The losses are covered by insurance, but anyone who's dealt with an insurance company lately knows they're not in the business of indemnifying you indefinitely.

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Policymakers repudiate market discipline regularly, such as with, say, federal deposit insurance, rebuilding beachfront homes at taxpayer rather than insurer expense, and indemnifying makers of homeland security technologies when their products fail.

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The committee also expressed concerns that the Treasury was not aware of "either the risks it has taken on by indemnifying the Bank of England against losses on Quantitative Easing or the expected economic benefits".

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But Mr Lerach also says that his fees (typically 12-15% of an award, but less on Enron) are based, in part, on whether he can force the banks to stop indemnifying themselves against their due-diligence failures as underwriters of securities.

ECONOMIST: Face value

Grais said his clients had presented claims a year earlier to BNY Mellon, which did nothing, and accused BNY Mellon of "conflicts of interest that raised serious doubts about its motives, " including a letter indemnifying itself from costs associated with the settlement.

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