Where is the FDIC with Citibank?

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krogoth's picture
krogoth
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Where is the FDIC with Citibank?

Emergency Telegram to Shelia Bair from Krogoth


Hello? Shelia Bair? Where are you? Stop. Citibank, Danger! Stop. Saudi Prince funds not helping. Stop. WAMU situation. Call JPM Chase and see if they want it. Stop. Try not to show favoritism as discussed so stupidly. Stop

End of telegram

krogoth's picture
krogoth
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Re: Where is the FDIC with Citibank?

OK Seriously,

 

This is a bank run in the making. Where is the FDIC? This is nothing short of criminal and Shelia Bair should resign right now. Do you know the damage she did to Washington Mutual? How many people will lose jobs at WAMU at the end of the year? How many people lost everything with WAMU stock? It's going to practically shutdown downtown Seattle. It may have a great effect on Boeing and Microsoft as well. Does anybody regulate this Bush monkey? THIS is an example of favoritism with all these bank failures, and it's not even being reported on the news. Just that CITI is down, that's all. This is getting ridiculous.

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cmartenson
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Re: Where is the FDIC with Citibank?

Something is very, very broken at Citi.

And JPM.

And Bank of America (BAC).

It is this constellation that has me worried.  Too big to fail?  What if they are too big to save?

Citi_as_a_3_dollar_stock_11-21-2008.jpg

 

The odds of a Citi-inspired pizza party at the FDIC this weekend are now sky high.

 

krogoth's picture
krogoth
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Re: Where is the FDIC with Citibank?

Chris,

We both have reported how Citibank is in trouble, it's the favoritism of the FDIC and the way they are handling things that bugs me. This needs to be investigated. Plus, the FDIC has a record of not doing much over the weekend. If JPM Chase goes down, that would be interesting. I would not shed a tear for them, because they are on top of the FDIC's favorites list. As for Bank of America, I need to get my money out and put it into Wells Fargo.

Monday should be interesting.

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Woodman
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Re: Where is the FDIC with Citibank?

I noticed while at my local BAC branch yesterday they were increasively aggressive about pushing various products to have me both deposit more and borrow more from them.

I asked a rep is there a chance of a change on my HELOC limit.  She said earlier this year they did send out letters to certain folks reducing their limits, but if I didn't get a letter nothing has changed and a reduction wouldn't happen unless I get into default; of course she couldn't guarantee things wouldn't change in the future.

krogoth's picture
krogoth
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Re: Where is the FDIC with Citibank?

I am reading on the stock message boards, and most people are saying a bank run wont happen. My ass it wont happen. This stock keeps dropping and people will pull the money.

 

 

krogoth's picture
krogoth
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Re: Where is the FDIC with Citibank?

Everyone,

I cannot express how damaging the FDIC is. I have friends that work for WAMU that's now JPM Chase, and let me tell you something I don't usually share, suicides are happening and being attempted for the actions of the FDIC because people have lost EVERYTHING. Nobody is looking at them. They are doing what they want, and giving deals to who they want. Maybe Citi is too big for Shelia to step in, they do have the largest bad mortgage owenership, who knows? But the FDIC is a HUGE factor in this equation that most people are ignoring.

 

 

 

 

 

 

wvj100's picture
wvj100
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Re: Where is the FDIC with Citibank?

It's hard for a bank run to happen these days. There is a daily cap of $5k on cash withdrawals from your account at Citi. I found out the hard way when I tried to take out money. You have to make a cash order which can take up to two weeks to fill. I am not feeling good these days as I have a large CD with them which is tied up till April 09. Will cost money to take it out early.

krogoth's picture
krogoth
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Re: Where is the FDIC with Citibank?

Not impossible though

miranda's picture
miranda
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Re: Where is the FDIC with Citibank?

I'm missing something here: I feel in the dark about this FDIC thread. What are they doing/not doing that is setting up Citibank? And what does it have to do with Chase and the WAMU bankruptcy?

btw, we were able to take more than $5K out of citibank no problem - though that was over a month ago... wonder if it's changed since then

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lundsta
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Re: Where is the FDIC with Citibank?

Here you go Miranda! This was a forum topic awhile back that Krogoth submitted. It should answer your questions.

 

http://www.peakprosperity.com/forum/jpmorgan-responsible-destruction-us-...

Hope that helps!

FYI~ It may help to take out funds Tuesday-Thursday. The reason is there is less traffic in the banks. Banks usually get their shipment of cash in on these days too.

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Damnthematrix
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FDIC Seizes Three Banks, Expanding Loan-Relief Effort

http://www.washingtonpost.com/wp-dyn/content/article/2008/11/21/AR2008112104099.html

FDIC Seizes Three Banks, Expanding Loan-Relief Effort


Washington Post Staff Writer
Saturday, November 22, 2008; Page D01

Federal regulators seized three
banks last night, including Downey Savings and Loan Association, a
large California mortgage lender, expanding what is by far the most
expensive crop of bank failures in modern American history and
indicating that the pace of failures is increasing.

The Federal Deposit Insurance Corp.,
which took control of the banks, said holders of about $1.9 billion in
Downey mortgage loans who have fallen behind on their payments would
now be eligible for reduced monthly payments to help them avoid
foreclosure. The unprecedented move in connection with a bank failure
expands the agency's controversial loan-modification program, which is opposed by other parts of the Bush administration.

Downey, with $12.8 billion in assets, is
the third-largest bank to fail this year, after Washington Mutual and
IndyMac Bancorp. All three institutions were large mortgage lenders
focused on the California market and regulated by the Office of Thrift
Supervision.

The failure was not a surprise. The
company said in a securities filing last week that it expected to be
seized by regulators, a highly unusual confession that underscored its
desperate straits. Downey was a leading originator of alternative loans
called option adjustable-rate mortgages, which work like credit
cards, allowing borrowers to pay less than the full amount due each
month. As with credit cards, many people borrowed more than they could
afford, and default rates on the loans have soared.

 

Another bank seized last night, PFF Bank
and Trust, is also a California thrift, with $3.7 billion in assets.
Its bad loans were made mostly to residential developers.

The FDIC sold both companies to U.S.
Bancorp of Minnesota. The company agreed to absorb up to $1.6 billion
in loan losses. The FDIC will absorb any additional losses. In
exchange, U.S. Bancorp gets about 200 branches in prime California
markets, expanding its presence in the state by about 60 percent.

U.S. Bancorp also agreed as a condition
of the deal to offer loan modifications to Downey and PFF customers
under an FDIC formula.

The deal marks the latest creative
expansion by FDIC Chairman Sheila C. Bair of a program she has
championed to offer loan modifications on standardized terms to as many
borrowers as possible. Bair introduced the program for borrowers at
IndyMac, which the FDIC still controls after seizing it in July.

The Bush administration has turned aside
her requests to fund the program nationally, but Bair has found a new
way to extend her program's reach. The FDIC could not immediately say
how many borrowers might be eligible for modifications.

The third failed bank, Community Bank of Loganville, Ga., was immediately sold to the Bank of Essex in Tappahannock, Va.

The pace of bank
failures is accelerating. Regulators have closed 22 banks this year,
including 12 in the past three months and five in November.

The FDIC guarantees the first $250,000
in each bank account. To make good on that pledge it collects insurance
premiums from every U.S. bank. The agency projects that it will spend
$2.3 billion on the three failures yesterday and almost $15 billion on
the failures so far this year, more than twice the total in any
previous year.

The agency said last month that it would
raise the premiums banks must pay, increasing costs for an industry
that is eager to hold on to its money.

JLA's picture
JLA
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Posts: 1
Re: Where is the FDIC with Citibank?
krogoth wrote:

Emergency Telegram to Shelia Bair from Krogoth


Hello? Shelia Bair? Where are you? Stop. Citibank, Danger! Stop. Saudi Prince funds not helping. Stop. WAMU situation. Call JPM Chase and see if they want it. Stop. Try not to show favoritism as discussed so stupidly. Stop

End of telegram

 

I have a CD for like 10k in Citibank, and while it is FDIC, should I take it out?  If so, what bank should I put it in.?

krogoth's picture
krogoth
Status: Platinum Member (Offline)
Joined: Aug 18 2008
Posts: 576
What to do with Citibank money

That's totally your decision and not for anyone here to make. Your money is insured, so don't worry, the worst case scenario is you may just need to wait a couple of weeks to get it if needed. It's a CD so I am sure its not your only savings, right? I will tell you banks like Wells Fargo are in better condition IMO.

Also, DamntheMatrix, thanks for the post here. Good info showing favoritism or abuse of power from the FDIC.

 

 

Peace

 

 

 

 

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