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To disguise its liabilities, it wrapped them up in private partnerships and took them off its balance sheet.
It was eligible for a program that would have helped it limit its liabilities, but had never filed the paperwork.
As long as the firm's enterprise value exceeds its liabilities, it says, the firm can continue to finance itself.
China will at last earn more on its foreign assets than it pays on its liabilities.
The bank is in default if it cannot cover its liabilities, i.e., if w i <0.
Bank of America acquired Countrywide, but it did not assume its liabilities.
It also agrees to pay its liabilities such as pension contributions.
Bank of America had resisted government demands that it pay $17 billion to settle its liabilities.
"But the reason it produced wonderful returns is that it never reserved enough to cover its liabilities".
It also estimates both its assets and its liabilities at more than $100 million.
When a company accounts for an acquisition, it assesses the value of the target, subtracting its liabilities from its assets.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com