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Do you have a source on that, doesn't pass the sniff test for me. I thought it was because they have a presence in the US.
by viggity 12y ago
Do you have a source on that, doesn't pass the sniff test for me. I thought it was because they have a presence in the US.
- awjr 12y agoI did some more research. I think because BNP had offices in NY they came under US jurisdiction. I don't think I'm correct in saying that a bank that trades in US dollars comes under US jurisdiction. However if you do decide to set up offices in the US, expect your world banking practices to come under US scrutiny.
- pcrh 12y agoAt the end of each period, for example a day, banks calculate how much money was paid from accounts at bank A to those at bank B, from bank C to bank A, etc This results in a net credit or debt between the banks. Rather than send all the transactions back and forth, banks will "clear" this net amount between themselves. The "clearing house", which in the US is often either CHIPS [1] or Fedwire [2], handles this process, which handle most large interbank US dollar transactions globally. (Clearing also seems to mean currency exchange in the US, according to WSJ). BNP used this service in the US, so it fell under US law. [1] http://en.wikipedia.org/wiki/Clearing_House_Interbank_Payments_System http://en.wikipedia.org/wiki/Clearing_House_Interbank_Paymen... [2] http://en.wikipedia.org/wiki/Fedwire http://en.wikipedia.org/wiki/Fedwire