Webmaster Forum

Go Back   Webmaster Forum > The Webmaster Forums > Forum Lobby > Controversial Social Issues

Controversial Social Issues Discussions concerning controversial social issues. Topics include politics, religion, culture, social and economic issues, etc. Respect required at all times.

Thread Tools Display Modes
Share |
Old 05-04-2010, 04:54 PM
Franc Tireur Franc Tireur is offline
Contributing Member
Join Date: 08-15-06
Posts: 10,109
iTrader: 11 / 100%
Citi Notice Shines Light on Little-Known Fed Rule

A recent notice to Citigroup (C: 4.27, -0.13, -2.95%) checking account holders that had clients and bloggers alike buzzing with theories of a pending bank run has brought to light a little-known Federal Reserve rule that, in very rare circumstances, could limit access to your money.

According to long-established 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 certain checking and savings accounts. The stipulation applies to all interest-bearing and interest-eligible accounts – generally every mom-and-pop checking account Citi and other large banks hold.

The requirement is part of Regulation D of the Securities Act of 1933. It applies to all accounts classified as Negotiable Order of Withdrawal [NOW] accounts – basically interest-bearing checking and savings accounts held by individuals and non-profits. Banks are not required to hold reserves in place to cover NOW accounts, so the rule prevents a run on withdrawals for which there are no reserves.

Earlier this month, Citi notified its account holders of the requirement, sparking rumors in some circles that Citi was preparing for a coordinated bank run, perhaps triggered by a protest over Wall Street bonuses or the bank bailout plan.

So banks could limit access to your money because of The Fereral Reserve rule?
Reply With Quote



Go Back   Webmaster Forum > The Webmaster Forums > Forum Lobby > Controversial Social Issues


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

V7N Network
Get exposure! V7N I Love Photography V7N SEO Blog V7N Directory

All times are GMT -7. The time now is 10:47 PM.
Powered by vBulletin
Copyright © 2000-2014 Jelsoft Enterprises Limited.
Copyright © 2003 - 2018 VIX-WomensForum LLC