What's Neu - News from the The NeuGroup Network of Peer Groups

Blog entry
By jneu, June 26, 2012

This post is being shared via the NeuGroup Exchange with all members.

In conjunction with recent conference calls with our Advisory Board, The NeuGroup is pleased to welcome Ron Chakravarti, Managing Director and Global Solutions Head, Liquidity & Investments at Citi GTS and Eileen Zicchino, Managing Director and Chief Marketing Officer for JP Morgan Treasury Services to our advisory group.

We have known and worked with Ron for many years and he has become an invaluable resource for The NeuGroup. He was instrumental recently in helping to promote our Global Cash and Banking Group’s collaboration with Citi Treasury DiagnosticsSM on the World-Class Cash Management Principles project.   This led to several joint presentations, including before the Citi GTS Client Advisory Board and regional client roundtables, SIBOS and several webinars. Ron has also key to Citi’s support of our groups, including The Treasurers’ Group of Thirty and our newest group, The Assistant Treasurers’ Group of Thirty, which will launch in September. As global solutions head for liquidity and investments, Ron leads a global team responsible for the design and delivery of integrated global treasury and liquidity solutions for Citi’s corporate and financial institutional clients. He shares our desire to deliver solutions that meet what practitioners see as their immediate needs.

Eileen is also someone we have known for many years and who has been a source for many good ideas that we have either implemented or wish we had. As chief marketing officer for J.P. Morgan Treasury Services, Eileen brings several decades of experience and unrivaled knowledge of bank products for treasury—plus the messaging that goes with them. She has been closely involved with J.P. Morgan’s support of our groups, including recent meetings of The Tech20 Group of Treasurers, The Treasurers’ Group of Thirty, The Global Cash and Banking Group, The European Treasurers’ Peer Group and The Latin American Treasury Managers’ Peer Group.  Eileen is also actively involved with the Business Marketing Association serving on its national board and as president of its New York City chapter. She thus brings a tremendous amount of business marketing know-how along with her bank and treasury services expertise.

We look forward to having the benefit of both Ron’s and Eileen’s insights as they join our Advisory Board.

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Blog entry
euro crisis
By jneu, May 29, 2012

This post is being shared via the NeuGroup Exchange with all members.

Reading about the amount of funding needed to keep Euro Payment Systems liquid through the euro crisis (see for example, below), it makes you wonder what the risk is of having money going through them at the wrong time.

Has anyone explored this risk?

This post from Simon Johnson on Huffington Post sheds light on the exposure:

More importantly and less known to German taxpayers, Greece will also default on 155 billion euros directly owed to the euro system (comprised of the ECB and the 17 national central banks in the euro zone). This includes 110 billion euros provided automatically to Greece through the Target2 payments system -- which handles settlements between central banks for countries using the euro. As depositors and lenders flee Greek banks, someone needs to finance that capital flight, otherwise Greek banks would fail. This role is taken on by other euro area central banks, which have quietly lent large funds, with the balances reported in the Target2 account. The vast bulk of this lending is, in practice, done by the Bundesbank since capital flight mostly goes to Germany, although all members of the euro system share the losses if there are defaults.

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