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Macklowe, led by veteran New York developer Harry Macklowe and his son Billy, bet their entire office portfolio as collateral to obtain financing to make that deal happen, leaving other Manhattan investors shaking their heads.
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Innovation and intangible assets must become as attractive as collateral as bricks and mortar.
Credit Suisse, which managed the portfolio of mortgage bonds that served as collateral for the deal, agreed to pay $2.5 million, half of it in penalties, to settle the case.
Analysts estimate that it owes about 6 billion francs ($4.03 billion), and that most of its stock portfolio, now worth about 4.5 billion francs ($3.02 billion), is pledged as collateral to its bank lenders.
Ultimate ownership of this company and other ground rent portfolios was thrown into doubt after certain holding company shares were pledged as collateral to Kaupthing in order to support a loan to younger brother Robert.
They are used as collateral in incalculable numbers of financial transactions, and form the bedrock of investment portfolios by pension managers who may be forced to sell them if they are judged to have gone into default.
He described her case as "collateral damage".
Culture is not hit as collateral damage.
It is unclear whether institutions' portfolio and collateral valuations reflect this reality.
The property and copyrights remain as collateral.
"It's seen as collateral damage.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com