In the event of widespread defaults, the lenders' 10% capital would offer an initial buffer, with the FMIC backstopping the remaining 90%.The plan is neatly packaged, but worrying.
The Treasury is backstopping their capital and the Fed is helping them refinance their debts by buying up to $200 billion of their bonds in the open market.
The Obama administration has proposed several options for a smaller federal role in backstopping mortgages: the companies' regulator is exploring how to draw private insurers into the mortgage market via loss-sharing arrangements with Fannie and Freddie.
He'd gotten the Kings into the playoffs this season, backstopping a team that finished next to last in goals scored.
Between Fannie, Freddie and other agencies, the government is currently backstopping about nine out of 10 new mortgages, stepping in to foster a functioning mortgage market as the effects of the housing downturn linger.
"What's fascinating is — to finance these wind projects, it's hundreds of millions of dollars," Mr. Bowman said, "and what is backstopping that entire investment is somebody saying, this wind project is going to produce this amount of energy each year for the next 20 years.
Capital flight would accelerate, weakening banks and the sovereigns responsible for backstopping them.
Instead of tackling structural problems, much of the endless chatter about the common currency centers on financial engineering: rescue funds, backstopping banks, printing money and the like.
They are backstopping warranties on solar panels, helping start-up companies with short track records offer multidecade guarantees on their products and win over skeptical customers and project financiers.
Administration officials say that they frequently refer to Washington's experience in thawing the credit squeeze and backstopping financial markets after the failure of Lehman Brothers in September 2008.
But Michael Leighton had just returned from injury, and he was stellar in backstopping most of the comeback against the Bruins and the five-game defeat of Montreal in the conference finals.
