Treasury Strategies Sees Potential for Regulatory Chaos

CHICAGO--(Business Wire)--
An analysis of emerging regulatory trends shows the potential for the financial
crisis to shift into regulatory chaos. This is according to Anthony J. Carfang,
partner of Treasury Strategies, who spoke during a recent meeting of the
American Bankers Association Payments Council held at the Federal Reserve Bank
of Minneapolis.

"Based on our detailed analysis of proposed reforms in the US, UK and EU,
Treasury Strategies has identified four key themes," said Carfang. Regulators
want to:

1. Curtail non-bank money market activity

2. Raise capital requirements

3. Increase low return liquidity buffers

4. Intensify oversight and reporting

Referencing specific proposals, Carfang suggested how reforms will reshape the
industry landscape for banks and their corporate customers. "Banks will see a
major consolidation resulting in greatly reduced competition. However, we see
mixed financial results."

"Corporations will have fewer financial services providers to choose from and
fewer available instruments. They will also experience higher costs for credit
and operating services," continued Carfang.

The greatest risk is for this move toward tighter control to develop into a
regulatory arms race. In that environment, the regulatory agencies within a
country would compete to be the most stringent, which would be compounded by
escalating competition among countries.

There are steps organizations can take now to mitigate risk.

1. Stay abreast of impending regulations and develop a framework to evaluate the
potential impact

2. Ramp up your advocacy by leveraging your lobbyists and trade associations

3. Plan for contingencies

"If you wait to see what outcomes emerge, you will be left behind," said
Carfang. "It will be several years before the markets return to equilibrium, so
your opportunity to prepare is now."

Click the following link to hear recorded sessions from our Regulatory Briefing
series http://www.treasurystrategies.com/resources/webEvents.htm

Follow Treasury Strategies on Twitter at http://twitter.com/TreasuryStrat.

Treasury Strategies, Inc. is the leading Treasury consulting firm working with
corporations and financial services providers. Our experience and thought
leadership in treasury management, working capital management, liquidity and
payments, combined with our comprehensive view of the market, rewards you with a
unique perspective, unparalleled insights and actionable solutions. For more
information, please visit www.TreasuryStrategies.com.

Treasury Strategies, Inc.
Kyle O`Connor
312.628.6927
kyle_oconnor@TreasuryStrategies.com

Copyright Business Wire 2009