1. What went wrong at Herstatt.
- Subjects
BUSINESS losses ,FOREIGN exchange ,BALANCE of payments deficit - Abstract
The article discusses the 190-million dollars loss of Bankhaus ID Herstatt in foreign exchange trading in Germany in 1974. It states that the continuing investigation into the collapse of Herstatt directs to a bank that had been dealing foreign currencies in volumes beyond all reason. Apparently, the error of Herstatt was to heavily purchase dollars for future delivery, betting that the value of the dollars would substantially increase by the time it had taking delivery in the spring.
- Published
- 1974