Citibank Blocks Start-up’s Bank Account, Cites Objectionable Content on Company’s Blog
According to “Citibank Closes Start-ups Bank Account”, TechCrunch, in a bizarre incident, Citibank, the private consumer banking arm of Citigroup Inc. (NYSE: C), closed a bank account of a new start-up, Fabulis, citing “objectionable content” on the company’s own blog. Fabulis is a new social network that helps gay men connect with people around the world.
This latest start-up is from serial Internet entrepreneur Jason Goldberg, who started Jobster and was involved in several stints at the White House, AOL (NYSE: AOL) and T-Mobile. Goldberg said that the company account was closed without Citibank informing anyone at Fabulis and were told about the “objectionable content” on the phone when contacted. Later, the block on the account was released but a compliance officer was asked to review the company’s blog.
Banks need to learn that they are custodians of other people's money, and not owners. If a bank can block the account of a private individual or a company for a reason like this, its no wonder the country's banking system is failing us.
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