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(A factor lends money to manufacturers, taking as collateral balances owed by retailers).
The government, that is, is lending cash to financial institutions while taking as collateral the less salable of their subprime mortgages and related securities.
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In exchange for securities from the primary dealer, which are taken as collateral, the Fed credits their accounts with cash.
At the same time the European Central Bank took steps to increase the assets it would take as collateral for loans.
No one knows the real value of the assets formerly owned by Bear Stearns that the Fed agreed to take as collateral.
They bought the gold, silver and diamond jewelry worn by grifters and hoodlums; the coin collections taken as collateral by loan sharks; a diamond guitar pendant worn by a receiver of stolen goods who apparently loved guitars; a bronze sculpture of a whitetail deer that once sat in the office of a master in the art of insurance fraud.
I hate that is something that we have to take as collateral damage of the job, but that's unfortunately, how we have to take it.
As an annex to the prepared remarks of Geithner, the New York Fed released a general explanation of the assets it will take as collateral, and also said it will file quarterly reports on the valuation and recoveries from liquidation of the assets.
Our study demonstrates that collateral values should not be taken as given.
The ECB has a pretty generous and broad definition of the assets or collateral it is prepared to take as security for loans to banks.
That may mean banks taking big hits as the collateral against a loan devalues while the loan does not, but I guess that's the risk they take as well.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com