FEDERAL RESERVE NOTIFIES ALL BANKS
tommyrusty7
Posts: 2,127 ✭✭✭✭
That they can only order 1 box of coins per week until further notice.
I SAW THE MEMO AT A Wells Fargo BANK.
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Comments
Most banks get coin boxes from a armored car company’s
That is true but if you are looking for W quarters you won't be getting any.
Fellow coin roll hunters. Please provide status in your state. I live in Maryland and this is news to me. I had no problems today. tommyrusty thank you for the information
The manager of that Wells Fargo says this is the first time she has seen that in 40 years of banking.
Interesting.
Did they cut production, or is it just an issue with coins not cycling back through due to a retail slowdown?
I am thinking COVID-19 and possible staff shortages at the mints? I would think demand for coins would be down due to businesses being closed down.
No disrespect to anyone but there has to be more to the story
First, as suggested previously, I am not aware that banks ordered from the fed directly. Second, one box per week would never come close to meeting commercial customer demands.
One ballistic nylon bag of tens of thousands of coins per bank? One box of coins per private customer? Maybe, I guess.
That is exactly what theme says. I saw it myself.
On the subject of demand, my state and all commercial businesses I’ve used in past 2 months within it are actively discouraging the use of paper/metallic currency. Demand must still be present but I wonder if a reduction somehow alters the economics of moving coins around.
Yes, I agree that demand must be down, but I would think the suppliers would then be swimming in coin.
Plus, I still don't get the connection between the fed and coins. I believe the armored car and coin processing companies like brinks, nf string, Loomis, etc get their coins from banks (loose), Coinstar, the mint, etc.
Yes that's is where they get them but when they run out they have to get them from somewhere. The rest of the w's could get put in stock now while they keep adding to the ones they have in stock and many may not get into circulation this year.
Don't quote me but I was told banks have the option to order from the Fed or Brinks/Loomis etc.
They pay more for the order & delivery from the Fed so most banks use an armored service.
Most armored services will not have a supply problem because they roll what they pick up from circulation.
I had one Wells Fargo branch tell me they will only sell coins to business accounts because collectors have been
costing them too much money. The other Wells branches in my area don't have a problem with it.
One CU in my area put an out of order sign on their coin counter, it works fine they are just tired of over use.
Maybe check a branch in the next town over and see if you get the same story.
I went to my bank today to do my banking ... they know me as a roll hunter going through ordered boxes of coin every week. So they asked me if I would sell them back some of the boxes of coins due to a shortage.
Is that crazy or what?
If banks acquire coins from the Fed, Brinks, etc at face value and "sell" them at face value where does the profit come from?
Does the Fed pay face value to the U. S. mint for them?
Your pocket!
I'll have to check when I pick mine up this week from Mechanic's Bank (formerly Rabobank). A couple of weeks ago my Credit Union (Golden 1) was extremely happy when I brought in $500.00 worth of quarters. They were completely out.
I think there is a small svc fee when they buy the huge bags f4om the mint, but in any case banks pay a fee to order rolled coin or to return loose coin or customer wrapped rolls. That's why they are sometimes a little hostile to roll searchers.
While there may be a paper transaction for accounting purposes the FED doesn't buy them, they distribute them. Armored carriers charge a fee for what they deliver and for the delivery.
Reckless faith in the dollar's strength is reckless. Tariff proposals have demonstrated this.
Hit four Wells Fargos today. Was informed by one of the tellers that my normal pickup of three boxes of quarters was being reduced to one a week because of a Federal Reserve directive. Hit a total of twelve WF's a week, will likely be hearing more of the same story.
I agree most boxed coins are simply recycled and handled strictly by armored carriers. I do know they turn to the Fed branch bank for new coins periodically which injects new coins into the system. The only reason I can think the FED would tell banks to limit what they give out would be because with bank lobbies closed the armored carriers are not getting the input of used coinage to re-roll.
This may have led to an increase on the demand they are putting on the FED branch banks for new coins and the FED sees an increasing threat to its supply. Supporting this theory is the fact that I have seen an increase in the number of boxes of new coins that obviously had to come from the FED. Unfortunately many of those boxes of new coins were not of the coins in the W series and some of the ones that were 2019-2020 quarters contained no Ws at all.
Reckless faith in the dollar's strength is reckless. Tariff proposals have demonstrated this.
On the other hand it tells me the carriers are putting an unprecedented demand on the FED branch banks for new coins. While one may be limited by how many boxes he can pick up at the local bank, sounds like it increases his odds for a box of new quarters.
Reckless faith in the dollar's strength is reckless. Tariff proposals have demonstrated this.
OK that makes more sense. The bank is limiting customers to one box per week. Not the fed limiting banks to one box per week.
Interesting... seems that areas of the economy one would not think of, are getting hit by this quarantine issue....I would not have expected this issue, especially since all the big markets and outlets are still open and doing a booming business.... Cheers, RickO
I believe that banks can get 2200 pound blister bags from the mint (if they have the capability) otherwise Brinks Strand and others get the blister bags and then they wrap them . they deliver to the banks and charge the banks a fee for the wrapping and delivery.. Banks have to pay over face to get coins!
How many of you think Brinks works for nothing?
I agree with you 100%.
I tend to avoid commercial banks for getting coins to sift through, I get mine from the credit union where they are skinflints like me and get it all over the counter and no ordering from Brinks, BoA etc. They have coin machines but some people, mostly older refuse to use them. That's okay though. Have literally gotten hundreds of rolls of wheats that came over the counter. But I buy their coin machine bags also and sift through for wheats, IHC's and Canajuns.
Well I did my part ...
FROM RUTERS
Americans face new coranavirus challenge: A shortage of coins
By Ann Saphir 22 mins ago
Banks across the United States are facing a shortage of coins during coronavirus crisis, prompting the U.S. Federal Reserve to ration distribution and work with the U.S. Mint to boost supply.
With the partial closure of the economy amid the coronavirus, "the flow of coins through the economy has kind of stopped," Federal Reserve Chair Jerome Powell told the House Financial Services Committee.
Making matters worse, the U.S. Mint has decreased production of coin because of measures put in place to protect its employees.
"We are working with the Mint and the Reserve Banks and as the economy reopens we are seeing coins beginning to move around again," Powell said. He made the remarks in response to a question from Tennessee Congressman John Rose, who said a bank in his district told him it would run out of coins by the end of the week because the Fed was only sending a portion of its usual order of coins.
"We all don't want to wake up to headlines in the near future such as 'Banks run out of money,'" he said. Banks "don't know what to tell their customers."
Powell said he was well aware of the issue and believed it would be temporary. "We feel like we are making progress," Powell said.
The Fed on Monday told banks that it is working with the Mint to increase supply but that until the shortage can be cured it will limit the number of pennies, nickels, dimes and quarters it sends to them "to ensure a fair and equitable distribution of coin inventory." Allocations will be based on banks' historical patterns of coin orders, it said
@HATTRICK
Excellent read. Thank you.
Jimnight,
You are welcome. I have learned a lot from the forum and I am always glad to share when I come across some useful information. I don't post a lot, however I read on a regular basis.
https://www.cnbc.com/2020/06/17/got-change-theres-a-coin-shortage-because-of-coronavirus-stopping-the-flow-of-physical-currency.html
Federal Reserve Chairman Jerome Powell told Congress on Wednesday that the circulation of physical coinage ground to a halt amid the coronavirus outbreak but that the central bank is working to fix the flow.
The topic came to light after Rep. John Rose, R-Tenn., said banks in Tennessee are reporting that they’re receiving smaller-than-usual sums of coinage each week. Rose asked Powell if the central bank was aware of any shortages in the production and distribution of currency, and if there are plans to boost the allocations to their usual levels.
“What’s happened is, with the partial closure of the economy, the flow of coins through the economy has ... kind of stopped. The places where you’d go to give your coins and get credit ... those have not been working,” Powell said.
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
I have a pile I am waiting to cash in.
Whether they want to admit it or not, they do need us to cash in our coins.
Spoke with banker buddy today who saw the FED's four sentence message to all banks. Translation: FED says flubug has interrupted supply chain of coinage. Starting this past Monday FED began allocating available inventories. Local banks may not receive orders are partial orders. Banks may need to roll loose coins to help fill the gap.
He pointed out that this applies to coins ordered directly from Federal Reserve banks and its branches. These new coins are supplied to the FED by the US Mint. He states that banks rarely order new coins directly from the FED and that normally their inventory is rotated in and out of their bank via armored carrier services. It is cheaper and more convenient to use the full service carriers who even reload their ATMS in most cases. These carriers pick up loose coins and re-roll/box them to re-supply the banks. Occasionally it is the carriers who will go to FED banks and get some of the mint's new coins to replenish their coin supply.
Banker buddy claims that local branch banks are assuming this means there will be an overall coin shortage and are over reacting with what they disperse in quantity. He claims that as long as the carriers continue recycling the old stuff locally the only coin supply that COULD be affected is new coins that the FED releases (on behalf of the US Mint) into the money system. Keep in mind that the mint released 1.85 billion quarters into circulation in 2019 alone.
Made my Wednesday bank run for quarter boxes and was told by two banks that my weekly order of three boxes would be limited to one box until further notice. Another bank put a temporary halt on my weekly two box order. Three other banks were business as usual with an exchange of an open box still in carrier rolls (unopened rolls because the enders indicated a box of recycled quarters). The other three Wednesday banks provided a box but warned me the "FED says there is gonna be a coin shortage." Each branch bank is applying their own interpretation of the FED message.
Good news is that one of the boxes picked up today was a box of 2020 Weir Farms. Found 66 Samoa W batcoins.
Reckless faith in the dollar's strength is reckless. Tariff proposals have demonstrated this.
Here is the directive, straight from the Federal Reserve:
https://frbservices.org/news/communications/061120-strategic-allocation-of-coin-inventories.html
Pretty hard to run a bank with no coins to give out, now that is crazy!
Time for fractionals......or maybe scrip !
Could you imagine ?
COVID19 tokens!
looks like they are addressing only coins supplied to the market by the Federal Reserve and not coins recycled through the system by banks and armored carriers.
Here's the part of the Fed directive that caught my eye: "Depository institutions also can help replenish inventories by removing barriers to consumer deposits of loose and rolled coins." I'm sitting on about $11K in loose quarters from my roll searching that I have been taking to the credit union Coinstar in small lots of about $250 a week. Since they provide free coinstar use at their expense I have been trying to stay under the radar as one branch told be I could not be abusing their free service. Maybe a good time to ask the manager if I can bring them in.
Reckless faith in the dollar's strength is reckless. Tariff proposals have demonstrated this.
Bitcoins and visa cards, I'm applying for a new card and requesting a $trillion dollar limit! Who needs coins in 2020? Barbaric relics lol
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
I wonder if the Fed needs our quarters to pay off the nat'l debt?
Where are all the people who say they don't use money anymore? Bueller...Bueller?
I just use one credit union and they don't care how much I put in at a time. I have put in $8000 a couple of times. They want my business.
Here is the official notification we received today. Not sure how this will look....its a screenshot from a pdf. Apologize in advance if its unreadable!
Based upon nothing but idle speculation, I wonder if some retailers are requesting only new coins from their banks because they would not be contaminated with COVID?
I remember reading long ago that some retailer in London (possibly Harrod's?) had a tradition of only having new coins and bills in their cash registers as a matter of prestige. They had a deal with their bank to keep them supplied with them. You could spend used coins and bills, of course, but they would not give them back out in change.
Has anybody checked with CoinStar to see if their handle is down?
I bet you can still get all the dollar coins you could possibly want
Collector, occasional seller
I still smell a rat somewhere in the process.
Where money is concerned I trust no one
NO ONE !!!!
Just got confirmation from my bank (Suntrust) that this is going on. I had 2 boxes of halves and a box of nickels and pennies that were supposed to come in today. And they just told me. What do I do now? Hit up Laundromat owners? lol
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Yes! lol. There are a few banks in my area that have hundreds of them, but i'm only interested in Sacagaweas and they're not going to go through them. Most of the rolls are marked anyways.
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Unfortunately, when conditions improve the FED will not put out another message that says "all clear, give derryb all the boxes he asks for."
Local banks will continue rationing until who knows when. . .
Reckless faith in the dollar's strength is reckless. Tariff proposals have demonstrated this.
You can cash in coins via Coinstar, but none of my several financial institutions have lobby hours aside from pre-planned appointments. So nothing in or out. CRH has been a no-go, not really care right now anyway thing for me.