Negative interest begins: U.S. banks begin charging customers to hold their deposits
by: J. D. Heyes
NaturalNews.com
Thursday, March 26, 2015
Since the Great Recession of 2008, something strange has been happening to the country’s financial sector, and banking in particular. As in, there is little about the sector that resembles “banking” these days, at least in the sense that most Americans understand it.
Even before 2008, Americans were being given fewer and fewer reasons to deposit their money in banks. For example, the amount of interest you could earn on your deposits has been falling for decades.
Now, following years of Federal Reserve- and taxpayer-driven bailouts, as well as cumbersome new financial regulations passed in 2010, the banks have had established a revenue flow outside of normal banking activities such as earning interest from loans — so much that they figure they can begin charging for services that define their existence in the first place.
As reported by The Wall Street Journal, some big banks like JPMorgan Chase & Co. are going to start penalizing bigger clients for bothering to use them as a place to stash their money. What’s more, the action is liable to cost the big banks a lot of money — money that they apparently can afford to lose because, again, they’re getting fed more by the Fed these days than by customers [not to mention that they don’t need deposits, since they create new money for loans]:
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.
Banks penalized for taking deposits?
The Rest…HERE
