coming bank holiday?

Discussion in 'News / Current Events' started by billwald, Feb 23, 2010.

  1. billwald

    billwald
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  2. preachinjesus

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    meh, I don't use Citibank
     
  3. billwald

    billwald
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    Citibank claims this is in response to a new federal law so unless you only use cash . . . .
     
  4. targus

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    Seven days notice to withdraw funds is not exactly a "freeze".

    I am not aware of any bank that does not have some sort of notification to withdraw verbage in the account contract on checking accounts.
     
  5. targus

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    Can you provide a source?
     
  6. Crabtownboy

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    Yep, sure can ..................................

     
  7. targus

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    What does this have to do with "bank holidays" and "freezing accounts"?
     
  8. Salty

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    Actually some banks do have a 2 or 3 day waiting period for checks, and even longer for out of state/commonwealth and or area.
     
  9. Crabtownboy

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    Ask the poster of the OP. :laugh:


    Hmmmmmmmmm, do you know what a "bank holiday" means?
     
  10. Salty

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    Yea, theres no mail, and DMV is closed
     
  11. billwald

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    http://www.livinghistoryfarm.org/farminginthe30s/money_08.html

    When a new president, Franklin Delano Roosevelt was inaugurated in March 1933, banks in all 48 states had either closed or had placed restrictions on how much money depositors could withdraw. FDR's first act as President was to declare a national "bank holiday" – closing the banks for a three-day cooling off period. The most memorable line from the President's speech was directed to the bank crisis – "The only thing we have to fear is fear itself."

    http://en.wikipedia.org/wiki/Emergency_Banking_Act

    (Note sec 3 below)

    The Emergency Banking Act (the official title of which was the Emergency Banking Relief Act) was an act of the United States Congress spearheaded by President Franklin D. Roosevelt during the Great Depression. It was passed on March 9, 1933. The act allowed a plan that would close down insolvent banks and reorganize and reopen those banks strong enough to survive. In summary, the provisions of the act were as follows:
    Title I, Section 1. To affirm any orders or regulations the President or Secretary of the Treasury had given since March 4, 1933.
    Title I, Section 2. To give the President the ability to declare a national emergency and have absolute control over the national finances and foreign exchange of the United States in the event of such an emergency.
    Title I, Section 3. To authorize the Secretary of the Treasury to order any individual or organization in the United States to deliver any gold that they possess or have custody of to the Treasury in return for "any other form of coin or currency coined or issued under the laws of the United States".
    Title I, Section 4. To make it illegal for a bank to do business during a national emergency (per section 2) without the approval of the President.
    Title II. To enable the Comptroller of the Currency (a post in the US Treasury) to take complete control of and operate any bank in the United States or its territories and to establish the terms and conditions under which bank is administered.
    Title III. To allow banks to disown their debts with the permission of the Comptroller of the Currency and a majority vote of their stockholders.
    Title IV, Section 401. To allow Federal Reserve banks to convert any US debt obligation (such as a bond) into cash at par value and any check, draft, banker acceptance, etc, into cash at 90% of its apparent value.
    Title IV, Section 402. To allow the Federal Reserve banks to make unsecured loans to any member bank at an interest rate of 1% over the prevailing discount rate.
    Title IV, Section 403. To allow Federal Reserve banks to make loans to anyone for up to 90 days if the loan is secured by a general obligation of the United States (such as a Treasury bond, for example).
    Title V, Section 501. Appropriation of $2,000,000 to the President for carrying out this legislation.
    Title V, Section 502. (a severability clause)
    The Emergency Banking Act was introduced on March 9, 1933, to a joint session of Congress and was passed the same evening amid an atmosphere of chaos and uncertainty as over 100 new Democratic members of Congress swept into power determined to take radical steps to address banking failures and other economic malaise. The sense of urgency was such that the act was passed with only a single copy available on the floor and most legislators voted on it without reading it.[1]
    According to William L. Silber[2] "The Emergency Banking Act of 1933, passed by Congress on March 9, 1933, four days after FDR declared a nationwide bank holiday, combined with the Federal Reserve’s commitment to supply unlimited amounts of currency to reopened banks, created de facto 100 percent deposit insurance. Much to everyone’s relief, when the institutions reopened for business on March 13, 1933 depositors stood in line to return their hoarded cash to neighborhood banks. Within two weeks, Americans had redeposited more than half of the currency that they had squirreled away before the bank suspension.The stock market registered its approval as well. On March 15, 1933, the first day of trading after the extended closure, the New York Stock Exchange recorded the largest one-day percentage price increase ever. With the benefit of hindsight, the nationwide Bank Holiday and the Emergency Banking Act of March, 1933, ended the bank runs that had plagued the Great Depression."
    This act was a temporary response to a major problem. The 1933 Banking Act passed later that year presented elements of longer-term response, including formation of the Federal Deposit Insurance Corporation (FDIC).
    [edit]References

    ^ Senate Report SR 93-549, November 19, 1973
    ^ "Why did FDR's Bank Holiday Succeed?", Federal Reserve Bank of New York Economic Policy Review, July 2009
    [edit]
     
  12. targus

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    And how are you getting from the OP to a bank holiday or freeze on accounts?

    More stream of consciousness posting?
     
  13. billwald

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    Targus - what are you smoking? I'd like to try it.
     
  14. Crabtownboy

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  15. targus

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    So how do you get from the OP to a "bank holiday" or "freezing of accounts"?
     
  16. Robert Snow

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    Seems like the OP defined exactly what you are asking for. What am I missing?
     
  17. targus

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    The bank having the contractural right to requiring a seven days notice to release funds is hardly a "bank holiday".

    Nor is it a "freezing of an account".

    I suggest you ask your bank about their policy concerning written notice to withdraw funds. Three to seven days is the norm for any checking account.

    This is nothing new.
     
  18. Robert Snow

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    What about the person who has direct deposit. Would they be required to wait to pay their bills? If so, this could be a gigantic problem!
     
    #18 Robert Snow, Feb 24, 2010
    Last edited by a moderator: Feb 24, 2010
  19. billwald

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    The notice:

    http://www.foxbusiness.com/story/markets/industries/finance/citi-notice-causes-customer-angst/

    The bank code:

    http://ecfr.gpoaccess.gov/cgi/t/tex...iew=text;node=12:3.0.1.1.10.2;idno=12;cc=ecfr


    Title 12: Banks and Banking
    PART 229—AVAILABILITY OF FUNDS AND COLLECTION OF CHECKS (REGULATION CC)

    Browse Previous | Browse Next
    Subpart B—Availability of Funds and Disclosure of Funds Availability Policies

    § 229.10 Next-day availability.

    (a) Cash deposits. (1) A bank shall make funds deposited in an account by cash available for withdrawal not later than the business day after the banking day on which the cash is deposited, if the deposit is made in person to an employee of the depositary bank.

    (2) A bank shall make funds deposited in an account by cash available for withdrawal not later than the second business day after the banking day on which the cash is deposited, if the deposit is not made in person to an employee of the depositary bank.

    (b) Electronic payments— (1) In general. A bank shall make funds received for deposit in an account by an electronic payment available for withdrawal not later than the business day after the banking day on which the bank received the electronic payment.

    (2) When an electronic payment is received. An electronic payment is received when the bank receiving the payment has received both—

    (i) Payment in actually and finally collected funds; and

    (ii) Information on the account and amount to be credited.

    A bank receives an electronic payment only to the extent that the bank has received payment in actually and finally collected funds.

    (c) Certain check deposits— (1) General rule. A depositary bank shall make funds deposited in an account by check available for withdrawal not later than the business day after the banking day on which the funds are deposited, in the case of—

    (i) A check drawn on the Treasury of the United States and deposited in an account held by a payee of the check;

    (ii) A U.S. Postal Service money order deposited—

    (A) In an account held by a payee of the money order; and

    (B) In person to an employee of the depositary bank.

    (iii) A check drawn on a Federal Reserve Bank or Federal Home Loan Bank and deposited—

    (A) In an account held by a payee of the check; and

    (B) In person to an employee of the depositary bank;

    (iv) A check drawn by a state or a unit of general local government and deposited—

    (A) In an account held by a payee of the check;

    (B) In a depositary bank located in the state that issued the check, or the same state as the unit of general local government that issued the check;

    (C) In person to an employee of the depositary bank; and

    (D) With a special deposit slip or deposit envelope, if such slip or envelope is required by the depositary bank under paragraph (c)(3) of this section.

    (v) A cashier's, certified, or teller's check deposited—

    (A) In an account held by a payee of the check;

    (B) In person to an employee of the depositary bank; and

    (C) With a special deposit slip or deposit envelope, if such slip or envelope is required by the depositary bank under paragraph (c)(3) of this section.

    (vi) A check deposited in a branch of the depositary bank and drawn on the same or another branch of the same bank if both branches are located in the same state or the same check processing region; and,

    (vii) The lesser of—

    (A) $100, or

    (B) The aggregate amount deposited on any one banking day to all accounts of the customer by check or checks not subject to next-day availability under paragraphs (c)(1) (i) through (vi) of this section.

    (2) Checks not deposited in person. A depositary bank shall make funds deposited in an account by check or checks available for withdrawal not later than the second business day after the banking day on which funds are deposited, in the case of a check deposit described in and that meets the requirements of paragraphs (c)(1) (ii), (iii), (iv), and (v), of this section, except that it is not deposited in person to an employee of the depositary bank.

    (3) Special deposit slip. (i) As a condition to making the funds available for withdrawal in accordance with this section, a depositary bank may require that a state or local government check or a cashier's, certified, or teller's check be deposited with a special deposit slip or deposit envelope that identifies the type of check.

    (ii) If a depositary bank requires the use of a special deposit slip or deposit envelope, the bank must either provide the special deposit slip or deposit envelope to its customers or inform its customers how the slip or envelope may be prepared or obtained and make the slip or envelope reasonably available.

    (and much more)
     
  20. targus

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    So what's your point?

    The OP was talking about a spefic type of checking account.

    You are generalizing their notice to all types of accounts - including savings and credit/debit cards.

    You have no basis for that generalization.

    You have no basis for calling this a "bank holiday" or a "freezing of accounts".
     

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