When they're doing a transaction with just one other party, they have to reserve a significant amount of capital to the extent they can do it in a central fund, and the fund is providing backstop for all the other players.
Then, earlier this week, Mr. Buffett offered to provide backstop insurance for $800 billion of municipal bonds insured by the troubled companies, for a hefty fee.
FAO, in cooperation with NGOs, provided technical backstopping for land reform programmes in The Philippines and developed a methodology for increasing rural income and food security.
This new protection will provide backstop coverage to drivers when they are in match mode and are not providing rides.
For this to work, there must be a European banking resolution mechanism to recapitalize banks and provide a backstop for a euro-zone-wide deposit guarantee scheme.
It would also provide a backstop for struggling homeowners, since the trust would have the legal right to step in and assist residents in the event of foreclosure.
Timothy F. Geithner, the Treasury secretary, and Shaun Donovan, Housing secretary, are among the advisers who believe that the government must provide a backstop for the industry, in part to ensure the loan availability.
Federal regulation can provide a backstop for states that seek to protect their residents from what they view as predatory loans, setting a nationwide regulatory floor backed by federal enforcement resources.
The company had withdrawn an earlier bid over the weekend because the federal government refused to provide a backstop for the deal the way it had for Bear Stearns.
At the same time, the UAE has signaled its willingness to maintain production, not only in alliance with the Saudis vis a vis the Iranians, but also because Abu Dhabi needs to provide a backstop for Dubai, should the finance-centric, non-oil producing emirate fall victim to disturbances in international capital markets as it did in 2008.
