Rindler Sigurd wrote:
>>in Japan might thus be unwilling to shoulder the Herstatt risk
>>if their business with Korea isn't that important.
> 
> "Herstatt risk" is quite interesting to hear...
> Where did you get this term from?

Its also called cross currency settlement risk. Though Herstatt is more 
common (and recent).

> I was actually working in Cologne (Germany) when the Herstatt Bank collapsed
> and thousands lost their money to this crook (Mr. Herstatt, the owner). That
> was about 1970 to 1975. Is there a connection to this bankrupt bank?

Yes. In the 1970s Herstatt Bank failed to pay what it owed in several 
foreign-exchange transactions after the other banks had met their 
obligations.


-- 
"As I write, highly civilized human beings are flying overhead, trying 
to kill me. They do not feel any enmity against me as an individual, nor 
I against them. They are "only doing their duty", as the saying goes. 
Most of them, I have no doubt, are kind-hearted law-abiding men who 
would never dream of committing murder in private life. On the other 
hand, if one of them succeeds in blowing me to pieces with a well-placed 
bomb, he will never sleep any the worse for it. He is serving his 
country, which has the power to absolve him from evil"  - George Orwell, 
England Your England, 1941