Tiny insight into US banking system

A couple that we know well, visiting up last evening. They currently live in a mountain ski sresort area in mid-British Columbia. There are some Americans who have bought condos there. She is a real estate agent.

We were all stunned to learn that alot of the Americans she deals with cannot get foreign currency exchange immediately to put down payment for a new home in Canada. Most deal with banks that are regional or state banks. So there's a more complicated and time-consuming process to get that certified cheque in Canadian dollars by using Thomas Cook as the exchange firm.

Hence each state or regional base bank has different policies and processes because each state may have different laws. Ridiculous in today's global economy.

This does not happen to Canadians..since our banks in Canada by law, are federally regulated according to federal law. I am aware of this since I had to deal with legislation for several employers which were organizations in the legal sector.

Any other insight here?

I do not understand because payments need not be in the form of certified cheques. Buyers can instruct their banks to make CHAPS payments directly to the seller.

One would need to ask some American lawyers on this. I got the impression it was the inability for some of these state/regional American banks unable to direct foreign currency money payment for an American citizen in large. Not sure.

What happened was that the American had to ask their American bank to go to Thomas Cook Currency exchange to convert the money to Canadian dollars and then from TC back to bank.

But it sounded abit inefficient.

Perhaps our American folks here can confirm:

Can you walk into any of your state or regional U.S. banks and get straight Canadian cash? I am not talking about national banks in the U.S.

I can go into any of our national Canadian banks (we have no regional/provincial based banks) and ask for hard American cash. No service charges. I get it immediately in my hand, especially if I am their regular bank customer. And I do. I use small U.S. cash for muffins, coffee when visiting the U.S.

Even better 1-2 of Canadian banks in Toronto, you go to an ATM machine that specifically dispenses only U.S. cash and bypass currency conversion service charges if one is their regular customer. Only currency conversion, that's all.

It is located in major business section in Toronto where there are alot of business travellers. I used to work in the district and passed by the machine nearly daily.

This same Canadian bank is penetrating into the U.S. now with more branches.

National banks with 1 set of its own respective policies with strong federal law oversight, makes alot more sense and is a whole lot less confusing for the financial marketplace for consumers who need to assess options and want long-term, stable relationship with their bank. Especially when people are mobile these days where they live across state/provincial borders during their lifetime, etc.

Lola: What is CHAPS? A money wire/electronic money transfer?

Dunce me suddenly realizes that there is a resource..within my own family..if I look beyond my own nose! One of my brothers-in-law is a securities lawyer for the Ontario Securities Commission, a regulatory government body. (it's something like U.S. SEC. Canada does not have 1 national securities regulatory body --yet.) He should know the basic difference on certain banking practices/strutures between 2 countries. Or maybe not. Sometimes a person's knowledge becomes highly specialized that they don't know the general stuff.

A bit off point but see:
http://www.american.com/archive/2010/feb...-banking-system Look at point #7.

Yep. Clearing House Automated Payment System.
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/42/42_automated.htm