Sign In
Sign In
A perfect storm could be brewing for treasuries with lots of cash. Companies have unprecedented amounts of accumulated cash sitting in bank accounts, protected by unlimited Federal Deposit Insurance Corp. coverage if the accounts don’t earn interest. But the Transaction Account Guarantee (TAG) program that provides this safe harbor is set to expire at year-end. Normally the cash could flow into money-market fund (MMF) accounts, treasurers’ favorite alternative to bank balances, but the Securities and Exchange Commission is weighing new regulations for money funds that many treasury executives say would make them toxic. A huge wave of money could be rolling toward an unknown shore. Safety is not threatened, but moving that much cash requires planning.Recommended Stories
GE Urged to Drop Auditor KPMG
The 110-year-long relationship is coming under increasing scrutiny from investors.
GE Plunges as Analysts Double Down on the Bear Case
Liquidity concerns, among other problems, have driven the company’s stock price down 27 percent in the just past month.
Negative Yields Across Europe Inc.
Below-zero yields on corporate debt suggest "Japanification" redux.
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.
Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.