franchise and increasing our participation in landmark and cross border transactions," Raymond J. McGuire, Citigroup's head of investment banking, said in a memorandum to staff members last week.
Most agree that the next big surge in cross border transactions will be in Asia, where traditional barriers are only now coming down.
Economists these days are raving about the continued growth of "cross border transactions," the movement of investment money from country to country.
But with currencies constantly rising and falling against each other, cross border transactions today invariably involve winners and losers, as opposed to two individuals exchanging surplus goods of specific value for something else they desire of similar value.
The multilateral interchange fees for cross border transactions, are agreed upon by a network of participating banks, and charged by the bank of a cardholder to the bank of a retailer for payments made by customers in a different European country with either their MasterCard credit card or Maestro debit card.
The Foreign Accounts Tax Compliance Act of 2009 increases transparency of cross border transactions.
Enforceability is an issue in any cross-border transaction.
The European Commission ruled in December 2007 that MasterCard's cross-border transaction fees broke European Union antitrust rules.
He added that if every cross-border transaction created a substantial state interest, "the borders might as well be abolished, and the state can just run everything".
The deal is the first major cross-border transaction in Britain since it voted to exit the European Union last month.
