Executives Yank Money From Banks as Some Deposits Look Riskier
- CFOs, treasurers review financing, cash management strategies
- Market turmoil brings corporate risk frameworks in focus
Photographer: Philip Pacheco/Bloomberg
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With Credit Suisse Group AG having wobbled this week and a handful of regional US banks collapsing, company executives are getting more concerned about where they can safely keep their cash.
Some of them are yanking money from their banks and depositing it at other lenders, moving it to money market funds, or buying Treasury bills directly, according to corporate treasurers and advisers. The rapid moves are leaving certain banks with quick drops in deposits while helping to pull borrowing rates lower on short-term government debt, adding to turmoil in financial markets.