Banks including J.P. Morgan Chase & Co., Citigroup Inc. and Bank of America Corp. are telling their largest customers, including large companies and hedge funds, that they will begin charging fees on accounts that have been free in the past, the WSJ reports. The moves are a result of new regulations that make it onerous for banks to hold large deposits. The regulations are intended to safeguard the financial system, but in the process will force companies to look for alternatives to the bank.
U.S. banking rules set to take effect Jan. 1 compound the issue, especially for deposits that are viewed as less likely to stay put at the bank through challenging times.
Some bankers are advising corporate clients to break up large deposits across several banks, including smaller ones not affected by the new rules. Others might be attracted to other products offered by banks or being created by asset managers. And some are negotiating for a reduction in the fees. How is your business planning to store its cash in the coming year? Send us a note to let us know.
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