If you BANK at a Citibank, better read this.

[dixiegrrrrl]

And I would like to know....does YOUR Citibank( NOT credit card, but banking)
statement have this on it:

This is from Today's Market Ticker.

****Seen on a recent Citibank (C) 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."

The writer there says that he called Citi (as did the other author over on the other site) and was told this applied "only to accounts in Texas."
Folks, the formal name for a checking account is a demand account. It is called a demand account for the very reason that you have a right to all your money, on demand.

Now maybe there's some new law that applies only in Texas, or maybe there isn't. Who knows - or cares.

The fact of the matter is that any bank that reserves the right (whether they claim through some external cause or not) to throw up a gate on a demand account is no longer marketing demand accounts.

My checking account is such a demand account and I'll be damned if I'll have my checking money anywhere that doesn't fit that description.******

http://market-ticker.denninger.net/

[Somawas]

1. Change banks NOW!

Time to vote with our feet on Citi.

End their problem of being too big to fail by making them smaller.

[oldhippie]

2. If I remember some old banking law classes from years ago ........

..... with a demand account you can always withdraw your funds "on demand." However, those funds may be provided as a cashier's check, bank check, wire transfer, or other "instrument." To actually get cash or currency the banks have the ability by law to place limits on the amount to be withdrawn per day, or to allow a certain number of days to come up with the cash. This is because no bank has enough cash on hand to service all custmers who might want to withdraw all their funds in cash in a crisis. The government allows this, even encourages it, to allow them (the govt) to be able to declare a "bank holiday" in an emrgency and gain some coolong off time.

I don't think this is new. Texas may have just passed a law requiring more periodic disclosure of this rule. Again, my knowledge is dated. Others may have more recent info. If there is something new I'd like to know about it.

[dixiegrrrrl]

3. Banks do not generally make ongoing customers wait a week to get money

for day to day expenses.
Waiting a week to clear a large check is one thing.
Waiting a week to draw out ANY money from an existing account is another.
What if your Citi Credit card needs to be paid?
And you cannot write a check for a week?
How much money will Citibank make on the interest of that card multiplied by 1,000s of
Citibank customers.
What happens when other banks decide the same thing?

[FBaggins]

20. Actually, "demand" account don't necessarily mean "on demand"

The legal definition actually allows for up to a seven-day wait, but if they do that they have to disclose it in their depositor agreement. See page 35 of the document below.


http://www.federalreserve.gov/boarddocs/supmanual/cch/200911/cch200911.pdf

[jaysunb]

4. Chase beat them the crime scene.

Five (5) bucks to cash a check drawn on THAT bank, at THAT branch, if YOU don't have an account there. :evilfrown:

[susu369]

12. That blows my mind

Several large banks do that. I just do not see how that is legal when the funds are from that bank. It's been going on for about two or three years now. Wish someone would take it to court.

[Art_from_Ark]

21. I'm guessing the reason for that service charge is

to provide some sort of insurance in case the person who doesn't have an account at the bank (and is therefore unknown to the bank) is actually trying to cash a phony/forged or stolen check.

Just my guess.

[FBaggins]

22. Nah... it's not insurance, it's plain old fee income.

They charge it because they can. They're providing a service and you aren't already a customer, so they can charge you without losing your business.

[FBaggins]

23. It has been to court a number of times.

It always loses. The bank is only required to pay a check when it is properly "presented" (in this case with an endorsement guarantee from your bank). They can charge a fee if they elect to cash a check they aren't required to.

It's gone at least to the appellate court level and lost even when the check in question was a Cashier's Check drawn on that bank.

[demosincebirth]

5. I got a notice, yesterday, from Citicard that there would be a $60 a

year service charge on my CC if I don't charge at least $2400, a years. I do charge more than triple that amount a years. I still called 'em up and cancelled it.

[roamer65]

15. Shiti is just pissed that people can pay off the higher CC interest rate balances now.

One of their famous little games ends Feb 22nd with the new CC law.

[asdjrocky]

6. Not that I have much money,

but what little I have is in a small community bank.

No way my money would go to these bastards.

Your money is their money and those of us willing to open our eyes and do just a little digging, no that's just the way the ptb want it.

[KILL THE WISE ONE]

7. move your money before they collapse

[metapunditedgy]

8. I held some shares of a "money-market" fund that went under, and they did exactly

the same thing. When the fund failed, they didn't have the cash on hand to pay everybody out right away. (It wasn't as bad as Madoff, they just couldn't get all the money together, and still haven't gotten it all back to investors.) It was a big deal and they had to work out special permission with the SEC to hold onto the money. Rules for money market funds have since changed, as well.

When a fund or a bank says they want the right to keep you from withdrawing your money, the scenario is that they want to avoid a bank run if the bank fails.

I wouldn't bank at Citi for a whole host of reasons, but other banks probably have similar rules hidden in the fine print.

[DAMANgoldberg]

9. I'm with a smaller bank...

In the shadow of 2 of the 5 largest banks in America (3 mi and eyesight), and I would have nothing to do with them because they are greedy, not responsive to the community, and flat out jerks that wouldn't know a competent teller if it gave them a wet kiss.

[upi402]

10. I demanded my checking account money once, bank said no, i withdrew all

...at my first opportunity. they failed soon after in the S&L crisis. 5 banks that i thought were unreasonable and caused me to leave, have failed. and WaMu failed even though i approved wholeheartedly. 5 for 6 :P

[dixiegrrrrl]

11. If you want to check out the health of your bank, here are 2 links:

I keep a close eye on our bank via bank tracker:

http://banktracker.investigativereportingworkshop.org/banks/

Also:
http://www.bankrate.com/rates/safe-sound/ssPromo.aspx

[nc4bo]

13. Good googly-moogly.

I swear to God I never thought I'd see so many numbers = one whole number in my life.

:puke:

Too big too fail, too big to fail - THank God It Passed. :puke:

[dixiegrrrrl]

14. Look how much the failed loan numbers jumped since 08.

And they were big then.
"Loans 90 days past due"
and
"non-accruing loans"

profit is at minus back in Sept. 09.

Not really a good set of numbers, and if you count the REAL book keeping they should be doing for all their failed loans, it would look worse.

[asdjrocky]

16. Morning kick.

Coz this is the good stuff.

[abelenkpe]

17. scary. nt

[Soylent Brice]

18. good luck to them with that.

that should go over just hunky dory.

[wishlist]

19. Capital One Money Market will also put a 7 bus. day hold on good deposits

I got screwed recently when I deposited a large payment to Capital One and then wrote a small check on it before 7 business days had elapsed. Cap One did not advise me of the hold. Cap One didn't charge me with a fee, but the bank I tried to deposit the Cap One check into did charge me a hefty fee because Cap One wouldn't honor my check although Capital One had my deposit money which had come out of another bank days earlier and there was no question Cap One clearly had my money on deposit.