- BlackRock's move of more than $1B in custody assets to JPMorgan (JPM +1.4%) from State Street has the latter lender down by nearly 4%.
- BNY Mellon (BK +0.6%) and Northern Trust (NTRS +0.5%) are ignoring the news, but Evercore ISI's Glenn Schorr suggests they don't, as this could be a "multiple limiting event" for the big custodial banks thanks to added fee compression and less leverage to higher rates.
- As for JPMorgan, it's a "big win," says Schorr as it shows its trust services are on par with the likes of STT, BK, and NTRS. The Bank of Dimon will also have the opportunity to leverage the relationship with BlackRock into other banking services.
- Source: Bloomberg