Treasury Strategies sent out a press realease entitled, "Record UK & Eurozone Corporate Cash is not the Result of Systematic Hoarding". It says, "Treasury Strategies, a treasury consulting firm, recently reported that UK and Eurozone corporate cash levels had been rising strongly for nearly a decade. This report throws into question recent contentions that corporations have been hoarding cash since the financial crisis and contributing to delayed economic recovery.... Treasury Strategies analysis shows that corporate cash and GDP across the region rose almost in lockstep. However, in 2002 there was a dramatic shift that caused cash levels to grow more steeply than GDP for much of the ensuing decade. Today, corporate cash stands at L780 billion in the UK, and E1.95 trillion in the Eurozone.... The firm has several hypotheses regarding the broken link.... [O]ne cause might be an increase of "trapped cash," which companies headquartered outside the region chose to not repatriate for tax or regulatory reasons. Another possibility is that financial executives have changed their view of prudent cash levels in a world of heightened unpredictability."
