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Steve Collins (@TradeDesk_Steve) I wonder if the #ECB will take the Spanish SilverOlympic Medal as collateral if needed !
The ECB has threatened not to accept Greek government bonds as collateral if the country's debt were restructured.
Under that system, the broker can make a demand for more cash or other collateral if the price of the securities has fallen – known as a margin call.
These triggers mean that lenders can require immediate repayment of the debt or the posting of additional collateral if a company's ratings are downgraded.
The Halliburton Company renegotiated bank agreements that could have forced the company to post $260 million in cash collateral if its credit ratings fell below investment grade.
This means a broker can ask for more cash or other collateral if the price of securities falls, which is known as a margin call.
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Now, if there was not collateral damage, if this was just a matter of my politics or being able to persuade the American people to my side, then I would just stick to my guns, because the fact of the matter is the American people already agree with me.
There will be collateral damage if changes are not made.
So there was some collateral damage, if only to my mood.
But Lehman clearly had some solid collateral, even if not enough for a government takeover of a collapsing firm.
Those contracts required large collateral payments if A.I.G.'s credit was downgraded, as it was that month.
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