Tuesday, January 8, 2008

Citigroup to cut work force and limiting customer withdrawals

Citigroup Seen Cutting Work Force by 5%-10% :

On the heels of a very curious move by Citibank to decrease the amount of cash allowed by Citibank customers to withdraw from their ATMs, word now comes that Citi may cut its workforce bt 5% to 10%

“Here’s a story that’s flown under the radar,” notes Dan Denning. “Citibank told customers in December that outgoing wire transfers from the bank’s accounts would be limited to just $2,000 per day.

“But wait, there’s more,” Dan tells us. “Last week, under the guise of responding to a wave of fraud from automated cash machines, Citi also announced a limit on cash withdrawals from its ATMs in New York City.

“And you thought the money in your bank account was yours.

“There could be a perfectly reasonable explanation for all of this. But the simplest explanation is almost always the best. Citibank is in desperate need of its capital. The best way to keep your customers’ money is to prevent them from taking it out of the bank. It’s a kind of low-level, mild-mannered capital control.”

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