Entire textbooks have been written about the corporate treasury or cash management function. Briefly, large companies try to keep as little money as possible in

Entire textbooks have been written about the corporate treasury or cash management function. Briefly, large companies try to keep as little money as possible in deposit accounts at banks; the rest goes into investments, selected for risk, return, and liquidity consistent with the company’s forecast of its cash requirements. This may not have much to do with the article you read, however. When it’s said that a company has put an amount of money aside, it often means that the company has recorded a liability in that amount on its balance sheet, or that it plans to spend that amount in the future. Nothing about where the company is keeping the money, if it even has the money, may have changed. Ironically, the details of companies’ cash management systems are revealed in bankruptcy filings, since the debtor company has to ask for court permission to keep using its existing bank accounts. For example, here’s a motion from PG&E Corporation, the large California utility holding company, with diagrams of its bank accounts and a copy of its investment policy: https://restructuring.primeclerk.com/pge/Home-DownloadPDF?id1=MTI5MDk0&id2=0 https://restructuring.primeclerk.com/pge/Home-DownloadPDF?id...