JPMorgan tells hedge fund clients to leave or pay for deposits

Hedge Fund

JPMorgan has told some hedge-fund clients that they’ll have to take their deposits elsewhere or pay to keep the accounts, a person familiar with the matter said.

Bloomberg News reports that new liquidity and capital requirements, as well as an increase in operating expenses, are pushing the bank to charge for some short-term accounts, said the person, who asked not to be identified because the discussions are private.

Deutsche Bank has talked with some customers about possibly making changes to deposit accounts as costs rise, a person familiar with the firm’s plans said, adding that the discussions are continuing.

The Wall Street Journal reported earlier that Citigroup, HSBC and Bank of America also told some clients that new regulations are making deposits less profitable. The newspaper cited unidentified people familiar with the matter.

To access the complete Bloomberg News article hit the link below:

JPMorgan Said Among Banks Telling Clients to Take Cash Elsewhere

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