Citigroup May Refuse To Allow Withdrawals

[tsptalk]

Citigroup Warns Customers It May Refuse To Allow Withdrawals (http://www.businessinsider.com/citigroup-warns-customers-it-may-refuse-to-allow-withdrawals-2010-2)

"Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change", Citigroup said on statements received by customers all over the country."

More (http://www.businessinsider.com/citigroup-warns-customers-it-may-refuse-to-allow-withdrawals-2010-2)

[350zCommTech]

CITI about to go BOOM?:D

[Warrenlm]

Denninger is on this too.
http://www.market-ticker.org/archives/1985-Citibank-No-More-DDA-Accounts.html

[James48843]

Interesting.

I guess maybe Citi thinks that they can leave town in seven days and miss the "Torch and Pitchfork" crowd?

I thought that was why we poured all that tax-payer money into Citibank- to keep it liquid.

[350zCommTech]

Last year they jacked up my interest for no reason. Not a big deal as I pay it off every month.

But if you bank with Citibank, it might be wise to move your money now.

[350zCommTech]

Interesting.

I guess maybe Citi thinks that they can leave town in seven days and miss the "Torch and Pitchfork" crowd?

I thought that was why we poured all that tax-payer money into Citibank- to keep it liquid.

Maybe someday we'll find out the truth and how taxpayers got screwed.

[James48843]

Guess where 8 BILLION of that 45 billion in TARP money to Citibank ended up? You know- that money that was meant to ensure liquidity so that Americans could continue to keep small business going....

The eight billion went to.....Dubai.
http://www.dailykos.com/story/2009/12/1/809596/-How-Citibank-TARP-funds-wound-up-in-Dubai

[350zCommTech]

Guess where 8 BILLION of that 45 billion in TARP money to Citibank ended up? You know- that money that was meant to ensure liquidity so that Americans could continue to keep small business going....

The eight billion went to.....Dubai.
http://www.dailykos.com/story/2009/12/1/809596/-How-Citibank-TARP-funds-wound-up-in-Dubai

Great find James.

All the more reason to pull your money from Citibank. I'm serious. If enough people do it, they will have to allow Citibank to fail.

[Bullitt]

I love it. I absolutely love it. Meanwhile Goldman Sachs is brainwashing outsiders with their prediction that the S&P will go to 1300 in 2010.

[nnuut]

:confused: Old news, but :confused:
Citi Warns of Withdrawal Gate

http://www.futureofcapitalism.com/2010/02/citi-warns-of-withdrawal-gate

Seen on a recent Citibank statement: "Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change."
Whoa. Is this an April Fool's joke? A contingency plan to defend against the idea (http://richardwiseman.wordpress.com/2010/02/17/should-we-bring-down-the-naughty-bank/) of what "would happen if thousands of customers pledge to withdraw their money from the bank on a certain day, unless the bonuses are capped?" A strategem cooked up by Citi's new shareholders from the hedge fund industry (http://www.bloomberg.com/apps/news?pid=20601087&sid=abdG5GkMSWfA&pos=5), an industry in which such withdrawal gates are common (http://www.futureofcapitalism.com/2010/01/de-shaws-withdrawal-gate)? An idea backed by Citi's big shareholder, Uncle Sam, or one of its regulators, Sheila Bair?
I called Citi about it and they said the warning applies only to customers in Texas and that the notification had been mistakenly included on statements nationwide. Whatever the explanation, it doesn't exactly inspire confidence in Citi. I've got nothing against Citi as a general matter -- I have friends who work there, and know some account holders who are generally satisfied customers. But it's hard to believe a bank would be sending out a notice like that on its statements.
[B]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."
http://www.futureofcapitalism.com/2010/02/citi-warns-of-withdrawal-gate

[James48843]

:confused: Old news, but :confused:
Citi Warns of Withdrawal Gate

http://www.futureofcapitalism.com/2010/02/citi-warns-of-withdrawal-gate

...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."
http://www.futureofcapitalism.com/2010/02/citi-warns-of-withdrawal-gate


Yeh. Right.

And I have some very nice ocean-front property in Wyoming for sale too..

[Show-me]

True or false, you do not implement a plan like that unless there is some serious risk that it will happen.

[Handballer]

I love it. I absolutely love it. Meanwhile Goldman Sachs is brainwashing outsiders with their prediction that the S&P will go to 1300 in 2010.

I suppose Birchtree is one of them.:blink:

[Silverbird]

:pWelcome to the Hotel Citigroupi!
You can check out anything you want
But you can never leave.

[Viva_La_Migra]

Guess where 8 BILLION of that 45 billion in TARP money to Citibank ended up? You know- that money that was meant to ensure liquidity so that Americans could continue to keep small business going....

The eight billion went to.....Dubai.
http://www.dailykos.com/story/2009/12/1/809596/-How-Citibank-TARP-funds-wound-up-in-Dubai
Talk about Troubled Assets! Do we at least own the United States on the Oqyana Islands, or is that owned by China too?:blink: