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And it has begun to "cross collateralize" its loans -- allowing it to take collateral from one loan in repayment of another to the same borrower.
Will that bank have received adequate collateral from the clearinghouse?
One teller even accepted a gold watch as collateral from a customer.
After the rescue, Goldman received an additional $2.6 billion in collateral from A.I.G.
Or he reads philosophy from books his father held as collateral from a poor scholar.
But it, too, faced heavy losses on investments, including loan collateral from Lehman Brothers.
Their niggardly lending, they say, is due to problems seizing collateral from borrowers who don't pay.
Finland continues to demand that it receive collateral from Greece in return for aid to that country.
On Aug. 10, UBS asked for an additional $12.7 million in collateral from Paramax and, on Aug. 22, called for almost $14 million more.
Those developers fear that when their banks realize that their investments with Mr. Madoff have disappeared, they will demand new collateral from other sources, Mr. Reisman said.
Indeed, of the 22 institutions that have received either collateral from the government or cash payments to close out credit insurance deals, 16 are foreign.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com