World Bank: Citigroup Warns They Will Not Allow Withdrawals During Crisis

[clb09]

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

“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.

YouTube - Economic Collapse: Bank Runs, China, Peter Schiff, Gerald Celente, Max Keiser

 

[tpreitzel]

Uh, oh.... Hopefully, it's an April Fools' joke.

"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."

 

[RCA]

This is why you should always have some cash hidden away.

 

[angelatc]

http://karendecoster.com/8568.html

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.

…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.”

Banks are not allowed to be closed for more than 3 days in a row, in order to allow people access to their money. This really doesn't bode well for that.

 

[Lafayette]

What possible reason could their be to have it only apply to Texas?

 

[Bruno]

Citibank moved to "unlimited FDIC insured coverage in 2009?" I thought the new cap was $250,000.

 

[tpreitzel]

What possible reason could their be to have it only apply to Texas?

This article needs much more clarification.

 

[devil21]

What possible reason could their be to have it only apply to Texas?

It's actually not just in Texas. Denninger had a Ticker about it other day and according to a scan of T&C of a Citi account, that clause is in all of Citi's paperwork regardless of your location.

 

[TN_VOL]

There's a link to the prisonplanet article on the right hand side of the Drudgereport.....unbelievable that he linked to a prisonplanet article. Hopefully this will be the start of a trend.

 

[HOLLYWOOD]

CITI: We're running a PONZI scheme, we're insolvent and propped up by the Federal government courtesy of the taxpayers... that being said, we don't have money to cover the deposits of our customer accounts.

When we shutdown contact the FDIC for your $250K maximum payout.