Specifically the Brussels summit needed to accept the inevitability of fiscal transfers; trigger their precautionary facility, including for Italy and Spain; and, at a minimum, expand the European stability fund, underpinning it with a backstop facility far bigger than its current size.
Goldman, for example, secured a backstop facility of at least $1 billion from Sumitomo Mitsui when it bought a stake in the Japanese bank in 2003.
A second, aimed at the Argentina problem, is to set up a devaluation backstop facility that will pay out in the event of a sudden collapse in the exchange rate.
The funding needs of Italy, Ireland, Greece, Portugal, Spain and Belgium just to 2014 could be around four or five times as much as the current €450m backstop facility.
Officials attending the meeting are expected to agree to create a permanent backstop facility for the euro after 2013, when the current mechanism expires, without requiring authorizing votes in member countries.
The committee is expected to vote on thighlightsxt week.
The rules require companies to trade most derivatives contracts through regulated exchanges — or a new creation known as a swap execution facility – and force most derivatives deals to go through clearinghouses, which act as a backstop in case one trading party defaults.
"We used the fence as a backstop.
In this framework, there is a long-term contract market as well as a backstop spot market.
It can also provide credit lines as a backstop to governments who fear an investor strike.
As a backstop, to ensure savings, the law creates a Medicare cost control board.
