Search
 

New Game of No TAG

As banks opt out of unlimited FDIC protection on corporate accounts, treasurers scramble to find safe havens for cash.

By Richard Gamble | Updated on February 01, 2010

Last year, the state of Maryland had more than $200 million on deposit in a Citigroup account that was fully insured by the Federal Deposit Insurance Corp. and that paid 50 basis points. “It was an extremely wise investment,” says Mary Christine Jackman, the state’s director of investments. Then Citi, like most big banks, opted out of the unlimited FDIC coverage. Jackman immediately pulled the money and invested it in things like Treasuries, agencies and repos.

“Without the insurance, it was no longer attractive,” she says. “The whole point was getting the insurance.” Making sure investments are insured or guaranteed is one reason Maryland has a triple-A rating, she points out.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2025 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.

Recommended Stories

Treasury & Risk

Join 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.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2025 ALM Global, LLC. All Rights Reserved.