Treasurers Weigh Moves for End of FDIC Program
Corporate treasurers say they’ll be measured in how they move cash around when the Federal Deposit Insurance Corp’s unlimited guarantee on non-interest bearing bank accounts expires on Dec. 31, despite concerns that they’ll flood into assets like money market funds.
“The FDIC guarantee was almost too good to be true — we didn’t expect it to last. The crisis is over,” said Bill Razzino, vice president of global corporate finance at CareerBuilder.com. “Right now, it doesn’t make sense to pull our money out, but we will remain very vigilant,” he added. “We’re looking at our banks’ overall financial picture to make sure the ones we’re partnered with are stable.”