JPMorgan is making the loan, but the Fed is backing it up by agreeing to take Bear Stearns' collateral and not hold JPMorgan responsible if the collateral is rendered worthless.
The amount of collateral should not be a determining factor of effective control, the board proclaimed.
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Officially, the SBA says that the absence of collateral should not be justification for declination of a loan application, which is meant to give consideration to low-income entrepreneurs.
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For instance, they are carrying large off-balance-sheet liabilities and have secured loans with collateral that does not exist.
Now, if there was not collateral damage, if this was just a matter of my politics or being able to persuade the American people to my side, then I would just stick to my guns, because the fact of the matter is the American people already agree with me.
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If there is demand for SME loans, including no-collateral financing, should not the market provide it?
Backed by collateral, such borrowing would not show up in the general government borrowing figures.
In those days U.S. Treasury bills and bonds were not acceptable as collateral for note issuance at the reserve banks.
But unlike bank loans, commercial paper is not backed by collateral.
They have a contract signed by the local chief, but no bank will accept it as collateral, because it is not enforceable in a court of law.
Unlike loans, credit lines are often not backed by collateral and are revolving, meaning that a company can borrow up to a set limit and free up credit by paying off existing debt.
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Writing a loan down, on the other hand, means that it stays on the bank's balance sheet at a reduced but perhaps still inflated value, and the collateral backing the loan is not sold.
She applied for a loan equal to the full value of the land but does not put up any collateral.
To paraphrase Warren Buffett, when the tide goes out you get to see who is not adequately covered by collateral.
Greek banks are frantically borrowing euros from the ECB, using Greek government bonds (valued at par, not at market) as collateral.
This means making sure high-quality government bonds, say, are not needlessly tied up as collateral for trades where lower-quality assets would be acceptable.
One option would be to keep tenders fixed, but to ask for collateral that covers the entire bid and not just the funds allocated.
Their opinions matter principally because the European Central Bank (ECB) says it will not accept Greek bonds as collateral if the agencies declare they are in default.
First, bondholders will not be allowed to seize collateral either.
But as the federal government and regulators attack this crisis, ICBs are becoming collateral damage as the new regulatory regime does not differentiate enough between big banks and small ones.
Smaller companies also found buying on wholesale markets difficult, because they needed high levels of collateral in order to buy and there was not a diversity of products on offer.
Finally you need to remember in the context of the Jones case, Miss Currie was at best a peripheral witness on a collateral matter that the court ultimately determined was not essential to the core issues in the case.
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The brokers may have been pledged collateral against their hedge-fund loans but, as Merrill Lynch recently discovered in its dealings with two Bear Stearns hedge funds, it may not be possible to sell that collateral for anything like the current market price.
"There are not that many borrowers who have sufficient collateral and cash flow who want to borrow money, " says Beal.
The Wilf family did not need to use their team as collateral.
Mr MacKenzie, who says he has been "deeply affected by the affair", adding that he is not a victim but has "suffered collateral damage".
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As the banks who sold on these mortgages were not putting up their own money as collateral, they no longer used their own in-house bank managers to assess the income of their borrowers and check the real value of the house they were giving a mortgage on.
McVeigh lawyers then attempted a second round of "collateral" appeals, which may be granted but are not automatic in federal capital cases.
Paulson, who is suffering collateral image damage from the charges against Goldman, though not a party to the case himself, is out telling investors the same thing.
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