With its international supervisory and regulatory implications, the failure of Bankhaus Herstatt is one of the landmarks of post-war financial history. This article offers the first comprehensive historical account of the Herstatt crisis, and contributes to the wider discussions on international supervisory and regulatory reform since the mid-1970s.
A visit of a German chancellor to the Bundesbank was unusual enough to be carefully recorded. The transcription of the discussion has now been declassified, which gave me the opportunity to try a detailed text analysis of the record.
This article focuses on the role of central bankers in European monetary cooperation, from the failure of the Werner Plan to the creation of the European Monetary System (EMS).