Article

2011-08-04 Economy

Negative interest achieved; Banks to start charging customers for excessive cash balances

Bank of New York Mellon Corp. is preparing to charge some large depositors to hold their cash, in the latest sign of global economic worries. The big U.S. custodial bank said this week in a note to clients that it will begin slapping a fee next week on customers that have vastly increased their deposit balances over the past month. The fee is to offset costs incurred by banks holding funds (such as the fee they must pay to FDIC to cover its depositors insurance fund), versus interest paid on very short term loans, which fell below 0% today.

The Federal Reserve has flooded the financial system with cash in its ~~backfiring~~ attempt to ameliorate the ~~depression~~ recession and promote ~~an illusion of~~ economic recovery. But ~~beneficiaries of Fed largess~~ banks and investors are reluctant to ~~throw it away~~ put that cash to work because they are worried about the economic outlook. With no other place to put it, they are parking it in banks. Clients with average monthly balances > $50 million will be affected by the new charges. Other conditions will apply to whether or not charges will be assessed.
Mattress, don't fail me now

Posted by Anguper Hupomosing9418 2011-08-04 13:43|| || Front Page|| [11134 views ] Top

#1 Isn't that why the Fed created inflation?

Posted by Chesh Panda5654 2011-08-04 15:36|| 2011-08-04 15:36|| Front Page Top

#2 A New York bank that won $3 billion in taxpayer bailout money was hired by the government to monitor all banks that pocketed public cash - including itself. Guess who?

Posted by Procopius2k 2011-08-04 16:05|| 2011-08-04 16:05|| Front Page Top

#3 Translation:
Sell Dollars Buy Gold
Sell Dollars Buy Gold
Sell Dollars Buy Gold
Sell Dollars Buy Gold
Sell Dollars Buy Gold
Sell Dollars Buy Gold
Sell Dollars Buy Gold

Posted by Bright Pebbles 2011-08-04 17:34|| 2011-08-04 17:34|| Front Page Top

#4 This most truely is the Great Contraction II.

Posted by newc 2011-08-04 17:54|| 2011-08-04 17:54|| Front Page Top

#5 Like the first Great Depression, government meddling made it worse and last longer.

Posted by JohnQC 2011-08-04 18:18|| 2011-08-04 18:18|| Front Page Top

#6 Leading report on tonight's ABC news:
"There is real fear on the Street tonight."

Posted by Anguper Hupomosing9418 2011-08-04 18:32|| 2011-08-04 18:32|| Front Page Top

#7 Opinion from the Daily Telegraph about the inaction of the Euro Central Bank over the spiking interest rates on Italian & Spanish sovereign debt: The fiscal canon is exhausted and policymakers are struggling to find alternatives. Not since the deepest days of the banking crisis, when we were looking into the abyss of a second Great Depression, have things looked so scary. Policy seems impotent before the storm.

Posted by Anguper Hupomosing9418 2011-08-04 18:40|| 2011-08-04 18:40|| Front Page Top

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