#1 RACE TO CASH: Bank imposes fee on rapidly growing deposits...
08-04-2011, 06:55 PM
- Join Date
- Aug 2005
(Reuters) - Bank of New York Mellon Corp told some of its biggest depositors this week it does not want their money.
BNY Mellon said it is charging a fee to big corporate and asset management clients that deposit more money than average, because it has been overwhelmed by deposits.
Global economic turmoil -- including the Greek debt crisis and the U.S. debt ceiling debate -- has driven BNY Mellon's large clients to sell riskier assets and move the proceeds to deposit accounts.
The flood of cash is likely to raise BNY Mellon's U.S. deposit insurance fees and could weaken capital ratios, which are partly based on liabilities such as deposits.
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