跨国交易的风险

1、Risk in Cross-Border Transactions: The Wells Fargo v.Citibank Case,Company Introduction,Wells Fargo,CitiBank,LEGAL BATTLE,Wells Fargo,VS,Citibank,CAUSES,In June 1983 WFAL made two six-month deposits of &1 million each with Citibanks Manila branch .,On October 15, 1983, the Philippine government impo

2、sed exchange controls requiring prior approval by the central bank for repayments of principal on foreign obligations to foreign banks.,Add YourIn December 1983, Citibank did not repaythe deposits when matured .,In February 1984, Wells Fargo took legal action.,SOCIAL VIEWPOINT,The WFAL deposits were

3、 booked in the Philippine and thus subject to the sovereign risk of the Philippines.,For Citibank (Manila or New York) to have repaid the deposits at maturity without government approval would have flouted the spirit and possibly the letter of the Philippine law.,FOCAL POINT,Was the matter a questio

4、n for Philippine or New York using its worldwide assets, would this contravene the Philippine exchange control law?,TENDENCY,The Department of State, the U.S. Treasury, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the office of the Comptroller of t

5、he Currency, and the Solicitor General filed a friend-of-the-court brief supporting Citibank.,The U.S. circuit court finally ruled in favor of Wells Fargo on June 26, 1991.,JUDGMENT,REASONS,WFAL could have stipulated that collection on its Manila deposits. Be made at Citibank (New York) , in effect

6、demanding a parental guarantee on repayment of the deposits. If this had been done, presumably the rate ofinterest on Citibank (New York) .,The court found that Citibank had not satisfied its good faith obligation to seek the Philippine governments approval to repay the WFAL deposits.,The Citibank b

7、ranch in Manila was not a separate Legal entity, Philippine law would not be violated by a repayment from Citibanks worldwide assets.,QUESTIONS,1,2,3,Why didnt Citibank repay WFAL deposits when they matured?,On what ground did the U.S. circuit court finally rule in favor of Wells Fargo?,What can be learned from the Wells v. Citibank case about the risk in cross-border financial transactions?,No.3,Concerned about local g