Sunday, February 21, 2010

Banking Troubles

If you all recall, I mentioned while back not to have much money in banks, read the following:

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.”


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

12 comments:

  1. oh shit, oh shit, this is not good, damn.

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  2. rrrruroooh trouble in doodah coming

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  3. Nobody should have all their money in one bank or credit union, the maximum should be the FDIC or whatever the insured limit is.

    Always have a few thousand in cash , small bills and change on hand in case of an emergency.

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  4. Shades of Argentina! Capital access restrictions and seizing retirement accounts is third world outcome.

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  5. First allowing MM redemption restrictions now Citi "Reserving It's Rights" Not Good, Not Good @ All....

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  6. Analyze,

    PBR doing well, part of stagflation price in food and energy. FED behavior.

    joe

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  7. Red,

    It's amazing, we have talked about this for almost 18 months, and for what ever reason MOST continue to look at issues black and white. One of the main reasons most retail traders will go broke when it's all said and done, OR so confused that they prefer to stay out. It's all fine by me, it is what it is.

    "It's not black and white deflation or inflation at the moment. Deflation will continue in leveraged assets like homes, but stagflation will continue in the short term in essentials like food and energy."

    joe

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  8. Joe,

    It's an entitlement mentality, "I am right and everything should burn so that I can win the Prechter Powerball lottery right now!!!!"

    It's not what the peons without power want, it's what those in power want to keep that matters.

    The personal attacks on the SKF board are getting intense considering this was the first visit in the past day in over a month. People can't seem to deal with the rosed colored reality being presented by those in power, it will get really ugly when the powers throw in the towel and say screw it on the last flight to Costa Rica and Switzerland.

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  9. Red,

    Powers won't throw in the towel, they will use escape goats and force the escape goats to fly out of the country. As far as people, they will face shortage of alpo and concentration camps. The real power are not those whom public sees their faces on T.V. They have established themselves all over the globe for the past 80 yrs or so.

    joe

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  10. As joe says talk is cheap....action has NO chance against the real power......

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  11. Joe, I like the cleanness of the PBR chart. - Analyze.

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  12. Here's something to mull over. Someone, cough, requested a cashout of an estate IRA, would pay the 20% withholdings and all not interested in rolling over and playing dead, it was approved to go through the middle of February. That someone received a letter today dated the 2nd of February, from the feds stating they were going to get more time (1 month) to think it over to roll it over into one of many complicated tax deferral schemes. If that someone wanted to proceed with the prior plan of cashing the middle of February they had to respond fast for the next deadline. Hint that someone just took another 5% (enough Alpo to fill a small room) haircut of some US Treasuries as the Feds were snowed in and wanted to help out another the great unwashed.

    Times are too bad now, kind of wondering what capital controls will be instituted when they do get that bad, both subtle and overt.

    Cheers!

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