Is CitiBank Ready for a Collapse?

January 10th, 2008 • Related • Filed Under

Is CitiBank Ready for a Collapse?Think a company as large as Citigroup (NYSE C) can’t fail? Only a few months ago, one of the largest online banks, NetBank, closed its doors, leaving billions of dollars in account holder funds in question. Fortunately, the FDIC stepped in and made arrangements for ING to pick up the pieces but what if it happens with over $1 Trillion in assets?
 
So here’s the gist of the story:
 
CitiGroup has just gone international asking for the assistance of foreign capital.
 
Rumor has it that Citi has privately asked the Federal Reserve for an emergency rate reduction across the board. While several banks are seeking this, with the backend channels and political clout that Citi carries, it just may happen.
 
CitiBank has just locked out millions of ATM cardholders from ATM withdrawals. While the company’s spokesperson has denied such claims, the fact is that cardmembers in major cities have been capped on their day to day withdrawals. Citi claims this was caused by a “recent” increase in ATM PIN based fraud.

Rumor has it that mortgage related losses to be reported next week could be much higher than expexected only a few weeks ago.
 
Only yesterday, we announced that First Data and Citi moved to hold funds from several legitimate merchants around the country. The company’s official response has been that the move has been its policy all along.
 
Unless the Federal government steps in, this could be the largest bank closure in history. My only question is: Will the Feds be able to pick up the pieces on this one?

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There Are 11 Responses So Far. »

  1. Comment by Eleven12 on 11 January 2008:

    Big companies have big risks of closing doors, as they deal with multi millionaire/billionaire transactions, I hope that doesn’t happen to citibank, I think they’re great

  2. Comment by Yoka on 11 January 2008:

    I got a call from citibank last week, they offered me a card and everything, I accepted it, just waiting for it to arrive, they’re a pretty big company, but business are business and they may close up from night to day, no matter how big they are

  3. Comment by Older88 on 11 January 2008:

    I don’t know, these companies deal with large amounts of money, but they also deal with big insurances, in case of a loss, don’t they?

  4. Comment by Kaiomy on 11 January 2008:

    I hope they do not collapse lol, they are a great company, at least for me, I can’t imagine what it would be like if a company like Microsoft collapsed, it would be such a huge mess!

  5. Comment by Aura on 12 January 2008:

    If such big company collapses, there is plenty of investors to jump in with money to recover it, as it is such a famous brand, so I wouldn’t worry so much

  6. Comment by iain uk on 14 October 2008:

    i can,t wait for them to collaspe they are vile scum company

  7. Comment by sherman on 26 February 2009:

    Citi is bound to fail, it should break up and sell itself. If not nationalization should be the better choice.

  8. Comment by citicardholder on 17 March 2009:

    let them go, i have a citicard and want it wiped, let them die.

  9. Comment by Mike5969 on 25 March 2009:

    yo you faggot, that doesn’t mean you balance just dissapears, it just gets put into the hands of another party, usually the gov’t. they you got them on ur ass for the payment, dumbshit. read a book you worthless asshole.

  10. Comment by Mark Elsevier on 29 March 2009:

    If you get your wish, and they collapse, what affect do you think it will have on you? If you think it won’t then you are just fooling yourself. The best thing that could happen right now is for the market to recover and the businesses would start lending again. What they should have done with the mortgage problem was simply cut everyone a break and roll the second mortgages into the primaries and keep it as a fixed loan at what ever the primary payment was. The banks wouldn’t have gotten the huge payoffs but the economy wouldn’t be in such turmoil right now either. This is worst than any terrorist action. First they make us doubt our safety with mass transit. It had some affect. Then they attached our money and it brought us to our knees. But know this, that in the last days critical times hard to deal with will be here. For men will be lovers of themselves, lovers of money, self-assuming, haughty, blasphemers, disobedient to parents, unthankful, disloyal, having no natural affection, not open to any agreement, slanderers, without self-control, fierce, without love of goodness, betrayers, headstrong, puffed up with pride, lovers of pleasures rather than lovers of God, having a form of godly devotion but proving false to its power; and from these turn away. For from these arise those men who slyly work their way into households and lead as their captives weak women loaded down with sins, led by various desires, always learning and yet never able to come to an accurate knowledge of truth. Who do you follow?

  11. Comment by Raja Amer Khan on 30 July 2009:

    I have an account at citibank and I’m loving their services. I wish they don’t close.

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