Well to update, hopefully the situation will be resolved in the next 24-48 hours. After going back a few times to different CS reps at the Bank, I finally got one that found the problem. Apparently something happened between Steam's Payment processor and the bank when they exchanged info. That caused the charge to fail cause of a data mismatch, but steam seemed to let the charge go through (ie it was purchased but no money actually transferred to steam cause of the data mismatch) but steam saw it as a charge back which automatically I guess suspends your account. Now the bank has to fax them some info to tell them it wasn't a charge back for fraud and then I guess steam will charge it again and the account will be restored. Still I have to wait for the bank to fax them some confirmation (24-48hours) to them then steam support to confirm it (who knows how long).
It was a long round about process that really sucks. An error between steam and the bank, you are in the middle, and nothing to do but wait around for steam support to get around to telling you what happened and then hoping to get a decent customer service rep from the bank in order for anything to actually get done.