X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Over the past four years, the increasingly desperate scramble for credit has cost corporate treasury staffs a lot of independence when it comes to dealings with their bankers. The price for scarce credit has not been high interest rates, but rather business packages that channeled cash management, custody, pension and investment banking services to the most generous lender rather than the best service provider. The practice has been pervasive enough to capture the attention of the Federal Reserve, which earlier this year put out guidelines on what qualifies as bank tying–that is, the illegal act of predicating offers of credit upon the award of other fee-based business–and even fined one particularly egregious transgressor.

Now, after nearly a decade of negotiating with banks from a steadily deteriorating position, the most alert corporate CFOs and treasurers have noticed that power is shifting, and naturally they are seeking ways to take advantage of what they perceive as newfound leverage. “The pendulum is starting to swing in favor of corporate treasuries. Banks are still in control of relationships, but that is about to change,” says Anthony J. Carfang, a founding partner of Chicago-based Treasury Strategies Inc.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

 

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2022 ALM Global, LLC. All Rights Reserved.