Your English writing platform
Discover LudwigExact(18)
Financial intermediaries routinely require extra collateral when firms run into trouble.
If that happened, the bank would be forced to put up billions in extra collateral, eating into its liquidity.
That has probably cost it an extra one-third of a percentage point on its funding, plus extra collateral to allow its trading counterparties to sleep more easily.
The money, which was sent Thursday night, is part of the extra collateral that MF Global posted to reassure JPMorgan during the brokerage firm's final days.
When MF Global posted extra collateral to back its trades, aiming to reassure JPMorgan about its precarious position, some of the funds most likely belonged to customers.
They also identified several benefits and mitigating factors, like the inclusion of extra collateral and a special reserve account to cover equipment failures.
Similar(42)
Finland is demanding special collateral.
By lodging their extra assets as collateral, the intermediaries can put them to work and borrow more.
The downgrade increased the risk associated with the bank and Morgan Stanley said it has had to put up an extra $6.3bn in collateral to meet requirements associated with derivatives contracts following the downgrade.
This is for several reasons, notably the massive extra burden of margin collateral that it could place on market participants," S&P said.
He estimates that every extra dollar of housing collateral now translates into six or seven cents a year of extra consumer spending, compared with only three pence in the pound in Britain.Institutional differences may explain the gap.
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com