Home › Forums › Financial Markets/Economics › CITIBANK warning ! What do they know ???
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Casca.
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April 24, 2010 at 12:40 AM #544158April 24, 2010 at 6:14 PM #543555
Effective Demand
Participant[quote=HLS]
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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.
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This has been a condition for savings/money market/cash withdrawls in the past, but NEVER on a checking account.WHY would they have this warning ?
WHO allows that they only have to disclose this on ONE statement over the past year.[/quote]
It’s an accounting thing, if they do this they get to say they have higher reserve level because they can technically have access to all of their checking accounts funds for seven days and that changes how you calculate your reserves. The technical term is they are reclassifying their Demand Deposit Accounts to NOW (“Negotiable Order of Withdrawal”) accounts.
This would actually allow them to leverage up and make more loans and extend more credit.
It isn’t nearly as sinister and a warning from the market as some here are making it out to be.
April 24, 2010 at 6:14 PM #543670Participant[quote=HLS]
********************
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.
*********************
This has been a condition for savings/money market/cash withdrawls in the past, but NEVER on a checking account.WHY would they have this warning ?
WHO allows that they only have to disclose this on ONE statement over the past year.[/quote]
It’s an accounting thing, if they do this they get to say they have higher reserve level because they can technically have access to all of their checking accounts funds for seven days and that changes how you calculate your reserves. The technical term is they are reclassifying their Demand Deposit Accounts to NOW (“Negotiable Order of Withdrawal”) accounts.
This would actually allow them to leverage up and make more loans and extend more credit.
It isn’t nearly as sinister and a warning from the market as some here are making it out to be.
April 24, 2010 at 6:14 PM #544144Participant[quote=HLS]
********************
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.
*********************
This has been a condition for savings/money market/cash withdrawls in the past, but NEVER on a checking account.WHY would they have this warning ?
WHO allows that they only have to disclose this on ONE statement over the past year.[/quote]
It’s an accounting thing, if they do this they get to say they have higher reserve level because they can technically have access to all of their checking accounts funds for seven days and that changes how you calculate your reserves. The technical term is they are reclassifying their Demand Deposit Accounts to NOW (“Negotiable Order of Withdrawal”) accounts.
This would actually allow them to leverage up and make more loans and extend more credit.
It isn’t nearly as sinister and a warning from the market as some here are making it out to be.
April 24, 2010 at 6:14 PM #544239Participant[quote=HLS]
********************
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.
*********************
This has been a condition for savings/money market/cash withdrawls in the past, but NEVER on a checking account.WHY would they have this warning ?
WHO allows that they only have to disclose this on ONE statement over the past year.[/quote]
It’s an accounting thing, if they do this they get to say they have higher reserve level because they can technically have access to all of their checking accounts funds for seven days and that changes how you calculate your reserves. The technical term is they are reclassifying their Demand Deposit Accounts to NOW (“Negotiable Order of Withdrawal”) accounts.
This would actually allow them to leverage up and make more loans and extend more credit.
It isn’t nearly as sinister and a warning from the market as some here are making it out to be.
April 24, 2010 at 6:14 PM #544510Participant[quote=HLS]
********************
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.
*********************
This has been a condition for savings/money market/cash withdrawls in the past, but NEVER on a checking account.WHY would they have this warning ?
WHO allows that they only have to disclose this on ONE statement over the past year.[/quote]
It’s an accounting thing, if they do this they get to say they have higher reserve level because they can technically have access to all of their checking accounts funds for seven days and that changes how you calculate your reserves. The technical term is they are reclassifying their Demand Deposit Accounts to NOW (“Negotiable Order of Withdrawal”) accounts.
This would actually allow them to leverage up and make more loans and extend more credit.
It isn’t nearly as sinister and a warning from the market as some here are making it out to be.
April 25, 2010 at 11:30 AM #543679Casca
ParticipantEvidently they’ve forgotten the meaning of a “demand deposit”.
April 25, 2010 at 11:30 AM #543795ParticipantEvidently they’ve forgotten the meaning of a “demand deposit”.
April 25, 2010 at 11:30 AM #544268ParticipantEvidently they’ve forgotten the meaning of a “demand deposit”.
April 25, 2010 at 11:30 AM #544363ParticipantEvidently they’ve forgotten the meaning of a “demand deposit”.
April 25, 2010 at 11:30 AM #544635ParticipantEvidently they’ve forgotten the meaning of a “demand deposit”.
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