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This is a big failing, because clearing and settlement account for 80% of the cost of European cross-border share trading.
The balance of the Settlement Account on the Closing Date is $7,466,951.42, for which NW will remain solely responsible.
Even if the court decides that it is due immediately, the small size of the settlement account relative to NSC's cash flow should render it immaterial.
If the court were to award back interest on the settlement account, it would reduce NSC's earnings by about 19 cents a share in the quarter which it was awarded, most likely sometime in 2013.
My guess as to why they are not talking about this one is that top NSC management is simply unaware of the potential award of back interest on the settlement account.
However, PW's counterclaim in the case seeks payment not only of the settlement account, but of back interest at the Applicable Federal Rate (AFR). Because NSC's portion of the settlement account began accruing in 1967, and more than two decades have passed since then, my estimate of the total interest on that $7,466,951.22 is approximately $60.6 million, for a total of $68 million.
Similar(49)
It said the litigation settlement accounted for about 13 cents of the increase.
Okay, so that's $5.1bn and another $4bn of today's settlement accounted for, so $9bn.
Depositors are flocking to its government-guaranteed non interest-bearing "settlement" accounts, which unlike other accounts are not capped at ¥10m.
Now, the government is considering allowing individuals to also have government guaranteed settlement accounts that would earn no interest, but these accounts would charge fees.
That is already a serious defect in iX, since clearing and settlement accounts for a huge share of dealing costs.Another big worry is regulation.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com