Had the banks been allowed to call in loans sooner, they might have lost less.
During the slumps the economy is vulnerable to what Austrians termed a "secondary deflation, " where banks call in loans and are stingy about extending credit.
The only other way to bankrupt the firm would be for creditors to call in loans, which Yukos cannot repay because its assets have been frozen by a court.
Most of the subprime loans or what they call exploding ARM loans, where even if overall interest rates in the market stay flat, the borrowers' payments still jump up, often 40 percent or higher after a couple of years.
But Hokuyo cannot call in most loans to debt-laden companies, because it has undertaken to keep the firms alive.
There are fears too that Japanese banks, by far the biggest lenders in the region, might call in their loans.
Nor could Mr Hashimoto promise that Japan's banks would not call in their loans to companies in the afflicted countries, perhaps precipitating national bankruptcies.
If the banks take a large haircut on Greek loans, will this not call into question their Spanish and Italian loans?
FORBES: Don't Hold Your Breath For A Brussels Solution To Europe's Crisis
Generous loan covenants give managers more flexibility to work through their debt, and lenders are keen to extend the duration of loans rather than call them in and face more write-downs.
ECONOMIST: The buy-out barons say the worst is over. They would
First, the IMF did not fully estimate the possible losses on loans in what bankers call "forbearance" - which is where banks have allowed borrowers in difficulty to temporarily cease payments.
Whatever you call them, these sites are making loans.
FORBES: How Online Pawn Shops Prey on Desperate Entrepreneurs With 90%+ Interest
While doing so, the banks have had to decide whether to continue making loans to insolvent customers or to call them in.
While Madrid is right to call for a more aggressive cull of bad loans, its move to restore confidence in the banking sector has left it with little choice but to rescue Bankia.
FORBES: It's the Mutual, Not For Profit, Banks Which Are the Problem in Spain
Yesterday, the President delivered remarks at the University of North Carolina at Chapel Hill and continued his call for Congress to stop interest rates on student loans from doubling in July.
In North Carolina, the President will deliver remarks at the University of North Carolina at Chapel Hill, where he will continue to call on Congress to stop interest rates on student loans from doubling in July.
Isaacson reasons the terms of the loans made them "nonrecourse" (meaning the employee's other assets weren't at risk) and that 1971 IRSregs on nonrecourse loans mean the shares shouldn't have been valued and taxed until the margin call, when they were worth less.
应用推荐