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The central bank provided emergency loans, asset purchases and other aid totaling roughly $7.8 trillion during a two-year period ending in March 2009, easily the largest component of the government efforts to bulwark the financial system.
"Options to refinance the facilities include, inter alia, further bank loans, asset disposals, public market bond issues (including equity-linked bonds) or the sale of shares in the company".
The Banking segment specializes in loans, asset management, and mortgages.
Unlike term loans, asset loans are lines of credit, so you pay interest only on the amount you use.
These should be funded by term loans, asset sales or your company's own, honest-to-goodness cash flow.
But soon, he tucked behind his Wall Street-friendly corps of advisors -- Geithner, Summers and Bernanke -- who told him there was only one way to avert another Great Depression and start generating jobs: Resurrect Wall Street with trillions of dollars in loans, asset swaps and guarantees -- and throw in a modest stimulus program.
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Let's assume, for the simplicity of math, that pre-crisis, Citibank had $100 billion in private capital (equity), $900 billion in FDIC insured deposits and $1trillion in loans (assets).
Most mortgage originators do not portfolio loans (they do not retain the loan asset).
In contrast, the willingness to offer microinsurance is negatively correlated with their loan asset ratio, bad loan write-off ratio or average loan size in comparison to GNI per capita (Kwon 2010).
There may be similar problems with student loan asset backed securities.
Just as mortgages were being securitized into mortgage backed securities, student loans are being securitized into student loan asset backed securities (SLABS).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com