Short-Term Yields Going Negative As BoNY Announces It Will Charge 13 bps Fee On Deposits

Tyler Durden's picture

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tmosley's picture

13 bps will start to make people consider moving into physical gold, as the holding costs to cash become similar.

I love the smell of desperation in the morning.  Smells like opportunity.

mayhem_korner's picture

13 bps will start to make people consider moving into physical gold

...might make 'em back up the flatbed to load up some ATMs (like port-o-pottys).

Ahmeexnal's picture

Tyler, Swiss banks are already doing this too. Charging a new MONTHLY fee of 30CHF  to foreign accounts. Unless you have over 50000CHF.

Those at the bottom are getting robbed.


Pricing overview.
Additional charge for domicile abroad
(valid for all individuals above age 20
who are domiciled outside Switzerland
and the Principality of Liechtenstein)

CHF 30 per month (1, 2)
The additional charge will not apply in the following cases:
• Client relationships with total assets booked at UBS in
  Switzerland over CHF 50,000 (3)
• Clients who are domiciled in Germany, France, Italy or Austria
  if there is a regular monthly salary deposit of at least CHF 500 (4)
• Clients with a UBS numbered account
• Client relationships with UBS retained mail
• Clients with a UBS mortgage or UBS construction loan
• Clients with a UBS mandate solution
• Clients with a Pay and Save Basic Offering for young people
  or for students
• Client relationships that are exclusively a UBS rental surety
  savings account or UBS retirement account (pillars 2 and 3)
• New clients during the first three months


(1)  The additional charge will be billed for the first time at the end of June 2011 for the entire second quarter of 2011 (CHF 90 for the months of April, May and June 2011). Subsequently, the additional charge will be billed monthly.
  The extra charge is debited monthly in the same way as any account maintenance fees / offering prices that are due.

(2)  Depending on the account debited, the notification will be sent at the time of the debit or at the latest with the mailing of the account statement.

(3)  Total assets include the accumulated account and custody account assets invested with UBS under the same client (excluding UBS vested benefits accounts/custody accounts and credit card accounts). To qualify for exemption from fees, the total assets booked at UBS in Switzerland must have been at least CHF 50,000 during the entire previous month.

(4)  The salary deposits must each have been equal to at least CHF 500 during the last three months and must be made to a CHF or EUR account at UBS.

© UBS 2011. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.
UBS reserves the right to alter its prices and services at any time. These changes will then be communicated to the client in the appropriate manner.



Ethics Gradient's picture

Swiss banks are already doing this too. Charging a new MONTHLY fee of 30CHF  to foreign accounts. Unless you have over 50000CHF.

Thereby making your comment completely irrelevant to the BoNY move which is:

nothing short of outright terrorism to get everyone out of cash and into fiat-based ponzi products.

I suspect most institutions have more than 50k CHF under management.

Nice beard, by the way.

karzai_luver's picture

Is Obama serving peas at his 10K plate funding gala? Bitchezz. now pull you serfs pull!!!!!!!!!!!!

alangreedspank's picture


Mostly everyone has a better place to store cash that doesn't cost much given you'd paid the whole thing; mattress.



mayhem_korner's picture

Mattress stuffing!

vast-dom's picture

beyond outrageous!


williambanzai7's picture

This is why banks should be regulated like public utilities.

Voluntary Exchange's picture

Love your artwork William.  

But regulation isn't it.  The issue is counterfit fiat, and all other tyrannies forced by the folks who love to claim a legal monopoly on the initiation of force.  It is all about governemnt and regulation!  The way you get banks to behave is to have honest money again and eliminate the government privileged "limited liability" and every other way the banker owned government rigs the game their way.  Eliminate all governemnt interference in "money" allowing the free market again to exist and both beasts will fall. 

Then be able to go after any bank officer's personal assets if/when they can't cover their notes when they are caught defruading their depositors.  (No more government monopoly of law and justice making sure you can't recover just restitution).

Please stop sounding like a statist  and whining "regulation"  when we need to reboot the whole idea of "government", not beg the criminal class to be less criminal by begging for the criminals to pass more laws. Get the mafia (government) out of money and the natural common law systems of "justice" (such as would exist in a free market of justice)! 

alangreedspank's picture

They are already to the tune of thousands of pages of regulations, you need to be blind or willfully stupid to believe they are not. The issue is, who regulates the regulators ? Anser is: you can't. Only the threat of bankruptcy and failure can regulate a market

fallout11's picture

"Only the threat of bankruptcy and failure can regulate a market."
Sadly, not if they are "too big to fail" and backstopped by the taxpayer's wallet.

alangreedspank's picture

Of course, that goes hand in hand with what I've said.

IQ 145's picture

To me it would read as; please put your excess short term funds in London Bullion Market thirty day, or ninety day, futures contracts for Silver; which is not difficult or expensive to do. And, therefore, Fuck the Bank of New York.

Cleanclog's picture

This is how banking will make revenues in future.  All about Capital preservation not appreciation now.  

Boston's picture

T-Bill yields go negative, 2 year notes hit record lows.  The 10 year at 2.5%.


US Treasury just got the debt ceiling raised, and needs to issue hundreds of billions in net new debt.


What a coincidence!!!!

Wolf in the Wilds's picture

Yes, what a scheme to get people into US Treasury debt.  Why bother to lose money this way?  Just get out of the dollar and go elsewhere.  This is a joke!


I hope the Chinese are watching.  This is a good time to sell all their bonds.  It is pointless to stay in the dollar.

John Self's picture

Similarly, look at the new collateral requirements for derivatives under Dodd-Frank.  Coincidence that clearinghouses will be required to hold trillions in treasuries (when, under some trades, less liquid forms of collateral sufficed in the past)?

SumDumGuy's picture

"breaking the buck, breaking the buck!"  In best Beavis and Butthead voice.

Manthong's picture

They had better be careful.. there are attractive shiney alternatives out there. 

newstreet's picture

Carthago delenda est.

dasein211's picture

We only have123billion left in debt ceiling cap. This shits not gonna last til next week at this rate!

JW n FL's picture

I think the Jewish Lobby is being completely under appreciated by You ALL!!

as well the Banking Lobby has been working over time!

where is your sense of gratitude?


Our Jewish Lobby Owners..


Our Banker Lobby Owners..

Some Teachings of the Jewish Talmud

Where a Jew Should Do Evil

Moed Kattan 17a: If a Jew is tempted to do evil he should go to a city where he is not known and do the evil there.

Penalty for Disobeying Rabbis

Erubin 21b. Whosoever disobeys the rabbis deserves death and will be punished by being boiled in hot excrement in hell.

Hitting a Jew is the same as hitting God

Sanhedrin 58b. If a heathen (gentile) hits a Jew, the gentile must be killed.

O.K. to Cheat Non-Jews

Sanhedrin 57a . A Jew need not pay a gentile ("Cuthean") the wages owed him for work.

Jews Have Superior Legal Status

Baba Kamma 37b. "If an ox of an Israelite gores an ox of a Canaanite there is no liability; but if an ox of a Canaanite gores an ox of an Israelite...the payment is to be in full."

Jews May Steal from Non-Jews

Baba Mezia 24a . If a Jew finds an object lost by a gentile ("heathen") it does not have to be returned. (Affirmed also in Baba Kamma 113b). Sanhedrin 76a. God will not spare a Jew who "marries his daughter to an old man or takes a wife for his infant son or returns a lost article to a Cuthean..."

Jews May Rob and Kill Non-Jews

Sanhedrin 57a . When a Jew murders a gentile ("Cuthean"), there will be no death penalty. What a Jew steals from a gentile he may keep.

Baba Kamma 37b. The gentiles are outside the protection of the law and God has "exposed their money to Israel."

Jews May Lie to Non-Jews

Baba Kamma 113a. Jews may use lies ("subterfuges") to circumvent a Gentile.

Non-Jewish Children are Sub-Human

Yebamoth 98a. All gentile children are animals.

Abodah Zarah 36b. Gentile girls are in a state of niddah (filth) from birth.

Abodah Zarah 22a-22b . Gentiles prefer sex with cows.


I understand that anyone who posts sourced and sited facts will be considered a Nazi due to the extreme training regimen that Cable News has had us all on here in American.. I would encourage you to look past your own brainwashing and consider the facts.

SMG's picture

The cause of the world's ills are Illuminati and it's inner circle, not Jewish people.  They worship Lucifer not Yahweh.

whstlblwr's picture

Abodah Zarah?? Go to Babylonian days to make self relevant, LOL. You ridiculous piece of shit. Nice distraction from self. Look inward you find all evil you seek.

BTW, JW, any chance you part of oil cartel? What your occupation? Theory that oil business like to distract use the Jew, why not right? Easy.

SMG's picture

The source of our ills come from the Illuminati, not Jewish people.  They are the ones to blame for these calamities.

fuu's picture

<--Jew Wannabe in Fort Lauderdale

<--Just Wanking in Fucking Loserville

Number 156's picture

JW - Would you please stop copying and pasting your idiotic posts that have nothing to do with the topic!

I can sit here and blame Christians, Catholics, Muslims, Republicans, Democrats,CNN, CNBC, Fox News  and prove it too, but Id be just as off topic and look just as stupid as you. 

JW n FL's picture

I dont hate all jews..

I hate the Lobbyists! if they happen to be from Mars or Venus or where ever! I dont care I hate them too!

I hate the people who have bought and paid for the Government in the United States!

and if Israel! is one of the Owners then Fuck the State of Israel!! but it is NOT! becuase they are Jewish! it is becuase they are Lobbyists!

fuu's picture

That is not how you portray it and you know it.

lieutenantjohnchard's picture

action such as this is why i opined that the banksters may simply let gold and silver run up. their goal is stay solvent in wine, women ans song. thus, the banksters may step away from games they no longer can afford, namely fighting a losing battle of suppression. bankster priorities: women or gold?

papaswamp's picture

Shoebox savings 'accounts'...

SilverRhino's picture

All it takes in one or two of these insitutional deposits to wipe out a lot of available physical silver if they got so inclined.  

35 million bucks would clean out tulving.

Johnny Lawrence's picture

Commodities getting rocked.  Deflationary collapse, son.

hp12c's picture

The Big boys cashing out of leveraged commodities contracts to cover losses in equities...2008 all over again... PM's sinking now, time to restock...

Archimedes's picture

Market Sinking like a stone. That leverage is a bitch when it goes the other way. Barton Biggs must be agressively buying!

hp12c's picture

This proves how bad their "real" Balance sheet is....

JR's picture

Gary North quote today from Rothbard’s Mystery of Banking  on

Ultimately, as Ludwig von Mises showed, this process of central-bank credit expansion ends in one of two ways:

  1. the crack-up boom – the destruction of both monetary order and economic productivity in a wave of mass inflation – or
  2. a deflationary contraction in which men, businesses, and banks go bankrupt when the expected increase of fiat money does not occur.

JR's picture

Gary North quote today from Rothbard’s Mystery of Banking  on

Ultimately, as Ludwig von Mises showed, this process of central-bank credit expansion ends in one of two ways:

  1. the crack-up boom – the destruction of both monetary order and economic productivity in a wave of mass inflation – or
  2. a deflationary contraction in which men, businesses, and banks go bankrupt when the expected increase of fiat money does not occur.

Nothingman's picture

Did we all just fall down the rabbit-hole?  I feel like I'm falling up.

Franken_Stein's picture


Oh my God !

We are ALL gonna die !



VisualCSharp's picture

Well, you know what they say...

On a long enough timeline...

Argos's picture

Only for deposits over $50 Million.

CrankItTo11's picture

On a long enough timeline, the survival rate for F5 drops to zero. 

CrankItTo11's picture

Dow -300... we're definitely going to end green for the day. hahahaha.

GeneMarchbanks's picture

This'll have Unintended Consequences 101 as Tyler so well understands.

Yardstick of Civilization's picture

Guys, remember 2008?  We all thought the world was ending.  I'm buying pullbacks in gold, as we will likely see short covering/profit taking in ES at some point soon.  The Fed is running out of tricks to keep the Ponzi going but the question that has to be asked is this: How many times can a dead cat bounce?  And how high?  Does anyone think we won't see S&P above 1,350 again in a relatively short period of time?