Earlier this month it was reported Bank of New York Mellon will begin charging its largest customers (e.g. corporations and large institutions) a fee for deposits in excess of $50 million. Recently, I have received several questions as to why a bank would charge its customers for deposits. While this seems counterintuitive to some, in the banking world a sudden influx of cash deposits is not necessarily a good thing.
As a result of the global economic uncertainty and the renewed concerns of some major European financial institutions, several major U.S. banks have experienced an influx of deposits. When a …Read More