Wednesday, February 24, 2010

Citigroup Is Engaging In Acts Of Desperation

h/t FTW

Citigroup warns it may refuse to withdraw money to customers

On Friday, Citigroup sent statements to customers across the U.S. to inform them that they could be required to submit an advanced notice of seven days if they want to withdraw money from checking accounts, according to the Business Insider. Canada Free Press reports that the move will take effect as of April 1 of this year, “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.”

We should expect to see more and more of this. Of course, if Citigroup decides to freeze your account, they'll be happy to charge you hot check fees. Further, this is your warning that they may do it. The next warning you get, may be a multipage statement of overdraft fees.

We should see a lot more of this kind of activity spreading through the banking system. As oil supplies continue their 9% annual decline and China continues to drive it's industrial growth through monetary means, the economic dislocations will continue to grow.

The current banking growth is all smoke and mirrors at this point. There is no underlying industrial growth to support the financial growth that the bailouts produced. And now that our policy makers are beginning to feel confident they dodged the bullet, they are going to loosen the supports and see which banking institutions will survive.

Even Goldman Sachs seems to be agreeing, that oil prices are going to spike again. but they don't talk about the aftermath. The current high oil prices are destructive to the underlying economy. They prevent businesses from repaying loans, and ultimately, from getting them. The high cost of crude continues to drive bankruptcies. The upcoming spike in price will drive many more, underwater.

But that's why I'm here. I'm still calling for an economic dislocation in May. Conditions are being set up to trigger another wave of bank failures. Citigroup evidently, is in the know and expects to survive it.

And we'll see a repeat of the last event. The not too big to exist banks, will get hammered, closed and given as tribute to Intergalactic Black Hole Banks. The Giant Sucking Banks will then get another round of bailouts. Policy makers will then find many other ways to shovel our money, and the nation's remaining bits of prosperity into the Black Sucking Pits of their Voracious Maws.

Here's hoping that we all have jobs through the end of the year.


At 8:17 AM, Anonymous Anonymous said...

Yep. I don't know why this makes me upset, it's been going on forever. There is only one course of action for the small fish, protect yourself the best you can.


At 8:20 AM, Blogger Weaseldog said...

Yup. And we knew it was coming.

I think we're just sick of being either on the money, or too optimistic.

At 10:21 AM, Anonymous Anonymous said...

i doubt the big banks have much in the way of actual customer deposits anyway.

At 10:26 AM, Blogger Weaseldog said...

Hehe Edgar :)

Google "citigroup home depot payroll"

At 1:10 PM, Anonymous Anonymous said...

Is there a fee for a bank teller cash withdrawal?
Your first bank teller withdrawal every pay period is free. After that, teller withdrawals have a fee of $2.00 for the remainder of that pay period. If the bank charges a separate fee, please contact customer service for a refund.



Post a Comment

Links to this post:

Create a Link

<< Home