Given its steady income, its low level of debt and its pristine credit record, it never had any trouble getting a loan, says Martin Scott, the firm's finance director.Hall & Woodhouse needed more reliable long-term creditors, so it reduced its bank borrowing and turned to a shadow bankThe financial crisis changed all that.
They decided they needed more reliable long-term creditors, so they reduced their bank borrowing and turned instead to a shadow bank a financial firm that is not regulated as a bank but performs many of the same functions (see article).
In the long term, creditor countries' currencies tend to strengthen.
"For a lawyer to supplement or replace the banks as a long-term mortgage creditor of homeowners leaves me a little queasy," said Mr. Brickman, an expert on contingency fees.
The joint report from the African Development Bank (AfDB) and Global Financial Integrity (GFI), a US research organisation, says the continent has been a long-term net creditor to the rest of the world.
Let them explain why they are so intent on saving the banks' bondholders, even the long-term unsecured creditors who clearly knew they were taking market risks in buying Citibank bonds.
"The purpose of the call is to better understand how Bank of America is navigating the economic environment and positioning its balance sheet for the long-term benefit of customers, creditors, and shareholders," Fairholme said in a release.
But the two companies have until March 31 to produce a plan for long-term profitability, including concessions from unions, creditors, suppliers and dealers.
Government officials said a long-term solution would require concessions by creditors, unions and management, and that there was little chance the government would again take an equity stake.
With the Long-Term Capital bailout as a precedent, creditors came to believe that their loans to unsound financial institutions would be made good by the Fed — as long as the collapse of those institutions would threaten the global credit system.
We know that Long-Term Capital Management and some of its creditors are at risk, but by now the market should have some understanding of the degree of that risk.
