Time To Leave Citibank Folks - Citi Warns of Withdrawal Gate

Resisting the New World Order

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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."

Whoa. Is this an April Fool's joke? A contingency plan to defend against the idea of what "would happen if thousands of [bank] customers pledge to withdraw their money from the bank on a certain day, unless the bonuses are capped?" A strategem cooked up by Citi's new shareholders from the hedge fund industry, an industry in which such withdrawal gates are common? An idea backed by Citi's big shareholder, Uncle Sam, or one of its regulators, Sheila Bair?

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. Whatever the explanation, it doesn't exactly inspire confidence in Citi. I've got nothing against Citi as a general matter -- I have friends who work there, and know some account holders who are generally satisfied customers. But it's hard to believe a bank would be sending out a notice like that on its statements.

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Comment by Jeff on February 22, 2010 at 3:46am: It costs them money if you leave that amount of money in an account. Leave it there.

Comment by Jeff on February 22, 2010 at 3:14am: Greg, lighten up. I have great respect for you and rely on you for a great deal of information. We can disagree on a variety of subjects and still respect one another.

Comment by elaurenzo on February 22, 2010 at 3:12am: Bankers will be bankers, if you know your rhyming slang.

Comment by Jeff on February 22, 2010 at 3:12am: I am, I have my rubber ducky float for floods and my water pistol if anyone gets smart and I do have food stored. Not sure why but it looks nice. And I have no bank accounts and refuse to use credit. In fact I refuse to pay back the 13,000 on my B of A credit card and I'm now refusing to pay the mortgage and getting ready to move to a much cheaper apartment. I protest quietly by myself.

Comment by Jeff on February 21, 2010 at 11:11pm: I think most people fail to take into consideration the power of the state and the political dynamics when they discuss hyperinflation. Argentina, Germany and Zimbabwe were, during their periods of financial instability, also unstable politically, socially and economically. The US is none of those things and also won't be in the near future, say for the next ten years and even beyond. Instability in those areas combined with financial instability leads to hyperinflation but all of those factors need to be present for hyperinflation to occur.

Comment by Jeff on February 21, 2010 at 10:38pm: OK, well that definition is one I disagree with entirely. Thanks Greg. We'll be here to find out together. 5-10 years should certainly be enough time. If we don't nuke the globe to death before then. By the way, I knew what hyperinflation means but was unsure what you meant. A great many people use that term without having a clear definition of it. Argentina, Germany and Zimbabwe we are not.

Comment by Jeff on February 21, 2010 at 9:32pm: I think we need to define the terms we use. I'm unsure what exactly hyper-inflation means and don't anticipate inflation beyond our carrying capacity, that's to say beyond our ability to afford it for the items we buy as necessity. Food has already been increasing for the past 5 years dramatically faster then other necessary expenses. I don't think inflation will be hyper in that I don't think it will be something most of us actually recognize. How many people actually recognize the difference they're paying for food right now as compared to 5 years ago and how many can't afford food? Very few I think on both accounts. These increases are hidden expenses and I don't think that perception, hidden, is going to change.

Comment by Jeff on February 21, 2010 at 8:46pm: Food, Ammo, Fuel? Maybe if you live in a third world country but not terribly helpful in the US.

Comment by Robert D on February 21, 2010 at 8:35pm: look up " government collapse " on the net ..... I am not saying its really scary [ no where even mentioned Greece ] but , I have had to drink ALLOT the 2 day after .... FYI Germany wants to kick Greece OUT of the EU .... and Dubai can't meet their dept WTF where is this "MONEY BLACK HOLE " going ?!?!?!? FOOD AMMO FUEL currency of the future ..........
THE new currency