Scary fintech things
The scary world of how money keeps the status quo
by Jimmy Cerone · updated 25d ago
Scary fintech things
The scary world of how money keeps the status quo
by Jimmy Cerone · updated 25d ago
Government checks don't have credit risk directly , they have operational risk which becomes a credit risk. In the case where either the person cashing them isn't the person named on the check, or where the government later comes to the conclusion that it didn't really want to pay them, that money could (at some risk) be clawed back from the bank,
... See moreJimmy Cerone added 25d ago
That bank does not cash the daily envelope of checks for free, either. It had a consequential commercial negotiation which took notice of the business’ risk profile, high operational costs associated with their custom, and the near certainty that they would be very annoying to work with. The bank ultimately quoted a price per check and, very likely
... See moreJimmy Cerone added 25d ago
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