Foreign Correspondent Banking: The three dreaded words that hang like the Damocles Sword on every foreign bank wanting to trade with the United States for US Dollar clearing & settlement.
This is a great article that highlights the issues surrounding the shrinking supply of foreign correspondent banks.
In addition to this article, I would also highly recommend you read this 3-page article by Richard Northedge of The Daily Telegraph: Correspondence closed as banks post changes (PDF).
Once again, banks seem to be caught between a regulatory rock and a hard place. After years of additional regulations and civil money penalties…