Lehman then used this collateral as security for its loans, a standard industry procedure known as "rehypothecation".
Banks can then offer this good collateral as security when they borrow.
If the swap counterparty defaults, that leaves the investor holding the contents of the collateral basket as security.
In Afghanistan itself, an increasingly unpopular U.S. air war, with all its "collateral damage," continues.
Mario Draghi, the President of the ECB, said economic conditions do not yet warrant moves such as fining banks for parking money with it overnight, but these and other unconventional measures to fire up the market for asset-backed securities and tweaks to its collateral framework were "on the shelf".
1297, granted an exemption from the imposition of the tax under sections 4321 and 4331 in the case of transfers as collateral security and as security for performance.
Since laws vary, it is important to talk with a financial professional about the viability of obtaining a collateral loan with the use of your pension as security.
Germany undertakes to transfer to the Principal Allied and Associated Powers, within a period of one month from the coming into force of the present Treaty, any sums in gold transferred as pledge or as collateral security to the German Government or its nationals in connection with loans made by them to the Austro-Hungarian Government.
However, BBC economics editor Robert Peston says banks have been told to lodge more collateral with the Bank of Greece as security against the €89bn (£63bn) of emergency lending.
The Senate Committee on Banking and Currency which made a favorable report on the Enabling Amendment gave information to the Senate in its report that millions of dollars worth of collateral had been pledged by national banks as security for public deposits.
Cyber-extortion and its collateral damage aren't new, says Bruce Schneier, chief technology officer for security firm BT Counterpane.
