* Custodian bucks trend on charging extra fee on cash
* Northern Trust looks to tap "millionaire" market
NEW YORK, Sept 13 A top executive with Northern
Trust Corp (NTRS.O) said the custodian bank will not impose an
additional fee on institutional clients who significantly
increase their cash holdings.
Rick Waddell, Northern Trust's chairman and chief executive
officer, said he has no problem with instititutional customers
using the bank's balance sheet to dump cash after moving out of
"We allow our clients to use the balance sheet even when we
can't earn money at it," said Waddell, speaking at the Barclays
Capital Global Financial Services Conference in New York. "It
serves us over the long term."
Northern Trust's position contrasts with Bank of New York
Mellon (BK.N), the world's largest custodian bank. In August,
BNY Mellon told customers it would slap a fee on some of its
biggest clients for making large, so-called "transient"
deposits in a flight to safety as the global financial markets
At the conference, Waddell said Northern Trust is taking
steps to expand its business of managing money for wealthy
individuals. He said the bank is specifically going after the
growing millionaire population in the Washington, D.C. area,
where it will soon open up an office.
"We want to be in front of the millionaire market," he
Waddell also said that despite all the news surrounding the
European sovereign debt crisis, Northern Trust's European
business hasn't been affected much.
(Reporting by Katya Wachtel, edited by Matthew Goldstein, Dave