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This was partly related to loans and securities losses incurred or recognized (such as through mark-to-market) - but that the main culprit was more prosaic: it was a sudden freeze in the payments system under the dual impact of collateral calls and a flight-to-safety (overnight lending became unavailable except against top-rated securities and Treasuries).
Additionally, these payments are usually guaranteed by some form of collateral, such as pre-written checks.
Standardization could be achieved by encouraging broader use of standard contracts and electronic affirmation and confirmation services, central storage, automation of payments and collateral management processes, the commission said.
The instrument changed substantially during the 20th century, both in form and use; clauses were added, including those that authorize the sale of collateral, permit extensions of time, and permit acceleration of payment in event of default.
Targeting an API causes a lot of collateral damage – third-party websites, such as eBay, that process customer payments via PayPal will no doubt be affected if the service is sufficiently disrupted.
They use the excuse of collateral damage".
Lack of collateral was invariably the reason.
"There's a lot of collateral damage".
"The amount of collateral damage is huge.
Fourth, inspections are a valuable source of collateral intelligence.
"It comes with a lot of collateral damage.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com