In the run-up to Moody's downgrades in its credit ratingsfor 15 global banks yesterday, corporate treasurers reviewed theirbanking relationships, according to a Reuters story. Sometreasurers have added more banks to their credit facilities or madechanges in their deposit arrangements. Meanwhile, banks arereaching out to their corporate clients to reassure them abouttheir creditworthiness and issue warnings about theircompetitors.
When Lehman collapsed in 2008, companies that banked with Lehmanwere left scrambling. Now it's common for credit facilities toinclude a provision that lets companies exclude a bank if it seemsto be in danger of reneging on a commitment.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
