Drudge Retort: Red Meat for Yellow Dogs
Thursday, February 25, 2010

A notice to Citi account holders has shed light on a Federal Reserve rule that could limit access to your money. According to Fed policy, banks must reserve the right to require at least seven days' prior written notice before allowing the withdrawal or transfer of funds from interest-bearing and interest-eligible checking and savings accounts. The requirement is part of Regulation D of the Securities Act of 1933. It applies to Negotiable Order of Withdrawal [NOW] accounts. Banks are not required to hold reserves to cover these, so the rule prevents a run on withdrawals for which there are no reserves. "We recently communicated this technical requirement to our customers. However, we have never exercised this right and have no plans to do so in the future," Citi said in a statement.

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The requirement is part of Regulation D of the Securities Act of 1933.

Doesn't sound unreasonable. You could always keep your money in your mattress I guess.

Citibank said it has never used the provision, adding that it has no plans to in the future.

They just disclosed to their customers about a week ago that this 'rule' from 1933 exists. They claim they have no plans to exercise the rule.

You can go back to sleep now.

LR, you know me. I don't need much of an excuse to grab hold of a wild theory. I was aware of this provision almost a decade ago. I had forgotten about it though. But really, I don't see what's wrong with them requiring advanced notice that you intend to withdraw funds should circumstances warrant. They are giving you interest on your money. What's the problem?

First, it is my money.
Second, they are not "giving" me anything. It is my money, your money, in deposits that allows them to borrow extremely cheap from, you guessed it, the United States citizens, so that they can screw everybody.

Just so you know, all the banks are broke, they, and govcorpco., are lying through their teeth.
The banks are private, for profit entities that have NO representation under the constitution.
Your money is YOUR property.

Lying, subversive scum.
Take your money out of the banks, save for what is needed to pay bills, refuse to opt in for overdraft protection.
Bleed these greedy fuckers into collapse.

Gitmboy,

FTA:

"This is the difference between demand deposits and savings. Only demand deposits are really immediately available, everything else is a matter of practice rather than contractual obligation,"

Its a two way street. They give you a place where you can keep your money safely. If you want to collect interest on your account, the rule applies. If your account does not accrue interest, the rule does not apply. Its your choice.

Hagbard, where is your money? Truth please.

80% invested.
20% sitting in the bank. One account is interest bearing that would fall under this rule.

Why are you asking?

Why are you asking?

He's trying to decide what to do if burger king gives him a raise. I imagine the decision comes down to investing in a half ounce of gold or moving out of his mother's basement.

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