(Washington)

In a new bill to help small US banks, some of the biggest beneficiaries are exactly the opposite. The new bill is set to raise the threshold for strict oversight from regulators to $250bn in assets (up from $50 bn). However, three huge custody banks—BNY Mellon, State Street, and Northern Trust—will also see a major benefit. Because of their custodial structure they will be able to exclude some deposits, pushing their total deposits down under the $250 bn threshold. This development seems likely to boost earnings per share at the custodial banks by 8%.

FINSUM: Talk about regulation going right for these banks.