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Subject:  Which GG stocks carry ADR fees? Date:  11/15/2010  9:52 PM
Author:  jambenfool Number:  194 of 196

Hey there, fools.

Let me start by restating that National Bank of Greece (NBG) is NOT a GG pick -- it was discussed as a speculative play in the April GG newsletter, but that hasn't worked out very well -- and that's life.

This post is not so much about NBG as it is about NBG's ADR bank, New York Mellon Bank, which has the gall to charge (at least US) shareholders an ADR fee. Somewhere in the prospectus there was a statement that they could charge this fee, but my understanding was that it could only be charged when the stock paid cash stock dividends (those of us who were not able to receive the October 2010 NBG stock dividend got cash instead). According to a Charles Schwab report, a recent Securities Exchange Commission ruling allowed ADR banks to charge this fee when one of its foreigh stocks pays a dividend.

For a stock that had dropped 50% in six months and suspended its regular dividend, New York Mellon Bank has a lot of gall to load shareholders who have already taken it in the shorts with this additional charge.

My question is this: Which of the recommended GG ADR stocks permit this ADR charge - since they are at the discretion of the ADR bank, I want to avoid them, or at least factor them into my analysis of yield. I wish we could use our power as investment consumers to send a message to NY Mellon Bank and their ilk that these fees are unacceptable on miserable performers.

Sorry to make this first GG post sound so grumpy. I've enjoyed and profited from several of your picks, and enjoy the newsletters!
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