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."
Maybe all these 2 big 2 fail banks have these special departments, and all they do all day is to figure out the dumbest ideas possible and send it to management. Seriously, they're treating every single depositor like money laundering criminals.
They say they haven't had to use the provision in the past. That would imply this is not a new policy, and has been in place for some time.
Broke Greece made a law against transacting more than 1500 in cash. US is broke and slowly but surely that will become evident in few more years. These are the signs. The FED debt and our brilliant Leadership under Bush/Obama made sure our imperialistic ideals are gonna do us in. But don't worry just drink beer and watch Football
I'm guessing you won't be covered by FDIC either. That would only pay out if they went bust right? If they just refused to give you your money back then that's a whole different issue......?
A friend of mine associated with the bank and credit union industry said that when that money market fund, the name of which I cannot recall, "broke the buck", back during the semi-meltdown, people got concerned over the potential damage. He believes that he saw a change in the law a while back that gives the banks the right to hold your money up to 30 days. The change would prevent a very rapid withdrawal and give the institution a chance to line up the money as they generally have the depositor's money loaned/invested elsewhere. Jack
If you are referring to mid Sept. 08 the Treasury later admitted there wasn't enough money in circulation to cover all withdrawals.
That was the timeframe and it was a result of Lehman's bankruptcy and the money market fund holding a lot of Lehman short-term paper. However, as I understand what my friend said, the ability of a bank to not pay a true check (as opposed to a sort-of-check drawn on an interest paying checking account) is new. Jack
#@*&! There's never been enough currency for everybody to withdraw all their money, at least not for the past few decades. I probably haven't had 5% of my money ever in green. Now that I do all my stuff OL, I bet I don't even see 0.1% (a dime out of a benji) in real money, nor do I write checks for much.