The aim was to break out of collateral-based lending, making no-collateral loans based on evaluation of various risk factors.
Not only have many of those assets dropped substantially in value, the banks also hold collateral against loans and borrowers.
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His staff hit upon another idea: Pledge the existing endowment as collateral for loans from banks, and lend the proceeds to students at normal rates.
The alleged method: borrowing shares of restricted stock in several small companies to use as collateral for loans without telling the banks the shares were borrowed.
One reason that the banks got into such a mess was that the law made it hard to secure collateral for loans and to chase bad debtors.
When the FDIC and regulators went in audited these financial institutions, they found the net worth had been generated by inflared valuations of assets held as collateral for loans.
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Also, banks insist on collateral against loans and since a large number of Indian women don't have the rights or title to property, they are unable to provide any collateral.
Men swore on their mustaches in sayings and folk tales, used them as collateral for loans and guarantees for promises, and sometimes even shaved their opponents' lips as a punishment.
The destruction of housing values left many US consumers without collateral for loans, and without a means for refinancing as their properties were worth less than what they had paid for them.
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Interestingly, 44% of those that do view it as an investment are buying and holding art more for the diversification and capital protection, rather than the returns, while 41% said they would use their collections as collateral for loans.
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The banks had United Spirits stocks pledged as collateral against their loans to Kingfisher.
Those appraisals often overstated the true values of the properties serving as collateral for the loans.
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Furthermore, it was using a non-marketable instrument (the promissory notes) to provide collateral against these loans.
Maybe the Spanish team could be used as collateral for some loans from Germany to bailout the Spanish banks?
Other mainland banks have opened offices too, and from their sleek towers they make collateral-free loans to Chinese companies.
As collateral for the loans, the four companies assigned 93% of their voting rights to none other than Mr Tan.
Say the ECB steps up to support Italian banks or even Italy itself and it then inncurs losses on the collateral for the loans.
They also use requisitioned land as collateral for bank loans, adding to the potential woes of a banking system in which risk is poorly understood.
Kingfisher owner Vijay Mallya is struggling to keep the airline afloat and has pledged personal and UB Group assets as collateral against the loans.
This drove up prices, which because houses are collateral for housing loans, led to futher easing in lending standards and a further increase in price.
Moreover, the Fed's operation on August 10th was also slightly unorthodox, as the collateral for cash loans was entirely in mortgage-backed securities, albeit ones guaranteed by federal agencies.
Lay put up a chunk of his Enron stock and a smaller percentage of his more liquid assets (cash and real estate, for example) as collateral for the loans.
But by taking them as collateral for temporary loans and at a discount, it would lose money only if there is a bankruptcy among the market-makers borrowing Treasury bonds.
But because the rights to these assets are not legally defined, they cannot be used as collateral for bank loans or as any form of capital useful in establishing and expanding a formal business.
Mr Modipane was obliged to resign as provincial finance minister last year after allegations were made of his involvement in a fraud whereby 32 provincial game parks were illegally used as collateral for offshore loans.
These loans resurfaced earlier in the summer when it was revealed that one of the lenders, the Spanish savings conglomerate Bankia, might have to put up Ronaldo and Kaka as collateral for further loans from the European Central Bank.
John Bella, managing director in ABS at Fitch Ratings, said net losses on auto asset-backed securities have fallen steadily since the crisis four years ago, and the deals are now backed by stronger collateral, or loans made to so-called prime borrowers.
Mr Ross stepped down as director of Carphone Warehouse, which he co-founded, after it emerged that he had used millions of pounds worth of shares as collateral against personal loans without informing the company's other directors - a potential breach of City rules.
Though Draghi didn't spell out what policy changes could emerge, analysts say the bank could look at ways to encourage lending to midsize companies that could allow banks to bundle small business loans as securities and park them at the ECB as collateral for central bank loans.
The idea of offering gold as collateral to get cheaper loans is common practice in Asia.
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