Posted on 02/22/2010 6:24:54 AM PST by Tulsa Ramjet
The image of banks locking their doors to keep customers from making withdrawals during a bank run is what immediately came to mind when we heard that Citigroup was telling customers it has the right to prevent any withdrawals from checking accounts for seven days.
"Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts.
(Excerpt) Read more at businessinsider.com ...
Bye Bye Citibank. There go ALL of your depositers.
are they programming the ATM’s to issue “IOU’s”?
Citi is citing a federal regulation - that would apply to all banks
Isn’t that what a checking account is for? After all, writing a check is making a withdrawal.
Let’s see, now...
The whole eight years that Bush was in office, he had 53 banks go belly-up.
In one year and 1 month, Obama has had 158 banks fail under his leadership. That is one bank shy of tripling Bush’s 8 year total.
So, yes. I would be VERY concerned about a bank that wants a 7 day notice to close out my account...
Cheers
Update: Citibank has now released the following statement by way of explanation: "When Citibank moved to unlimited FDIC coverage in 2009, we had to reclassify many checking accounts to allow for immediate withdrawals in order to ensure all customers qualified for the additional coverage. When we moved back to standard FDIC coverage with most major banks in 2010, Citibank decided to reclassify those accounts back to make them eligible again for promotional incentives. To do so, Federal Reserve Reg D requires these accounts, called NOW accounts, to reserve the right to require a 7-day notice of withdrawal. We recently communicated this technical requirement to our customers. However, we have never exercised this right and have no plans to do so in the future."
I heard Mr. Potter is giving 50 cents on the dollar for Citigroup accounts, what are we waiting for.
SOB...wish I would of read this whole NON ISSUE before I sent it to everyone.
What is the problem? 7 days sounds reasonable to liquidate securities and get the cash from the Feds to pay depositors.
Every wonder just how much cash a bank has on location anymore? Very little. VERY LITTLE.
That will work fine till other banks stop accepting checks written on the no withdrawl accounts.
Thanks for the update.
So, who put the FDIC back in charge of Citibank, now?
Update: Citibank has now released the following statement by way of explanation: “When Citibank moved to unlimited FDIC coverage in 2009, we had to reclassify many checking accounts to allow for immediate withdrawals in order to ensure all customers qualified for the additional coverage. When we moved back to standard FDIC coverage with most major banks in 2010, Citibank decided to reclassify those accounts back to make them eligible again for promotional incentives. To do so, Federal Reserve Reg D requires these accounts, called NOW accounts, to reserve the right to require a 7-day notice of withdrawal. We recently communicated this technical requirement to our customers. However, we have never exercised this right and have no plans to do so in the future.”
Store your wealth in paid off real estate that generates positive cash flow, or in gold and silver.
Were those like money market checking accounts?
There are special rules for checking accounts that draw on investment-type accounts
So just give me the guards' two Glocks, let me take it out in trade on that cute little teller, and we'll call it even.
I prefer blued steel, brass and lead.
Wow.
So glad I have no accounts with this horrible bank.
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