[Lazamataz]

Bye Bye Citibank. There go ALL of your depositers.

[silverleaf]

Citi is citing a federal regulation - that would apply to all banks

[HD1200]

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.

[rwfromkansas]

Wow.

So glad I have no accounts with this horrible bank.

[ding_dong_daddy_from_dumas]

I wonder if this is supposed to prevent something like what happened in Sept. 2008 ($500B taken out in 2 hours).

[TomGuy]

Bye Bye Citibank. There go ALL of your depositers.

Actually, that kind of provision has existed for a long time.

I have had bank accounts that had a provision where they could limit withdrawals, at their option.

Check the fine print in your current bank terms. You might find a similar provision in it.

[andy58-in-nh]

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.

[Forgiven_Sinner]

“Bye Bye Citibank. There go ALL of your depositers.”

Correct. A stupider and more wrong headed policy is difficult to imagine—Oh! Wait! I just remember Obama’s health care program!