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Mr. Macklowe pledged the G.M. Building and other assets as collateral.
And before that, it was bank loans using a target's assets as collateral.
Banks can use those assets as collateral for more loans from the central bank.
It risked everything by pledging all of its North American assets as collateral, raising $23.6 billion in 2006.
Because it leases most of its planes rather than owning them, the company cannot use those assets as collateral.
Many pledged virtually all their assets as collateral on those debts, leaving little left to back DIP loans.
The Fed does not just accept any old assets as collateral; it wants assets that are "safe".
By lodging their extra assets as collateral, the intermediaries can put them to work and borrow more.
If they relax collateral requirements, they can accept a wider range of assets as collateral from banks.
Digital registries would also allow the poor to use their assets as collateral, and improve their access to formal credit markets.
Northwest Airlines was granted a waiver on its 2003 obligations, although it had to pledge gates, routes and other assets as collateral.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com