No, it will recognize the fact that some of them may already be insolvent.
Some won't be insolvent companies but companies that simply can't roll over debts.
Under these rules, several banks would be insolvent without more capital.
Well, according to the law suit those guarantees, one issued by European BO Atlantic Trust Ek, were controlled by executives of AmiWorld and found to be insolvent.
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Ackman has challenged the strength of MBIA and other bond insurers for more than five years and as recently as November forecast they would be insolvent by the second quarter because of their exposure as guarantors to billions of credit derivatives products packed with subprime mortgage debt.
Ambac shares have lost 90% of their value since January 2007 and William Ackman, a short-seller who runs the hedge fund Pershing Square Capital, has railed against them (to his own benefit), saying the bond insurers could be insolvent by the second quarter because of their exposures to the structured finance market.
Virgin France has just announced it's about to be declared insolvent.
Gorton also details the overturning of an 1846 New York State constitutional amendment requiring that a bank be declared insolvent if it failed, under any pretext whatsoever, to redeem one of its own banknotes.
Because capital is usually, and legitimately, a small percentage of assets, capital can easily go to zero and a perfectly sound institution can be declared insolvent and taken over by its insurer or some other government agencies.
It said without that amount the trust would be unable to pay its debts and would be "deemed insolvent".
At the same time, the ECB has apparently now said that it won't directly lend to some Greek banks that it judges to be technically "insolvent".
He was generous in the free-spirited way that only the inveterately insolvent can be.
The risk of banks becoming insolvent should be co-ordinated across the sterling currency zone, it is proposed.
And Albion Rovers boss Paul Martin said his side should not be playing "an insolvent club" in the Co-op Cup.
Any bank unable to raise private capital, perhaps rendering it insolvent, would be taken over.
Sure, the U.S. Government may be, or become, insolvent but remember, it was Uncle Sam that bailed out Wall Street five years ago.
Dodd-Frank gives unprecedented power to the Treasury secretary to determine whether an insolvent financial company will be subject to OLA. The Act sets a high standard for invoking the authority, but the process is unnecessarily tainted by the involvement of a political appointee, even if he or she is acting in good faith.
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Thanks to reporting by Bloomberg today, we are getting the view that JPM in London has run amuck trying to become a major profit center by specializing in corporate derivative transactions similar to those used in the lead-up to the mortgage meltdown in 2007-2008 that caused several banks to become insolvent and need to be bailed out.
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The 1995 Occupational Pensions Act lulled scheme members into a false sense of security by creating a Minimum Funding Requirement that led them to believe that even if their employer became insolvent, there would always be enough money to meet pension promises.
If its collapse does lead France to create and consistently apply a rehabilitation system for insolvent firms, then there will be much greater pressure for Europe-wide rules to achieve the same outcome.
Some thought that physical gold would be a lot safer than a deposit in an insolvent bank.
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Mr Obuchi has vowed that none of the country's 19 big banks will be allowed to go broke, although some are insolvent.
The Fed needs to be sure it does not become a crutch for insolvent financial firms, distorting credit allocation and risk taking.
Unlike the bail-out approach, the bail-in method is much closer to what is observed in a true bankruptcy proceeding: the petitioner is insolvent, so haircuts of some magnitude must be suffered by the relevant creditors, but no haircuts at all are imposed on the general public, which stands outside the courtroom and is not a party to the case at hand.
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But for now, each country will be left in charge of restructuring and winding down banks deemed insolvent by the ECB.
So it is with the European bank loans to sovereign governments in Europe which cannot be written down to their current value without making these banks insolvent and requiring bailout by their already overly indebted sovereign governments.
By contrast, simply expanding coverage could be bad for those people by making the whole system even more insolvent.
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If a limited company becomes insolvent and cannot pay its debts, a liquidator will be appointed to collect and redistribute all the company's assets to the creditors.
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For as people refuse to buy the rolled over debt at current prices, the interest rate that has to be paid to roll over that debt rises and thus Italy becomes insolvent.
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