Companies are stockpiling money, reports say
Tuesday, October 15, 2013 4:12 PM
Corporations are piling up cash rather than spending it, according to two separate reports.
Citigroup Inc. reported today that corporate deposits totaled $432 billion at the end of the third quarter, according to The Wall Street Journal.
That is up 4 percent from a year ago and 2 percent from the second quarter. The numbers are similar to what JPMorgan Chase & Co. and Wells Fargo & Co. reported last week.
Another report, released by the St. Louis Federal Reserve Bank yesterday, shows that U.S. companies are holding four times as much cash as they were in 1995,CNNMoney reported.
The report's authors, St. Louis Fed economists Juan Sanchez and Emircan Yurdagül, concluded that overall political uncertainty has caused companies to be more cautious with their cash.
Nonfinancial U.S. businesses are sitting on more than $1.8 billion in liquid securities.