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Herstatt Bank

Controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 1974

    Herstatt crisis and foreign-exchange settlement failure

    The bank's failed currency positions led to losses far exceeding its capital and culminated in regulatory liquidation. Because counterparties had paid Deutsche Mark before the corresponding U.S. dollar leg was completed, the collapse became a defining example of cross-border settlement risk and gave rise to the term Herstatt risk.

    Source