Avoiding a Herstatt fiasco
Ayoub Naciri
June 24, 2015 No Comments on Avoiding a Herstatt fiasco
In 1974 Herstatt, a German bank, failed to meet a settlement transaction with a counterparty resulting in loses to the counterparty. Herstatt was duly punished with the suspension of its banking license. As a consolation, cross-currency settlement risk came to be known as Herstatt risk In a previous post link,… Read more »