Mellon To Charge Large Cash Depositors Amid Global Economic Woes


The Bank of New York Mellon Corp. recently told its clients that certain large depositors will be charged a new fee.

According to Dow Jones Newswires, Mellon said that those who have deposited large quantities of cash over the last four weeks will be charged. The bank – which the news source reports is the largest custodial bank in the United Stats – said that the fee was due to the large amounts of deposits it has received in recent weeks due to both individual investors and corporations withdrawing their money from markets due to financial woes in many countries.

Bailouts were given to European nations Ireland and Greece, which may need to be given another round of funds. In addition, Italy, Spain and Portugal may also need economic aid.

On the other side of the Atlantic, the United States' sterling AAA credit rating was downgraded to AA+ by Standard & Poor's. The ratings service said that it made the decision because it feels that the nation's leaders do not have a realistic plan for reducing its $14 trillion in debt.

These crises have apparently led to many investors pulling their money out of markets and placing them in banks.