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Posted by on Feb 20, 2010 in Business, TG Roundup

Adios, CitiBank

CitiBank’s stock price revisited the level at which a massive secondary was issued in late 2009 ($3:15). The secondary was issued so that they can get out of TARP and issue bonuses. Now it recovered some. Is Citibank in trouble again?

The following is via Seeking Alpha:

Seen on a recent Citibank (C) statement: “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.”

…..

I called Citi about it and they said the warning applies only to customers in Texas and that the notification had been mistakenly included on statements nationwide. Whatever the explanation, it doesn’t exactly inspire confidence in Citi.

Comedian Bill Maher calls CitiBank, “ShittyBank.” Personally, I had it with this bank. I had their credit card for many years – they just told us that they will start charging us annual fee. It doesn’t matter if they will refund it when we charge more than $2500 per year. We are walking out on them and probably seek a visa card from a local credi union.

  • Imagine a nursing mother with twin kids
  • Now imagine a blood-sucking leech sucking on her one breast
  • Now imagine all the milk was sucked and then the leech started sucking her blood
  • The leech did not have enough from one breast. It reached out for the other breast with a straw to suck more from her
  • Now, image us as that mother. What the mother makes as milk goes to the twins: the tax man and the family
  • The leech sucked as much as blood as it can from the tax side
  • Now it stuck the straw into the other side for more blood
  • That leech is any major bank. JP Morgan Chase, Goldman Sachs, Citi Bank or whatever
  • To me, their charging annual fee on my credit card is the metaphorical last straw (the classic metaphor or as a metaphor in this example – ah, the power of English!)

Adios, ShittyBank!