On Monday, Infinity World Development, a subsidiary of Dubai World, charged MGM Mirage with defaulting on obligations in connection with a joint venture with Infinity to design, construct and operate a development on the Las Vegas Strip called CityCenter.
He was arrested in connection with an allegation of assault.
We are not going to review the details, since many of the same issues arise in connection with Default Logic (which is discussed below), but Horty (1994) provides an extensive survey.
A different set of issues arises in connection with the behavior of default logic from the point of view of computation.
The Khans and their business, Digital Age Capital Ltd., received a summons from Deutsche Bank Securities in 2005 in connection with what appeared to have been a default in an earlier settlement.
And it reported that the net losses would be an order of magnitude lower, with the maximum amount of funds that would move from one bank to another in connection with the settlement of CDS claims in a default being just €2.68 billion, total.
"Given the correlation between negative equity and likelihood of default, the failure to write down principal in connection with loan modifications is a glaring flaw in current efforts," the state regulators noted in their report.
The literature on this topic has developed especially in connection with Basel II, which allows banks to set up an internal rating system, that is, a system to assign ratings to the obligors and to quantify the associate probabilities of default.
