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Banking

BankingCapital Markets
May 19, 2022

A Tale of Two Bank Revolvers 

One company has fewer than 10 banks in its revolving credit facility while the other has more than two dozen. How many banks does a corporation need or want in its revolving credit facility? The answer, no surprise, is that it depends on the company, a point driven home at a recent meeting of NeuGroup for Mega-Cap Assistant Treasurers. During the session, two members discussed how they arrived at very different answers based on the particulars of their companies. Less…
Justin Jones
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BankingCapital Markets
May 12, 2022

Why Morgan Stanley Sees US Economy Avoiding Recession

Economist Robert Rosener tells bank treasurers that rising wages supporting consumption and continued capex by corporates should keep GDP growth above trend. Not everyone thinks the Fed will push the US economy into recession as it raises rates to fight inflation. Robert Rosener, senior US economist at Morgan Stanley, recently told members of NeuGroup for Regional Bank Treasurers that the firm sees just a 25% chance of recession over the next year. “Avoiding recession is our base case, but markets…
Justin Jones
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BankingRegional
May 12, 2022

Russia Reality: Paying Taxes to Shield Staff From Criminal Liability

Fear of criminal liability motivates corporates to pay taxes in Russia—but banks are rejecting some tax payments. The threat of criminal prosecution of their employees in Russia is one reason some US-based companies continue to make tax payments in Russia. Meanwhile, several US companies report that Russian tax payments made by entities outside the US have been rejected by a US-based bank. These takeaways emerged at the most recent NeuGroup session where members discuss the challenges facing finance teams at…
Justin Jones
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BankingCash & Working CapitalRegional
April 28, 2022

Slim Down: A Bank Tells Corporates to Cut Account Balances in Russia

Settling intercompany invoices emerges as the best option for some members to quickly reduce deposit balances in Russia. A major US bank used by scores of NeuGroup member corporations in Russia has recently been making strong recommendations to some of them—in conversations, not in writing—that they find alternatives to the bank as the war with Ukraine enters its third month and the bank further reduces its exposure to Russia. This development sparked discussion among members about contingency plans and how…
Justin Jones
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BankingComplianceRegional
April 14, 2022

Adding a Sanctions Checklist to a Crisis Management Playbook

Treasurers navigating the twists and turns of the deepening crisis in Ukraine took time out to hear about some best practices in crisis management.Editor’s Note: NeuGroup is running weekly special sessions on the Russian-Ukrainian crisis. Senior executive advisor Paul Dalle Molle, a former banker with extensive European experience, leads the discussions.By Paul Dalle Molle Financial fallout from Russia’s invasion of Ukraine has put new focus on how multinational corporations plan for and manage geopolitical crises. And while all big companies devote…
Justin Jones
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BankingRegional
April 7, 2022

Ripple Effects: ADP’s Russia Exit Fuels Search for Payroll Options

The payroll processor’s pullout is another snag facing corporates. Others: collecting receivables, payment delays, supply chain woes.Editor’s Note: NeuGroup is running weekly special sessions on the Russian-Ukrainian crisis. Senior executive advisor Paul Dalle Molle, a former banker with extensive European experience, leads the discussions.By Paul Dalle MolleNews that payroll processor ADP had notified one NeuGroup member company that it will cease payroll operations in Russia on June 30 generated plenty of discussion at our most recent weekly Russia crisis session. One treasurer…
Justin Jones
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BankingRegional
March 31, 2022

New Territory: An Expert’s Take on ‘Unprecedented’ Russia Sanctions

Attorney Adam M. Smith, a former senior advisor to the director of OFAC, shares insights and perspective on sanctions.Editor’s Note: NeuGroup is running weekly special sessions on the Russian-Ukrainian crisis. Senior executive advisor Paul Dalle Molle, a former banker with extensive European experience, leads the discussions.By Paul Dalle MolleAt this week’s NeuGroup Russia session, members heard insights on sanctions and the road ahead from Adam M. Smith, a partner at Gibson, Dunn & Crutcher’s Washington, D.C. office, who is a leading…
Justin Jones
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BankingRegional
March 24, 2022

Russia Sanctions and Exits: Devil’s in the Details

Members discuss bank guarantees, clients that are in no hurry to pay and good news on intercompany funding—at least for now.Editor’s Note: NeuGroup is running weekly special sessions on the Russian-Ukrainian crisis. Senior executive advisor Paul Dalle Molle, a former banker with extensive European experience, leads the discussions.By Paul Dalle MolleThe war in Ukraine is now, sadly, one month old. With this milestone we also note an evolution of the concerns of NeuGroup members. They have more clarity on their…
Justin Jones
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BankingCash & Working CapitalRegional
March 17, 2022

Liquidity and Payments in Focus as Sanctions Deadlines Loom 

Top concerns remain paying salaries to staff and ensuring local businesses have enough liquidity to meet their obligations.   Editor’s Note: NeuGroup is running weekly special sessions on the Russian-Ukrainian crisis. Senior executive advisor Paul Dalle Molle, a former banker with extensive European experience, leads the discussions. By Paul Dalle Molle Thousands of international companies have been weighing their options since Russia’s invasion of Ukraine. These range from full and immediate pullouts to doing business as usual—and many nuanced positions in between. Even corporates…
Justin Jones
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BankingRegional
March 10, 2022

Russia Crisis: Finance Navigates Complexity, Fluidity, Unknowns

Paying staff in Russia as companies exit and complying with complex sanctions increase pressure on finance leaders. Editor’s note: NeuGroup is running weekly special sessions on the Russian-Ukrainian crisis to help members navigate the financial consequences of the war. NeuGroup senior executive advisor Paul Dalle Molle, a former banker with extensive European experience, leads the discussions, and we asked him to share his latest insights and takeaways.  By Paul Dalle Molle At this stage of the crisis, there are still,…
Justin Jones
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