Date: June 2, 2016

Tax Reform and its Effect on Global Liquidity (A)

Session Description

This topic will focus on how the currently expected Tax Reform will alter how Corporate Treasurers view and handle the repatriation of cash generated overseas back to the U.S.  Having run on a promise to reduce the tax burden of repatriating cash back to the U.S., the current administration has started to unveil policies that may ultimately have a dramatic effect on how Corporate Treasurers return cash to the U.S., highlighting what benefits may be derived and available alternatives for investing said cash.  With a dramatically reduced tax burden (which will be discussed with further visibility come the date of the NYCE), Corporate Treasurers will likely benefit from the ability to increase share repurchases, pay dividends to a parent entity without concern for violating intercompany loan covenants and seek investment alternatives for cash that will likely be viewed as either reserve/core or strategic in nature.  This topic will also include a discussion regarding the management of USD that Corporate Treasurers may look to change with a lighter tax burden.  Specifically, USD generated and used for working capital and investment overseas can possibly be shifted/centralized in the U.S. to take advantage of both a more ‘local’ management of cash for U.S. entities and for time zone benefits.  


The discussion will highlight considerations such as cost of changing a liquidity management approach in light of a tax change as well as managing risk of additional tax changes with future administrations.



Speaker Information

Jim Santoro is a Managing Director and Head of Liquidity & Investment Advisory Americas at BNP Paribas.  In this capacity, Jim and his team work with multinational organizations on end-to-end liquidity and investment needs by reviewing and understanding client investment policies, cash flow needs, return hurdles, etc., ultimately advising clients on creating optimal liquidity solutions for treasury cash.  


Previously, Jim spent 3 years at Bank of America Merrill Lynch (BAML), where he was the U.S. Head of Liquidity Product Management.  At BAML, he was responsible for the development, management and pricing of the US deposit suite of products within the Corporate bank, representing several hundred billion dollars of corporate balance sheet funding. Prior to joining BAML in 2010, Jim was at JPMorganChase for nearly 8 years  where he held various roles across Finance, Liquidity and Sales.  Jim also spent time at SG Cowen as an Investment Banking Associate and Neuberger Berman.


Jim received his MBA in Finance from the University of Notre Dame Mendoza College of Business and his Bachelor’s degree from Villanova University.  He is a member of the Association of Financial Professionals and holds series 24, 7 and 63 licenses.