“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.”If this report is true, then the management of the 3rd largest bank in the country is very concerned about a run...
An almost identical advisory to the one being sent out can be read on page 22 of Citbank’s Client Manual effective January 1, 2010, which can be read here from Citibank’s own website.
“We reserve the right to require seven (7) days advance notice before permitting a withdrawal from all checking, savings and money market accounts. We currently do not exercise this right and have not exercised it in the past,” states the manual.
Monday, February 22, 2010
It appears that CitiGroup is preparing for a run by its depositors. If this is true, they will impose a "7 day" rule, wherein no withdrawals will be permitted for 7 calendar days. This rule hasn't been imposed since FDR's "bank holiday" was imposed during the 1930's....and is VERY scary.