Several stories now out on the Google that Bank of New York Mellon is getting so much cash from large depositors that it is charging them for putting money into the bank!
the more cash a bank has, the more it has to pay FDIC premiums to insure that much money, is essentially the bottom line of the problem.
The other part of the problem is that large cash investors are seeing NO safe haven to invest in, so are going all cash.
" Over the past two weeks, money-market funds, corporate treasurers and investment houses have pulled money out of securities that mature in more than one day in favor of stashing their cash in bank accounts at Bank of New York and other banks with custodial operations like J.P. Morgan Chase Co. (JPM), that earn no interest, but which are insured by the Federal Deposit Insurance Corp.
Custody banks are typical havens when financial markets go haywire. They act as protectors of assets, cash and securities held as collateral for short-term loans for their clients, and they process payments and settle trades in the repo market. Money-market funds, banks, hedge funds and other institutional investors can easily move money at their custody banks in short periods of time.
Bank of New York's move is emblematic of much broader strains that plague the U.S. economy and the global financial system. In response to the recession and anemic recovery, the Federal Reserve has pushed interest rates to zero and purchased $2.6 trillion of mortgage and Treasury securities. In the process, it has flooded the financial system with cash."
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201108041319dowjonesdjonline000555&title=wsj-2nd-updatebny-mellon-charging-large-depositors-to-hold-cash
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