Which idiot...........???
Jan 14th 2008, 2:16 pm
#1
Lost in BE Cyberspace
Thread Starter
Joined: Jul 2007
Posts: 13,553
Which idiot...........???
..... decided that today should be a BANK Holiday in Dubai? Do what the Magic Kingdom have done for tomorrow (schools and government offices to close for one day, everything else business as usual), fine - but a BANK Holiday?
Let me abbreviate a long story - back in the mid-70s, a German bank (Herstatt) went bust. The German central bank didn't tell anyone - they just closed the bank down.
All money owed to Herstatt was paid as usual (billions of dollars, pounds, yen, etc), but none of Herstatt's outgoing payments were made - by order.
Result - everyone went overdrawn with everyone else..... near-collapse of the global financial system. Bollocking for German central bank. Even today, bankers still refer to "Herstatt Risk" (the risk that money doesn't arrive on the due date for what ever reason).
Now nobody is suggesting Dubai is as important as a financial centre as Germany but banks in Dubai were given no warning about delaying payments, rescheduling debt, etc - and Dubai banks have obligations in dollars, pounds, yen, etc...... Dubai banks may well be hugely overdrawn in other centres tonight.
This will be a serious dent in Dubai's credibility as a major financial hub for the region - fallout will escalate in the coming days, I predict.
It could have been sorted out, but staff trying to get to work today to do just that were blocked by police etc (you know about that better than I do, I'm sure). I just spoke to one guy who was prevented from CYCLING to his bank. (Indie Girl may know the story....).
Anyway, as I was saying....... WHICH IDIOT..........etc etc....
Let me abbreviate a long story - back in the mid-70s, a German bank (Herstatt) went bust. The German central bank didn't tell anyone - they just closed the bank down.
All money owed to Herstatt was paid as usual (billions of dollars, pounds, yen, etc), but none of Herstatt's outgoing payments were made - by order.
Result - everyone went overdrawn with everyone else..... near-collapse of the global financial system. Bollocking for German central bank. Even today, bankers still refer to "Herstatt Risk" (the risk that money doesn't arrive on the due date for what ever reason).
Now nobody is suggesting Dubai is as important as a financial centre as Germany but banks in Dubai were given no warning about delaying payments, rescheduling debt, etc - and Dubai banks have obligations in dollars, pounds, yen, etc...... Dubai banks may well be hugely overdrawn in other centres tonight.
This will be a serious dent in Dubai's credibility as a major financial hub for the region - fallout will escalate in the coming days, I predict.
It could have been sorted out, but staff trying to get to work today to do just that were blocked by police etc (you know about that better than I do, I'm sure). I just spoke to one guy who was prevented from CYCLING to his bank. (Indie Girl may know the story....).
Anyway, as I was saying....... WHICH IDIOT..........etc etc....
Last edited by The Dean; Jan 14th 2008 at 2:18 pm. Reason: wisdom
Jan 14th 2008, 2:32 pm
#2
Lost in BE Cyberspace
Joined: Jan 2007
Location: By the old canal...
Posts: 7,715
Re: Which idiot...........???
..... decided that today should be a BANK Holiday in Dubai? Do what the Magic Kingdom have done for tomorrow (schools and government offices to close for one day, everything else business as usual), fine - but a BANK Holiday?
Let me abbreviate a long story - back in the mid-70s, a German bank (Herstatt) went bust. The German central bank didn't tell anyone - they just closed the bank down.
All money owed to Herstatt was paid as usual (billions of dollars, pounds, yen, etc), but none of Herstatt's outgoing payments were made - by order.
Result - everyone went overdrawn with everyone else..... near-collapse of the global financial system. Bollocking for German central bank. Even today, bankers still refer to "Herstatt Risk" (the risk that money doesn't arrive on the due date for what ever reason).
Now nobody is suggesting Dubai is as important as a financial centre as Germany but banks in Dubai were given no warning about delaying payments, rescheduling debt, etc - and Dubai banks have obligations in dollars, pounds, yen, etc...... Dubai banks may well be hugely overdrawn in other centres tonight.
This will be a serious dent in Dubai's credibility as a major financial hub for the region - fallout will escalate in the coming days, I predict.
It could have been sorted out, but staff trying to get to work today to do just that were blocked by police etc (you know about that better than I do, I'm sure). I just spoke to one guy who was prevented from CYCLING to his bank. (Indie Girl may know the story....).
Anyway, as I was saying....... WHICH IDIOT..........etc etc....
Let me abbreviate a long story - back in the mid-70s, a German bank (Herstatt) went bust. The German central bank didn't tell anyone - they just closed the bank down.
All money owed to Herstatt was paid as usual (billions of dollars, pounds, yen, etc), but none of Herstatt's outgoing payments were made - by order.
Result - everyone went overdrawn with everyone else..... near-collapse of the global financial system. Bollocking for German central bank. Even today, bankers still refer to "Herstatt Risk" (the risk that money doesn't arrive on the due date for what ever reason).
Now nobody is suggesting Dubai is as important as a financial centre as Germany but banks in Dubai were given no warning about delaying payments, rescheduling debt, etc - and Dubai banks have obligations in dollars, pounds, yen, etc...... Dubai banks may well be hugely overdrawn in other centres tonight.
This will be a serious dent in Dubai's credibility as a major financial hub for the region - fallout will escalate in the coming days, I predict.
It could have been sorted out, but staff trying to get to work today to do just that were blocked by police etc (you know about that better than I do, I'm sure). I just spoke to one guy who was prevented from CYCLING to his bank. (Indie Girl may know the story....).
Anyway, as I was saying....... WHICH IDIOT..........etc etc....
Presumably the rest of the banking world just rolls their eyes to the heavens and gets on with sorting out the mess????
Jan 14th 2008, 3:53 pm
#3
Joined: May 2007
Posts: 4,990
Re: Which idiot...........???
..... decided that today should be a BANK Holiday in Dubai? Do what the Magic Kingdom have done for tomorrow (schools and government offices to close for one day, everything else business as usual), fine - but a BANK Holiday?
Let me abbreviate a long story - back in the mid-70s, a German bank (Herstatt) went bust. The German central bank didn't tell anyone - they just closed the bank down.
All money owed to Herstatt was paid as usual (billions of dollars, pounds, yen, etc), but none of Herstatt's outgoing payments were made - by order.
Result - everyone went overdrawn with everyone else..... near-collapse of the global financial system. Bollocking for German central bank. Even today, bankers still refer to "Herstatt Risk" (the risk that money doesn't arrive on the due date for what ever reason).
Now nobody is suggesting Dubai is as important as a financial centre as Germany but banks in Dubai were given no warning about delaying payments, rescheduling debt, etc - and Dubai banks have obligations in dollars, pounds, yen, etc...... Dubai banks may well be hugely overdrawn in other centres tonight.
This will be a serious dent in Dubai's credibility as a major financial hub for the region - fallout will escalate in the coming days, I predict.
It could have been sorted out, but staff trying to get to work today to do just that were blocked by police etc (you know about that better than I do, I'm sure). I just spoke to one guy who was prevented from CYCLING to his bank. (Indie Girl may know the story....).
Anyway, as I was saying....... WHICH IDIOT..........etc etc....
Let me abbreviate a long story - back in the mid-70s, a German bank (Herstatt) went bust. The German central bank didn't tell anyone - they just closed the bank down.
All money owed to Herstatt was paid as usual (billions of dollars, pounds, yen, etc), but none of Herstatt's outgoing payments were made - by order.
Result - everyone went overdrawn with everyone else..... near-collapse of the global financial system. Bollocking for German central bank. Even today, bankers still refer to "Herstatt Risk" (the risk that money doesn't arrive on the due date for what ever reason).
Now nobody is suggesting Dubai is as important as a financial centre as Germany but banks in Dubai were given no warning about delaying payments, rescheduling debt, etc - and Dubai banks have obligations in dollars, pounds, yen, etc...... Dubai banks may well be hugely overdrawn in other centres tonight.
This will be a serious dent in Dubai's credibility as a major financial hub for the region - fallout will escalate in the coming days, I predict.
It could have been sorted out, but staff trying to get to work today to do just that were blocked by police etc (you know about that better than I do, I'm sure). I just spoke to one guy who was prevented from CYCLING to his bank. (Indie Girl may know the story....).
Anyway, as I was saying....... WHICH IDIOT..........etc etc....
Jan 14th 2008, 4:03 pm
#4
BE Forum Addict
Joined: Apr 2005
Location: Melbourne
Posts: 4,553
Re: Which idiot...........???
Have been working non-stop since morning (staff appraisals)
It happens more often than you think - thank god am no longer in Ops.
Every time we had a moon-sighting dependent holiday, we waited with baited breath because the CB procrastinated (not sure now) until late in the evening to issue a holiday notice
Imagine changing the value-dates on thousands of clearing cheques in the system when they decided that the next day was/wasn't a holiday...:curse:
It happens more often than you think - thank god am no longer in Ops.
Every time we had a moon-sighting dependent holiday, we waited with baited breath because the CB procrastinated (not sure now) until late in the evening to issue a holiday notice
Imagine changing the value-dates on thousands of clearing cheques in the system when they decided that the next day was/wasn't a holiday...:curse:
Jan 14th 2008, 4:29 pm
#5
Lost in BE Cyberspace
Thread Starter
Joined: Jul 2007
Posts: 13,553
Re: Which idiot...........???
Have been working non-stop since morning (staff appraisals)
It happens more often than you think - thank god am no longer in Ops.
Every time we had a moon-sighting dependent holiday, we waited with baited breath because the CB procrastinated (not sure now) until late in the evening to issue a holiday notice Imagine changing the value-dates on thousands of clearing cheques in the system when they decided that the next day was/wasn't a holiday...:curse:
It happens more often than you think - thank god am no longer in Ops.
Every time we had a moon-sighting dependent holiday, we waited with baited breath because the CB procrastinated (not sure now) until late in the evening to issue a holiday notice
Imagine changing the value-dates on thousands of clearing cheques in the system when they decided that the next day was/wasn't a holiday...:curse:
