Herstatt Bank
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Herstatt Bank is a privately owned Cologne bank which went bankrupt on 26 June 1974 in a famous incident illustrating settlement risk in international finance.
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On Jun 26, 1974, the bank had taken in its foreign-currency receipts in Europe, but had not made any of its U.S. dollar payments when German banking regulators closed the bank down, leaving counter parties to incur the substantial losses.
