Those who fail to learn from history are doomed to repeat it. I think George Santayana said that or something close. But he actually stole it from Hegel, who wrote, “What experience and history teach is this—that people and governments never have learned anything from history.” But leave it to Kurt Vonnegut to really drive it home: “History is merely a list of surprises. It can only prepare us to be surprised again.”
So it should be merely surprising that the banks appear to be up to some sort of shell game again. My wife and I bank at a smallish local bank for the sole reason that most of the money stays in the community. Earlier this week, I found the following atop my checking account statement:
EFFECTIVE 10/14/04: FOR REGULATORY AND ACCOUNTING PURPOSES, WE ARE CHANGING THE METHOD IN WHICH OUR RESERVE REQUIREMENTS ARE MAINTAINED WITH THE FEDERAL RESERVE BANK. YOUR ACCOUNT WILL CONSIST OF TWO SUB-ACCOUNTS AND WE MAY TRANSFER FUNDS BETWEEN THEM. THE RESTRUCTURE WILL OCCUR SOLELY ON OUR BOOKS AND WILL NOT AFFECT YOUR BALANCE, INTEREST, FEES, STATEMENT OR USAGE IN ANY WAY. AS REQUIRED BY REGULATION D, WE RESERVE THE RIGHT TO REQUIRE 7 DAYS NOTICE BEFORE PERMITTING WITHDRAWALS; HOWEVER, WE DO NOT PRESENTLY EXERCISE SUCH RIGHT. FOR DETAILS CALL XXX-XXX-XXXX.
Okay, I’ve seen scams like this on the television and I don’t want to play.
I’ve looked at Regulation D and I can’t find anything resembling a requirement that restricts customer withdrawals.