Provisions in their charters typically allow the Treasury to lend them money in certain circumstances to shore up the guarantees they issue on loans.
So to the extent that banks have deposits, they can't lend them out in the quantity they used to (or aren't because of tightened credit policies).
In its lawsuit, the department had accused the company of charging customers exorbitant rates to lend them money in anticipation of refunds and tax credits.
Hedge funds, on the other hand, can borrow as much money as their creditors are willing to lend them, and in the case of Long-Term Capital that was a vast amount.
They made submissions to a panel, estimating how much they thought their rivals would charge to lend them money in certain currencies and across a range of timescales from overnight to 12 months.
The landmark event is only the most extreme in a bond market which has featured a clutch of countries that have seen the high demand to lend them money (in the expectation of a safe return) pushing up bond prices – and so driving down the effective interest rate paid on the debt.
You lend them money in the form of purchasing their bond and they owe you back according to the terms of the contract.
They cannot open bank accounts, and no one would be so foolish as to lend them money.In this section America's next CEO?
