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This means Aubrey borrowed a whole bunch of money using his stock as collateral probably to buy boats and ranches and more CHK stock, so when the stock price plummeted by 70% or more like it did, the bankers just sell you out to pay off your loans.
FORBES: Aubrey's Gone Let's Sing A Song
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So the Federal Reserve agreed to lend it tens of billions of dollars, taking AIG stock as collateral.
NPR: U.S. Boosts AIG Bailout Package
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Big banks and asset managers will have to do a better job of keeping track of margin requirements and the available stock of eligible collateral they have.
ECONOMIST: Collateral management
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Many senators voted for the bill because of last-minute additions forcing airlines not to shut down business in small communities and a provision to allow the government to receive airline stock options as collateral for the loan guarantees.
CNN: Congress approves $15 billion airline bailout
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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.
FORBES: Fraud per capita
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It did this by classifying such subsidiary sovereign debt as the highest quality collateral - which means that banks wanted an ample stock of it, just in case they needed assets to swap for central bank loans.
BBC: The eurozone's borrowing costs may stay lethally high
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As Microsoft shares tumbled in the tech crash, Lewis had to sell stock to meet Merrill's margin calls, demands for more loan collateral.
FORBES: Out of Options
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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.
FORBES: Ken Lay's Self-Inflicted Wounds