Late last week, a slight furor arose when it became public knowledge that Citibank sent the following notice to customers:
“Effective April 1, 2010, we reserve the right to require seven (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.”
In my opinion, this was not just a notice about Citibank or Citigroup. It was a notice to people that all banks are undercapitalized and all have the right to take up to seven (7) days to clear a check or to give you all the money in your checking account if you demand it.
