Reminiscent of 2008 when 1 month T-bills went negative.
Wonder if these folks have ever heard of gold?
Bank of New York Mellon Corp. (BK), the world’s largest custody bank, will charge institutional clients a fee for “extraordinarily high” cash deposits to stem a flight of capital into the safety of bank deposits.
“I’ve never seen this happen, not in 25 years,” Gerard Cassidy, an analyst with RBC Capital Markets in Portland, Maine, said an interview. Other banks may follow BNY Mellon’s lead, Cassidy said.
BNY Mellon will charge clients 13 basis points, or 0.13 percentage point, on “excess amounts of cash based on June averages, which were already at elevated levels,” Joe Ailinger, a spokesman for the New York-based bank, said in a telephone interview.
The fee will apply to U.S. dollar deposits of more than $50 million per client, though it won’t “impact clients whose balances are consistent with prior averages,” according to a letter BNY Mellon sent to clients.