Because the insurers took collateral in return, the practice had been considered safe.
Because Finland has taken such a hardline stance with Greece, demanding collateral in return for its aid packages.
The banks, whose debt is not secured by any of HealthSouth's assets, are expected to demand collateral in return for giving HealthSouth access to the credit line.
Officially, the Fed won't be buying mortgage-backed securities outright: it's only accepting them as collateral in return for loans.
On Saturday, Sept. 13, for instance, the Federal Reserve allowed the big banks to pledge new types of collateral in return for overnight capital.
Finland is also close to resolving a dispute about its demand for collateral in return for granting more aid to Greece.
Euro zone countries continue to negotiate with Finland on Helsinki's demand that it receive collateral in return for contributing to the bailout fund.
The E.C.B. demands collateral in return for the loans, but it accepts securities that have lost value on the open market, including bonds from Greece.
Under the latest agreement, the Federal Reserve Bank of New York will accept up to $37.8 billion of fixed-income securities from A.I.G.'s regulated life insurance subsidiaries and will give the subsidiaries cash collateral in return.
BITS Finland Throws a Wrench into Europe's Bailout Agreement | Demands by Finland that it receive collateral in return for bailout funds for Greece are threatening a euro zone agreement to expand the fund, according to The New York Times.
In Europe many funds found that the assets they pledged as collateral in return for financing from Lehman have become trapped in the bankruptcy process as administrators strain to work out which assets genuinely belong to clients.
