Possible Cash-in Charge?

Bloomberg.com has an article today (8/5/11) titled "BNY Mellon to Charge for Large Deposits". The article states: "[T]he fee will apply to U.S. dollar deposits of more than $50 million per client, though it won’t “impact clients whose balances are consistent with prior averages,” according to a letter BNY Mellon sent to clients. It also states: “I suspect more banks will do this for their wholesale customers, saying we love you guys but every dollar you put in here costs us money,” said Bert Ely, a banking consultant in Alexandria, Virginia. “I’m not sure that this has ever happened in the U.S.”

The article actually also appeared on bloomberg.com yesterday under a title relating to money market interest rates, and Michael Savage mentioned it yesterday on his radio program.

I realize this fee apparently applies to very large cash deposits, and also to wholesale customers; but I don't like the philosophy behind it, and I hope it's not adopted by other banks, and for smaller deposits.

Any thoughts?

Doubt it will happen to regular folks. It seems to be a knee jerk reaction to the massive pull out of the stock market into cash out of fear. Dont expect banks to start charging because people will take their money OUT. And there will be at least ONE bank that wont charge and then will get all the business fromt he banks that did. So dont sweat it.