated the content of these safe deposit boxes. 

So, you think it can only happen in corrupt 3rd world countries? Think again.... https://www.forbes.com/sites/steveforbes/2013/03/25/can-a-cyprus-like-seizure-of-your-money-happen-here/?sh=285b65c42506

[Baofeng]

Not the first, but the main issue is that it happened in China, I mean supposedly in top as far as world economy goes. And what is scary is that it seems this has the backing of Chinese government?

I mean it's a display of force, obviously, and how do the Henan Bank did it? they did just call the military and said "hey we need tanks here to disperse the people because we have used their money for other investment"?

[Oilacris]

I guess if they've been vocal and has said this earlier to their customers, there could be a clarity on where the money went and these people will understand how their money was gone and will take time for its return.

Although, it's the usual thing that banks do for their depositors money but the sad part is that this is the people's money and they need it. Why they don't have a plan B on how they'll solve this.

They can do this through talks but well, this is China.

Banks always uses the money of their depositor either to reinvest it or to use it for lending purposes but the situation of this bank in China is alarming, why their central banks allow this to happen where in fact the regulations with the bank is very strict. Though this situation also happen in my country before, where the bank fully invested on a fixed asset which turns out to be a bad investment and force them to file a bankruptcy and stop the operation, although the depositor still able to get their funds after the help of the government.

banks indeed invest the funds of their depositors, however, they have several strategies to take care of the funds not to screw the money of their clients. and also, the funds should always be available to their clients. usually, they have certain allotment that goes to their investments. now, if the bank placed all the money to their investments, that's their responsibility to answer their clients. if the bank is having problem like what the situation in henan, then the depositor should cash out his deposits once they allow their clients to get their money. and just look for other saving options.

Yes, they do tend to repay which is indeed an ethical thing to be done.

Henan: China to repay customers after mass bank protests

This is the big cons on using up centralized services or trusting up certain institution specially when it comes to your own money.
There's always a tendency when it comes seizure or whatever actions they are tending to make which as a depositor ending up there's
nothing you could do about it.