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…
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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.
Clearinghouses
Issues with clearinghouses
Issues with clearinghousesAuthors
Russell Clark