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Still, Panayiotou is among the few Greeks with zero liabilities: one out of every six owe the government unpaid taxes.
This difference is predominantly caused by different ways of accounting for derivatives; to simplify things, GAAP allows a bank to net its positions against each other (if I have a $100 trade with one counterparty and an opposite $100 trade with another counterparty, that counts as zero assets and zero liabilities), while IFRS doesn't.
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"We could wind up with zero liability," Mr. New said.
Credit card agencies advertise a zero liability for credit card fraud.
If a financial institution chooses to impose zero liability for unauthorized EFTs, it need not provide the liability disclosures.
With plausible parameter values, our analysis shows that the intermediate liabilities over a full or zero liability are preferable on both economic efficiency and equity grounds.
And thanks to so-called zero liability policies, the cost of fraud is generally absorbed by the credit card companies, merchants and banks.
It is time to consider whether the current regulatory setup, which allows all software vendors to externalize the costs of all defects and problems to their customers with zero liability, needs re-examination.
"They have a high degree of fear and anger when it's stolen, even when they have zero liability".
For instance, if a credit card is lost or stolen, federal law limits consumer liability to just $50, although most major card issuers offer zero liability.
At Capital One, in addition to a zero liability fraud policy, credit card holders have access to an account-monitoring program called Second Look.
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