Clearinghouses/custodians

Bank of New York basically controls the market for clearing Treasuries and repos after Chase withdraws; compliance pushed back to July 1, 2019.

In times of economic stress, customers tend to flood the U.S. banking system with deposits. But the leverage ratio penalizes banks for conducting this core banking function.

It’s not speed, which will steadily if not exponentially increase in the near term. It’s the centralists that are holding onto their roles as reconcilers of data.

The custody bank also won $109 billion worth of new asset-servicing business in the quarter, which pushed assets under custody to over $30 trillion.

JPM snatches $1 trillion custodian business from long-time holder State Street; Harvard will lay off half of the employees managing its $35.7 billion endowment.

Northern Trust’s fourth-quarter profit surged due to higher trust fees, improved credit quality and the benefit accrued to its profit margin from an increase in short-term interest rates.