BNY Mellon's Hassell Flinches on Deposit Fee or Does He?
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Monday, November 28, 2011

BNY Mellon's Hassell Flinches on Deposit Fee or Does He?

Bank of New York Mellon hasn't started charging deposits to some of its biggest cash clients like money market mutual funds, but is the policy dead? Reuters' Jed Horowitz reports that the custodian "has not assessed a penny since warning clients about the possible deposit fee in early August," yet a spokesman for BNY Mellon insisted that the firm isn't backing off.

"We haven't charged any clients to date," BNY Mellon spokesman Ron Sommer reportedly told the wire service, "and the policy remains in place as markets remain unsettled and interest rates remain at historic lows."

The 13 basis-point fee was originally slated to start on August for some clients with more than $50 million in cash deposits with the bank, when the bank's cash deposits boomed to about $250 billion. Reuters notes that the fee plan started under former BNY Mellon CEO Robert Kelly, who was succeeded in September by Gerald Hassell.

Treasury Strategies chief Anthony Carfang, RBC Capital Markets analyst Gerard Cassidy and TD Ameritrade chief financial officer William Gerber (a BNY Mellon cash client) all weighed in for the article.

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