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 ...
I have no idea, I haven’t been following this story. I just found the headline a little on the alarmist side.
It's not, it is printed on my Januaray statement.
Nobody else has apparently had this problem.
It’s just Citi being citi.
Januaray = January...more coffee please
It looks like Vikram Pandit, CEO of Citi, won’t be going on his honeymoon afterall. Hopefully Uncle Billy wont screw up again when making the deposit.
I wonder if this is supposed to prevent something like what happened in Sept. 2008 ($500B taken out in 2 hours).
“Daddy, every time a bell rings another bank gets bailed out.”
That’s really funny, because Citibank has been allowed by the Federal Reserve to go on claiming as “assets” mortgages whose underlying values have plummeted and the repayment of which is utterly speculative. And yet, the bank borrowed billions of dollars in taxpayer money using their phony-baloney valuations as collateral. And then they lend it back out to customers at usurious interest rates (29.9%), while charging them exorbitant fees for ATMs and every other damned thing. Now, they’re changing their Demand Deposit Accounts into something more like NOW accounts, where you have to wait seven days for your own friggin’ money while the bank floats a few more basis points off you. Not to put too fine a point on it, but: screw them.
So it’s a rule but they have no plans to enforce it. I just love rules like that.
Naw. For that you'd have to imprison Soros.
Except that checks can, as longstanding norm, be delayed over a week (”waiting for the check to clear”).
I think the bell is ringing for us all....hold on tight!
On DEPOSITS (not even a withdrawl!) over $5K, my bank holds the d@mn deposit for 5 working days until it’s cleared through their system. So, that’s FIVE FULL DAYS I can’t touch MY money? Hello!?
I sure hope no one in my family is ever kidnapped and I need cash FAST.
‘Um...Mr. Kidnapper? My bank won’t release my million dollars for a few days. Could ya not cut anything off of my family member until my check clears? Thanks.’ *SNORT*
Don’t EVER confuse Laz with the facts. He don’t like that. ;)
could be this “Move your Money” thing the Libs started is getting some traction and is starting to bite them.
Truth is many state banking laws allow for a 7 day notice to withdraw large amounts. (a relative of mine in the business frequently uses this loophole when someone tries to present a large check which they suspect may be fraudelent)
FDIC Failed Bank List through February 19, 2010:
http://www.fdic.gov/bank/individual/failed/banklist.html
More curious is the rule is levied by the government, not the bank. The gov’t told the bank “tell your customers you might not pay up for 7 days”.
My current guess is it’s to slow/limit hits on FDIC payouts should there be a run on banks.
It sounds like in addition to incompetent lenders and portfolio managers, Citibank also has an incompetent communication and public relations department.
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