Jump to content
House Price Crash Forum
scepticus

Nirp Warning, Nirp Warning

Recommended Posts

NIRP! NIRP! NIRP!

Thursday, August 04, 2011 10:54:35 AM RTRS – BNY MELLON SAYS TO CHARGE FEE ON “EXTRAORDINARY” DEPOSITS; TRADERS CITE THIS FOR US T-BILL DEMAND BK.N

Thursday, August 04, 2011 10:58:09 AM RTRS – BNY: FEE IN RESPONSE TO “SUDDEN, SIGNIFICANT INCREASES” IN BNY’S BALANCE SHEET FROM CLIENT DEPOSITS BK.N

Thursday, August 04, 2011 11:00:33 AM RTRS – BNY SAYS FEE ON CERTAIN ABOVE-AVERAGE DEPOSITS WILL TAKE EFFECT ON AUG 8 BK.N

http://ftalphaville.ft.com/blog/2011/08/04/643571/the-cash-killing-bny-mellon/

NIRP! NIRP! NIRP!

Told ya so folks! :lol:

Share this post


Link to post
Share on other sites
Jim R | August 4 4:40pm | Permalink The ponzi is teetering and extreme measures are warranted. Pretty soon they may ban mattresses.

:D

Time to crack open the tuna chunks?

Share this post


Link to post
Share on other sites

NIRP! NIRP! NIRP!

Thursday, August 04, 2011 10:54:35 AM RTRS – BNY MELLON SAYS TO CHARGE FEE ON “EXTRAORDINARY” DEPOSITS; TRADERS CITE THIS FOR US T-BILL DEMAND BK.N

Thursday, August 04, 2011 10:58:09 AM RTRS – BNY: FEE IN RESPONSE TO “SUDDEN, SIGNIFICANT INCREASES” IN BNY’S BALANCE SHEET FROM CLIENT DEPOSITS BK.N

Thursday, August 04, 2011 11:00:33 AM RTRS – BNY SAYS FEE ON CERTAIN ABOVE-AVERAGE DEPOSITS WILL TAKE EFFECT ON AUG 8 BK.N

http://ftalphaville.ft.com/blog/2011/08/04/643571/the-cash-killing-bny-mellon/

NIRP! NIRP! NIRP!

Told ya so folks! :lol:

Just short term price gouging by the bank, whilst it has the opportunity.

Share this post


Link to post
Share on other sites

Bankers and investors reluctant to spend it shock horror.

Shocking that they've hoarded cash rather than spend it.

I sometimes wonder if the money had gone to the proles whether we might be in a better position with the Fed constantly hoovering up the cash again.

Still far better to give cash to the experts at the banks who've then gone on to flood the wider economy with liquidity.

I wonder how much of this has gone on bets on food price and oil price and any crash is about to wipe out these bets?

Edited by interestrateripoff

Share this post


Link to post
Share on other sites

Just short term price gouging by the bank, whilst it has the opportunity.

They have to pay increased FDIC premiums as their deposits increase so it's costing them money hence the fee, I'm sure there is a small spread though!

I met and spoke with someone who works there a few months ago and she was telling me how during Lehmans all kinds were calling them desperate to deposit billions with them. While there is fear people will pay to park their money.

Share this post


Link to post
Share on other sites

They have to pay increased FDIC premiums as their deposits increase so it's costing them money hence the fee, I'm sure there is a small spread though!

I met and spoke with someone who works there a few months ago and she was telling me how during Lehmans all kinds were calling them desperate to deposit billions with them. While there is fear people will pay to park their money.

WHat is it about BNYM that makes it the destination of choice for HNW individuals looking for a tax-payer protected shelter for their loot?

Share this post


Link to post
Share on other sites

WHat is it about BNYM that makes it the destination of choice for HNW individuals looking for a tax-payer protected shelter for their loot?

They are the largest custodian in the world, $20 trillion AUM, and they are seen as being close to the New York Fed i.e there is an implicit backstop, AAA rated as well.

Share this post


Link to post
Share on other sites

They are the largest custodian in the world, $20 trillion AUM, and they are seen as being close to the New York Fed i.e there is an implicit backstop, AAA rated as well.

Thanks. But what do you mean by 'custodian'?

Share this post


Link to post
Share on other sites

Thanks. But what do you mean by 'custodian'?

They provide custody services for hedge funds, asset managers, pension funds etc. Basically they hold their assets in bankruptcy remote Escrow accounts and manage all their paperwork, transfers and settlements for them, think of them as warehouses. Their assets are separate to those of BNYM should it fail, as BNYM is a service provider rather than risk taker type of bank, this gives them an added level of comfort.

Share this post


Link to post
Share on other sites

They provide custody services for hedge funds, asset managers, pension funds etc. Basically they hold their assets in bankruptcy remote Escrow accounts and manage all their paperwork, transfers and settlements for them, think of them as warehouses. Their assets are separate to those of BNYM should it fail, as BNYM is a service provider rather than risk taker type of bank, this gives them an added level of comfort.

Thanks again. And what would be typical profiles of BNYM's loan customers?

Share this post


Link to post
Share on other sites

Thanks again. And what would be typical profiles of BNYM's loan customers?

They're not like a traditional bank, they don't really make loans to businesses as such, they may loan securities or bonds, or do trade finance to help customer's liquidity needs for example. They are a service provider rather than a traditional deposit taking / loan making bank.

Share this post


Link to post
Share on other sites

They provide custody services for hedge funds, asset managers, pension funds etc. Basically they hold their assets in bankruptcy remote Escrow accounts and manage all their paperwork, transfers and settlements for them, think of them as warehouses. Their assets are separate to those of BNYM should it fail, as BNYM is a service provider rather than risk taker type of bank, this gives them an added level of comfort.

So you reckon State Street, their main competitor in the custody space, will follow suit shortly?

Share this post


Link to post
Share on other sites

So you reckon State Street, their main competitor in the custody space, will follow suit shortly?

Quite probably - I expect that it is sitting on huge balances at present.

At lot of the money will have come from the "money market funds" that they run. Of late, investors have been pulling out of them and holding the money in cash.

I expect that BNYM and the like keep most of the cash at the Fed overnight.

Share this post


Link to post
Share on other sites

So you reckon State Street, their main competitor in the custody space, will follow suit shortly?

Would expect so if they are getting the same rush of deposits, they also have to pay the FDIC premiums.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.