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Bank Of New York Mellon To Slap Fees On Big Deposits Following "Global Dash For Cash"; When Was Hyperinflation Supposed To Start?

Thursday, August 4, 2011 - 4:38 PM
When was hyperinflation supposed to start?

Oh, I just remembered: 2011, a year chosen by at least a couple people. Others expect it next year.

Hyperinflationists simply do not understand the role of credit in a global economy. China has a huge inflation problem and various property bubbles because credit growth is soaring 30% annually.

In the US, banks want credit-worthy borrowers. However, credit-worthy borrowers are parking cash, not asking for more of it.

Mike "Mish" Shedlock

MikeMike327 posts since
Feb 22, 2010
Rep Points: 876
1. Friday, November 25, 2011 - 4:55 PM
Bank of New York Mellon appears to have flinched - at least for the moment.  The bank has not assessed a penny since warning clients about the possible deposit fee in early August, although it remains burdened by cash that it cannot profitably redeploy at rock-bottom interest rates.  The fee of 0.13 percent was to have taken effect on August 8 for accounts with more than $50 million that had soared well above their monthly averages as clients fled short-term investments for the safety of U.S. banks.

However, unlike Bank of America, which withdrew a plan to charge its customers $5 for debit card transactions after public ridicule, Bank of New York said that its super-sized version of its deposit fee is not dead and while they haven't charged any clients to date, the policy remains in place as markets remain unsettled and interest rates remain at historic lows.

pearlbrownpearlbrown1,433 posts since
Nov 2, 2010
Rep Points: 6,255