Long Delays in Citibank Wire Transfers
Feb 25, 2009
I received this letter today in response to my posting on Citibank's problems. I think you will find it interesting. I don't know if this is a local problem with a particular bank, but I think it is more likely that it is a world-wide problem with Citibank itself. If so, it could be an indicator that the run on Citibank has either begun, or Citibank is attempting to block such a run.
I got this yesterday from a friend (whom you have met at our Atlanta meetings) who moved to South America last year. I've changed names to protect identities.
Many of you know that my old friend Bob Allen is down here now for the harvest (la cosecha) which is in full swing now. Many farm (finca) owners are here to oversee their harvest and also to enjoy the South American summer months.
Yesterday, Bob's accountant was at one of the local banks attempting to facilitate a wire transfer from CitiBank. Bob was waiting for him to finish to go to an important meeting with his plum processor and the accountant was over 1.5 hours late.
When the accountant finally arrived he told Bob that the reason he was held up at the bank so long was the problem he had isolating the problem with the greatly delayed wire transfer. He was told, point blank, that CitiBank was UNABLE TO COMPLETE ANY WIRE TRANSFER FOR THREE WEEKS!
I know nothing more than this aspect of the story or what that policy might indicate BUT, I certainly have some suspicions! Take it for what it's worth.