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THE STRUCTURAL PROBLEM WITH PROFIT MAXIMISING CLEARINGHOUSES

The problem with profit maximising clearinghouses is that expanding volumes will always increase risk.
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This post will talk through the conceptual problem with profit maximising motives of a clearinghouse. Later posts will go through real world examples. The first concept to grasp is that the clearin…

The full video is for paid subscribers

Clearinghouses
Issues with clearinghouses
Authors
Russell Clark