J.P. Morgan Chase & Co. is preparing to charge large institutional customers for some deposits, citing new rules that make holding money for the clients too costly, according to a memo reviewed by The Wall Street Journal and people familiar with the plan.
J.P. Morgan is making the moves because certain deposits are less profitable to handle than they used to be. New federal rules essentially penalize banks for holding deposits viewed as prone to fleeing during a crisis or a stressed environment.
Market Watch
Wall Street Journal
Let's see.... I give you my money, you give me some trivial amount of interest, turn around and loan it out for 5, 10, 15%... and it's too costly? I got news for you J.P, you're not doing it right.
How long do you think it will take for this to trickle down to retail accounts?
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