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The ECB asks banks for collateral in return for taking out cheap loans.
Finland is also close to resolving a dispute about its demand for collateral in return for granting more aid to Greece.
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On Saturday, Sept. 13, for instance, the Federal Reserve allowed the big banks to pledge new types of collateral in return for overnight capital.
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.
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.
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.
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.
Because the insurers took collateral in return, the practice had been considered safe.
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