I'll try to keep this, my tale of woe, as brief as possible. It is in response to Hartley's article.
Treasury Finalizes Flawed UIGEA Regulations...By Hartley Henderson I think it is a relevent example of a banking "due diligence" nightmare, though not gambling related.
My daughter's car went TU and she needed a replacement ASAP. She has 2k savings as a down payment. We ended up at a small (one guy) lot where I have purchased 3 or 4 used trucks in the past. About all he has available is a car she is already smitten with, a couple of K over her budget. He is cash only guy, but works out a payment plan with her, as she is trying to establish credit.
I cash out a money market account my Dad set up for her years ago, where I am named the custodian, and a few days later we are at the bank I have been with 25 years. My household checking account is with them as well as a few cd's, Sep IRA and a low limit "emergency" credit card. A new teller says he can't cash the (loomis govt funds) check as he is unfamiliar with "State Street Bank" in Boston. I say fine. I'll deposit it and I'll need a counter check, since I had let my paper check supply dwindle due to the wonders of debit card and online banking. (my fault there) Sorry, no can do as there is only 2K in the checking account. Again I say fine. There is a 3k overdraft "personal loan" associated with this account. He is shaking his head sadly. I ask if Mary is there.. head teller and family friend for many years, but of course she is not. Instead he dashes across the bank to a cublicle supervisor woman, and waits since she is with a customer.
I am starting to sweat getting to the daycare on time, and then to pick up my carless daughter at work. Apparently Grandma sweat looks a lot like suspicious character sweat, because he comes back and says so and so says its too late to call Boston now, but she will clear it tomorrow. I explain that the car lot owner (5 blocks away) is staying open after hours for us to do this deal. He says I can give you the 2000 in your account, even though we have no way of knowing that there aren't outstanding charges pending. He is giving me the "lady I am just doing my job" look I have been getting for the past hour. By now I have no choice but to take the 2k and run.