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This is similar to the idea of a collateral exchange that I have blogged about.
What could be done? A. I think there is an interesting idea for some kind of collateral exchange, if there was an eager entrepreneur out there.
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The Fed said on Aug. 24 that it would accept asset-backed commercial paper as collateral in exchange for central bank loans, and the E.C.B. has lent billions in cash to banks in seven special auctions since Aug. 9.
They eventually resorted to unconventional strategies, like offering apartments as collateral in exchange for loans.
Finland, another skeptic, still wants Greece to post collateral in exchange for more loans.
Finland has also insisted on receiving collateral in exchange for its participation in eurozone bailouts – which has impressed Moody's.
The shares will be given to the creditor banks as collateral in exchange for short-term financing, the bank said.
Pawnshops get their name from the fact that customers can "pawn" merchandise as collateral in exchange for a loan.
We will hold monthly repo auctions to provide predictable and regular access to high-quality collateral in exchange for a very broad range of collateral.
Here's the F.D.I.C.'s explanation: It says it plans to carefully vet every loan that gets made and it will receive fees and collateral in exchange.
Michael Hewson, of CMC Markets, said: "The reason Finland appears to have escaped [the cut to negative outlook] is due to its insistence on collateral in exchange for aid.
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