To protect itself against potential losses should the pledged stock fall in value, the bank then hedges its bet by borrowing the pledged shares from the executive and selling them short, betting that they will fall in price.
It also said it would raise $3 billion by borrowing and pledging assets to secure the loans.
As competition intensified, AMR drastically increased its borrowing, eventually pledging nearly all of its assets and leaving it heavily indebted.
Politically, the Home Office's announcement is an astute move because it borrows a pledge made by Conservative leader David Cameron earlier this year.
Bain specialized in leveraged buyouts, buying control of companies with borrowed money, pledged against those companies' earnings or assets.
It is easy to see why names such as Philip Carroll, a former boss of Royal Dutch/Shell's American subsidiary, are doing the rounds in Washington, DC and equally easy to see why this generates cynicism.Capital needsAs for raising money, private-sector oil firms frequently borrow by pledging their reserves as collateral.
It would not be a "competitor" to the IMF, based in Washington, DC, though it would seek to police the fiscal policies of lax member countries.Cynics suggested this was a ploy to talk down Greece's borrowing costs—a pledge of concrete action made in the knowledge that agreement on such a body could not be brokered quickly, if at all.
He put economic credibility at the heart of the manifesto, promising no extra borrowing for manifesto pledges, but also announced a smattering of fresh policies, including a one-year freeze in rail fares, protecting tax credits, broadening access to childcare and bringing forward their commitment to increasing the minimum wage to £8.
For example, you can establish an incident of ownership if you control the policy in some way: borrow against it, pledge it as collateral, or assign it under a contract.
Even though the Texas Lege beat the U.S. Cong to the punch in making flag pledging an officially gummint-sanctioned ritual, the Texas Pledge rashly borrowed its vocabulary from the national pledge, which dates from 1892.
