When Reijtenbagh paid back some of the money to his company, using Credit Suisse's private equity collateral, Credit Suisse sued Reijtenbagh for fraud.
Even borrowers with stellar credit and cash collateral are experiencing a more rigid lending process.
There may also be too few small businesses because small-business owners may find it difficult to access credit markets without collateral, or administrative costs of complying with the appropriate laws may make small-scale firms less competitive.
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This forced financial firms to increase collateral for credit default swaps--which meant more calls for new capital.
Oftentimes, goods are bought on credit with the only one collateral -- trust.
Under this rule supervisors should require financial institutions to value assets using a long-term moving average when they are pledged (explicitly or implicitly) as collateral for new credit.
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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In particular, they tend to lend for short periods and then only against collateral with a high credit rating.
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That will lead lenders to "tighten restrictions on credit facilities, either through taking collateral, reducing the size of the facility, or restricting borrowing base calculations, " the agency said.
Then, credit structures start to loosen like less collateral, easier covenants or fewer restrictions.
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This also happens if there are credit downgrades on the bonds posted as collateral.
One of Berkshire's portfolio positions is Moody's, whose credit analysts blessed all the offerings of collateral debt obligations.
All a credit event would do is convert those collateral payments from collateral into profits or losses: the money has already been found and moved.
Unfortunately, however, both cash flows and collateral values are themselves distorted by credit bubbles.
According to two sources, the sisters recently took out a line of credit from Citigroup and used their trust as collateral.
Since the deposit acts as collateral, you can get the credit card at low risk to both you and your lender, so approval is likely to be easy, regardless of how bad your credit is.
The cash took the form of either banknotes or a credit balance at the Federal Reserve bank that held the collateral.
Secured credit cards are easier to get than traditional cards because they have collateral.
The previously undisclosed debt meant the Credit Suisse funds no longer had an exclusive claim on their loan collateral.
Securitisation is really an arbitrage: with surplus collateral, assets can be bundled into an entity with a supercharged credit rating.
In a boom, rising property prices increase the value of the collateral held by banks, which makes them more willing to extend credit.
The low limits combined with the collateral limit the damage the cardholder can do, but can help establish credit.
All big banks require hedge funds to back up their swaps with cash collateral that is adjusted daily, says Kathryn Dick, deputy comptroller for credit and market risk at the Office of the Comptroller of the Currency.
They were on hook to Credit Suisse for a substantial loan and needed to find a way quickly to boost the collateral value of their assets.
Many banks have transferred credit-card loans to home-equity loans, which are tax-deductible for the borrower and offer collateral for the lender.
They are still gun-shy about borrowers with poor credit quality and weak assets, but they are very intent on lending to strong borrowers with good properties as collateral.
According to two sources, the sisters recently took out a line of credit from Citigroup (nyse: C - news - people ) and used their trust as collateral.
It also suggests that companies are amassing the materials either as a hedge against inflation or as a means of building up collateral with which to get more loans at a time when monetary authorities are attempting to tighten the credit supply.
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