Orange County: Campaign For Liberty

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Citigroup Warns Customers It May Refuse To Allow Withdrawals

Note from Tom: I find this "notice" from Citibank to be quite ominous. It brings to mind articles on "bank holidays" that were used to lock-up citizens money in a bank, while the currency was debased/devalued.

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John Carney | Feb. 19, 2010, 2:57 PM

Tags: Financial Services, Banks, Wall Street, Citi

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."

Views: 3

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Comment by pete on February 23, 2010 at 8:22pm
Will that happen with a smaller bank?
Comment by Todd on February 23, 2010 at 5:13pm
It's good because I have been telling my Dad about the Federal Reserve for several years now and he is finally starting to listen.
Comment by Todd on February 23, 2010 at 5:11pm
It's very bad and good at the same time. My dad was just telling me he agreed with Ron Paul's prediction that the economy will collapse but that he didn't know when. They wouldn't do this unless it was close.

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