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Standard & Poor's followed suit on Wednesday, saying that "the bank has a material liquidity gap in meeting its financial obligations in the next 60 days, unless BTG is able to sell assets or access credit facilities with Brazilian financial regulators".
"If you're in a liquidity gap at a time when people do not want to add risk, personally I don't think you should mark all your positions to zero," Mr. Forster said.
"[As a result] the liquidity gap may come faster".
However, the model highlights the challenges in the protection versus liquidity gap.
According to Thomson Reuters, Opel is seeking 3.3 billion-euro ($42.0 billion) from the German government to finance a liquidity gap through the end of 2011.
Successor to the disgraced and indicted Dennis Kozlowski, Breen said the financing "eliminates the liquidity gap" that the megaconglomerate would have faced later in 2003.
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Liquidity providers, who can earn based on spread and commissions, and exchanges often charge premium prices and fees in order to compensate for liquidity gaps.
The fourth question is whether a principles-based approach to regulation is better than a rules-based one.Start with liquidity, the obvious gap in the regulatory firewall.
Instead, as a stop-gap liquidity measure, it allowed employees to sell a small portion of their options in late 2008 through 2009.
That data, covering the U.S. market, shows the massive gaps in liquidity over the years.
Analysts are comfortable that for now, Gap has the liquidity to cover its debt.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com