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BP has said that it will waive the limits on its liability and pay whatever claims come their way, although there's nothing in the law that compels them to do so.
(B) Begins to pass through without delay all payments it receives on its asset obligations (less reasonable allowances for expenses) as principal payments on its liability obligations in proportion to the adjusted issue prices of the liability obligations.
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The biggest issue is how an acquirer could buy Andersen without taking on its liabilities.
In fact, the fund was virtually empty and the crisis-stricken Icelandic government was refusing to take on its liabilities.
And, although the Fed is currently paying interest on some of its "liabilities," it is doing so purely voluntarily.
China will at last earn more on its foreign assets than it pays on its liabilities.
Instead, America still enjoys a net inflow of investment income because it earns a higher average return on its foreign assets than it pays on its liabilities.
Despite its large net foreign liabilities America has until now earned a surplus on investment income because its foreign assets (largely direct and equity investment) earn a higher return than it pays on its liabilities, such as Treasury securities.
Then, as in America now, the situation arose from a period in which the country had lived beyond its means but was able to use its financial savvy to ensure higher returns on its assets than it paid on its liabilities.
However, from that income the ECB has to deduct the interest it pays on its liabilities in euros vis-à-vis the national central banks.
In addition, it booked a $632 million accounting gain on its liabilities from the perceived improvement in the bank's financial condition.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com