Bank run on Citibank?

I was scanning my morning news outlets and came across this surprising announcement from Citibank. Effective April 1, 2010, Citibank requires seven days advance notice before a customer can close or withdraw all the contents of their account. Usually, banks only institute such measures to prevent a bank run. Is something in the wind for Citibank?

It’s also interesting that this announcement comes on the heels of the new Obama Credit Card regulations that allows the feds to control CC interest rates and other areas of the credit card industry. Today, most CC accounts do not have yearly rates. They will now since that is the only method left for the CC carriers to make a profit. And remember, no profit, no business. It’s another lib/progressive attack on our financial system.

From PrisonPlanet

John Carney
Business Insider
Sunday, February 21, 2010

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.”

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In another area, Obama finally released “his” version of Obamacare on the White House website. Supposedly, it does not include a “public” option, but it is full of additional taxes and fees. From the Drudge Report headline…

BACKDOOR FIX: Healthcare 'Funds will be transferred to the Social Security Trust' if necessary...
PRESIDENT'S 'HEALTHCARE' PROPOSAL SUMMARY USES WORD 'TAX' 35 TIMES...
'Increase in Fees on Brand Name Pharmaceuticals'...
Broaden 'Tax Base for High-Income Taxpayers'...
Orders 'Comprehensive Database' On Health Claims...
FORCED: 'Raises percent of income assessment that individuals pay if they choose not to become insured'...

It gives HHS the authority to regulate health insurance rates that would override the current authority of the states. It also mandates wider Medicaid coverage at a time the states are having trouble meeting their current fiscal obligations.

WASHINGTON (Reuters) – The already gloomy conditions of states’ economies are set to worsen, according to preliminary survey findings from the National Governors Association released on Saturday.

“The situation is fairly poor for a lot of states around the country. In fact, most states,” Vermont Governor Jim Douglas, who is chairman of the association, said at a press conference at its annual meeting.

“What we’re finding out from a fiscal standpoint is that the worst is yet to come,” Douglas said.

With one exception, the states must have a balanced budget unlike FedGov. Obama may be able to “limit” some of his plan’s cost but he does so by shifting more unfunded mandates upon the states.

I’m wondering why the ‘Pubs should be meeting with Obama when he attempts to sandbag in this fashion. It’s clear the White House never intended to listen to any input other than their own. The meeting is just another tactic to try to put one over the republican opposition.

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