Citi Warns Customers May Refuse To Allow Withdrawa

[real6]

Citigroup Warns Customers It May Refuse To Allow Withdrawals

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


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. 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.

What's going on? It seems that this is something of an error. The seven day notice policy only applies to customers in Texas, Ira Stoll reports at The Future of Capitalism. It was accidentally included on customer statements nationwide.

"Whatever the explanation, it doesn't exactly inspire confidence in Citi," Stoll writes. "But it's hard to believe a bank would be sending out a notice like that on its statements.''

[romas]

Well perhaps after assessing the overall situation they've realised some shit's coming up.

[real6]

Update: Citigroup Says Feds Ordered 7 Day Restriction On Bank Withdrawals

http://www.prisonplanet.com/citigroup-warns-customers-it-may-refuse-to-allow-withdrawals.html

A new advisory being sent by America’s third largest bank to its account holders has stoked fears that major financial institutions could be preparing for old fashioned bank runs if the economy takes a turn for the worse.

Originally reported by John Carney over at the Business Insider website, Citigroup is sending the following information to customers along with their bank statements.

“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.”

An almost identical advisory to the one being sent out can be read on page 22 of Citbank’s Client Manual effective January 1, 2010, which can be read here from Citibank’s own website.

“We reserve the right to require seven (7) days advance notice before permitting a withdrawal from all checking, savings and money market accounts. We currently do not exercise this right and have not exercised it in the past,” states the manual.

According to the Future of Capitalism blog, Citigroup originally claimed that the warning was only sent nationwide as a result of a mistake, but that the measures do apply to account holders in Texas.

However, in a statement, Citigroup confirmed that they had reserved the right to impose the new 7 day rule on all account holders nationwide, but claimed they had no plans to enforce it. The bank stated that they had been forced to enact the new policy as a result of federal regulations.

“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,” reads a statement released by the bank.

Over the last 18 months, numerous rumors of bank runs, “bank holidays,” and limitations on access to cash at ATM’s have been floating around. Citigroup’s new policy to restrict withdrawals won’t do anything to calm such fears.

As we reported back in 2008, the Federal Deposit Insurance Corp., which guarantees individual accounts up to $100,000, only has about $50 billion to “insure” about $1 trillion in assets across the nation’s financial institutions.

This revelation prompted fears that an accelerating amount of bank closures could absorb FDIC funds and leave holders of money market and traditional savings accounts exposed.

———————————————————

Citigroup Warns Customers It May Refuse To Allow Withdrawals

John Carney
Business Insider
Sunday, February 21, 2010

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.

[real6]

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 of what "would happen if thousands of [bank] 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, an industry in which such withdrawal gates are common? 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.

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."

[real6]

ANYONE WHO WANTS TO SEE THE ORIGINAL CITIGROUP DOCUMENT:

Open page 22 of their Client Manual PDF and read the right column Sections: Withdrawal Refusals & Withdrawal Notice.

https://online.citibank.com/JRS/popups/ao/Client_Manual_20091228.pdf

They say:

[We reserve the right to require seven (7) days advance notice
before permitting a withdrawal from ALL checking, savings and
money market accounts.]

[mark1963]

Citigroup Warns Customers It May Refuse To Allow Withdrawals

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


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. 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.

What's going on? It seems that this is something of an error. The seven day notice policy only applies to customers in Texas, Ira Stoll reports at The Future of Capitalism. It was accidentally included on customer statements nationwide.

"Whatever the explanation, it doesn't exactly inspire confidence in Citi," Stoll writes. "But it's hard to believe a bank would be sending out a notice like that on its statements.''

They are changing the terms of the original contract. Therefore the contract is null and void.

Write back - tell them what they are doing is illegal - and they can go F*CK themselves.

[real6]

anyone who continues to bank with citi deserves what they get. buy gold, silver, guns, and food (including heritage seeds)





I like what these two people said:

Quinny Reply:
February 21st, 2010 at 11:30 pm

This is big. This is a CLEAR signal that all the talk about a “recovery”
is bull. The bank is being drained of cash by people who are losing
their unemployment benefits and are using their savings and retirement
funds to stay afloat.

Reply

Swede1 Reply:
February 22nd, 2010 at 12:40 am

EXACTLY!!!!! keep an eye on your 401 too!…well, it is now a 101. Keep an eye on your 101!

[zero1]

I've seen it speculated that Citi are doing this possibly in anticipation of a bank run, sometime over the course of the next few months.

[real6]

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[real6]

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

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.”

[romas]

I just saw Capitalism a love story by Michael Moore, in it he exposed some documents from Citibank, after careful assessment, they've come to a conclusion that USA is not a democracy, but a plutonomy (http://www.ibtimes.com/articles/20090907/citigroup-2006-americamodern-day-plutonomy.htm) and TPTB literally are the rich and their main fear is peasant revolt.

Also you might want to check out 'Dead Peasant' Insurance Policies in liberal USA xD

[romas]

bump, this is important.

[rhydra]

So if someone buys a house then can't get their money out, starts a struggle with the back to release money, the deal falls though. If this happens enough times the property market then is affected, the biggest market of the lot can then be manipulated. Say someone is on the verge of repossession, the deal falls though this way, the bank can then amass trillions of pounds/dollars worth of property for next to nothing, hold it, then sell it once the economy starts up again. One less reason for leaving a foreclosed house standing.

[the apprentice]

Great post R6 and many thanks for the heads up, top man.

We have seen this hapening of late in Ireland with the Irish National Bank and a few of the other broken states in Europe today, they know that the only real cash in circulation is ours, that we worked for and got physically, the rest is as Celente says Funny money.

I have said it a thousand times before, they are using our money against us, so I think its time to start taking back what is ours and spending it with our local makers of things, even if it costs slightly more, go for quality not quantity, its the only way to buy back our freedom or what's left of it.

For many years now any cheques or wires I have gained, I always take my money straight out of the bank as soon as they clear, my manager hates me and has tried on many occasions to reel me in with an overdraft of credit card, but I always resist, what I don't have I can't spend, its best to make and do, instead of worrying about it.

This thread is THE warning sign of the times to come, so it time I think to start buying into the things we need from local people not the slave trade, so the locals will also have a better chance of surviving, go else where for those products and we won't have a community of anything left when we most need it, get ready to fly and thank's again R6 for you work here, top post as usual.

[rodin]

Does smell bad this.

Then again with Rothschild's minions running the corrupt banking system any crime is possible.

[the apprentice]

So if someone buys a house then can't get their money out, starts a struggle with the back to release money, the deal falls though. If this happens enough times the property market then is affected, the biggest market of the lot can then be manipulated. Say someone is on the verge of repossession, the deal falls though this way, the bank can then amass trillions of pounds/dollars worth of property for next to nothing, hold it, then sell it once the economy starts up again. One less reason for leaving a foreclosed house standing.

This is definately not cricket, I have seen our whole shoe making industry get sold down the river to china and india, a local businessman used to buy up whole inventories and ship them straight to india for vast profits.

What we should be doing is becomming more luddite in nature, smash all the machinery beyond repair to stop our life blood from being sold to another who would use that technology against us and allow them to re-tool cheaply at our expense, I certainly would take the hammer to all my own equipment before letting Patel, Singh or Zion get his hands upon it.

[brainfreeze]

:?

[baxter]

The double dip is yet to come.

[real6]

Citibank Controversy Puts Dubious FDIC Guarantee Back In The Spotlight

7 day restriction on bank withdrawals could mean the difference between preserving or destroying your life savings if the U.S. dollar collapses

http://www.prisonplanet.com/citibank-controversy-puts-dubious-fdic-guarantee-back-in-the-spotlight.html

The recent controversy surrounding Citibank’s advisory to its customers reserving the right to impose a 7 day restriction on withdrawals from their accounts is a stark reminder of the vulnerability of the fractional reserve banking system and the FDIC’s shaky guarantee that it can insure deposits in the event of a bank run.

As we reported last week, Citibank’s notice informing its customers of the right to request 7 days notice before funds can be withdrawn from all checking, savings and money market accounts was necessary to ensure compliance with Federal Reserve regulations.

Fox News Business reported on the “little known regulation” yesterday in a piece by Darryl R. Isherwood.

“The requirement is part of Regulation D of the Securities Act of 1933. It applies to all accounts classified as Negotiable Order of Withdrawal [NOW] accounts – basically interest-bearing checking and savings accounts held by individuals and non-profits. Banks are not required to hold reserves in place to cover NOW accounts, so the rule prevents a run on withdrawals for which there are no reserves,” states the report.

For those still unaware of the fact, it may come as a shock that your bank has no reserves with which to cover withdrawals if there was a sudden loss of confidence and a good old run on the bank as has happened on several occasions over the last two years in both the UK and the U.S.

“According to a spokeswoman, the bank changed the status of the bulk of its consumer checking accounts last year to take advantage of an FDIC policy to provide unlimited account protection to certain types of accounts. When Citi transferred the accounts back to their original status, it triggered the notification of the seven-day requirement,” states the report.

Although the FDIC claims it guarantees insurance to the tune of $250,000 per depositor per bank, the rising number of bank failures and those placed on the “problem list” has stoked fears that the tank is running dry.

Alarmingly, The Federal Deposit Insurance Corp. only has about $50 billion to “insure” about $1 trillion in assets across the nation’s financial institutions. This was even admitted in a Yahoo.com article shortly after the collapse of Lehman Brothers in 2008. When Americans realize the fact that banks are “going to run out of money”, the article nonchalantly stated, a run on the banks will accelerate.

(ARTICLE CONTINUES BELOW)

Citibank Controversy Puts Dubious FDIC Guarantee Back In The Spotlight 190110banner4

On Tuesday the FDIC announced that its deposit insurance fund suffered a whopping $12.6 billion drop in the final three months of 2009 due to accelerating bank closures. “The fund’s reserve ratio was -0.39% at the end of the quarter, the lowest on record for the combined bank and thrift fund,” according to the announcement.

FInancial experts have predicted that the failure of 300-500 U.S. banks would absorb all of the FDIC’s insurance funds. This is precisely why people are worried about banks imposing delays on access to their savings, not as a result of some Internet conspiracy run amok, as the Fox News Business article implies, but as a consequence of the true magnitude of what could plausibly happen in a worst case scenario.

If the U.S. dollar was to suffer a sudden and drastic collapse as innumerable financial experts have predicted and hyperinflation ensued, then being unable to access your money or swap it for another currency or commodity for a period of 7 days could be the difference between preserving your life savings or having them rendered practically worthless.

Imagine if the United States were to suffer a Weimar Republic style collapse and the cost of a pound of butter soared to a million dollars. Generations of wealth could be wiped out overnight if people were unable to access their savings.

It’s no surprise therefore in the current climate that investors have flocked to physical gold and silver bullion not only as a means of preserving their wealth, but ensuring that it actually exists in the first place. With banks affording themselves the power to loan out increasing multiples of what they hold at any one time while the money supply is artificially doubled, being reminded of the fact that our nest eggs consist of nothing more than numbers on a computer screen which can be withheld from us at the discretion of the banks isn’t exactly going to restore trust in traditional methods of saving.

[zero1]

Source - prisonplanet.com (http://www.prisonplanet.com/citigroup-warns-customers-it-may-refuse-to-allow-withdrawals.html)

Article in full, dated February 22nd, 2010 -

CITIGROUP SAYS FEDS ORDERED 7 DAY RESTRICTION ON BANK WITHDRAWALS

Announcement stokes fears of old fashioned bank runs if economy takes a turn for the worse.

A new advisory being sent by America’s third largest bank to its account holders has stoked fears that major financial institutions could be preparing for old fashioned bank runs if the economy takes a turn for the worse.

Originally reported by John Carney over at the Business Insider website, Citigroup is sending the following information to customers along with their bank statements.

“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.”

An almost identical advisory to the one being sent out can be read on page 22 of Citbank’s Client Manual effective January 1, 2010, which can be read here from Citibank’s own website.

“We reserve the right to require seven (7) days advance notice before permitting a withdrawal from all checking, savings and money market accounts. We currently do not exercise this right and have not exercised it in the past,” states the manual.

According to the Future of Capitalism blog, Citigroup originally claimed that the warning was only sent nationwide as a result of a mistake, but that the measures do apply to account holders in Texas.

However, in a statement, Citigroup confirmed that they had reserved the right to impose the new 7 day rule on all account holders nationwide, but claimed they had no plans to enforce it. The bank stated that they had been forced to enact the new policy as a result of federal regulations.

“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,” reads a statement released by the bank.

Over the last 18 months, numerous rumors of bank runs, “bank holidays,” and limitations on access to cash at ATM’s have been floating around. Citigroup’s new policy to restrict withdrawals won’t do anything to calm such fears.

As we reported back in 2008, the Federal Deposit Insurance Corp., which guarantees individual accounts up to $100,000, only has about $50 billion to “insure” about $1 trillion in assets across the nation’s financial institutions.

This revelation prompted fears that an accelerating amount of bank closures could absorb FDIC funds and leave holders of money market and traditional savings accounts exposed.

[eternal wheel]

For many years now any cheques I have gained, I always take my money straight out of the bank as soon as they clear, my manager hates me and has tried on many occasions to reel me in with an overdraft of credit card, but I always resist, what I don't have I can't spend, its best to make and do, instead of worrying about it.

same as.

This thread is THE warning sign of the times to come.:cool: