JPMorgan To Charge Hedge Funds On Deposits

Dec 9 2014 | 12:51pm ET

With new regulations making deposits both less profitable and more onerous, JPMorgan Chase has reportedly told some hedge-fund clients to take their business elsewhere.

The bank has informed customers that it will begin charging fees to keep some short-term deposit accounts open, Bloomberg News reports. JPMorgan’s move comes as it and other banks struggle with the implications of new liquidity and capital requirements—rules that classify large, uninsured, short-term deposits as risky and requiring larger reserves.

Deutsche Bank has also discussed possible changes to its deposit accounts, according to Bloomberg. In addition, Bank of Ameria, Citigroup and HSBC have each told clients that the new regulatory environment has made deposit-taking less profitable, The Wall Street Journal reports.


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