Lender
in sentence
215 examples of Lender in a sentence
Now, we've seen this before in the savings and loan debacle, and we know that this kind of fraud can only originate from the lenders, and that no honest
lender
would ever inflate the appraisal, because it's the great protection against loss.
We had incredibly early warnings of it, and it was absolutely unambiguous that no honest
lender
would make loans in this fashion.
In response to that, the industry first started calling these loans liar's loans, which lacks a certain subtlety, and second, massively increased them, and no government regulator ever required or encouraged any
lender
to make a liar's loan or anyone to purchase a liar's loan, and that explicitly includes Fannie and Freddie.
Congress, it may strike you as impossible, but actually did something intelligent in 1994, and passed the Home Ownership and Equity Protection Act that gave the Fed, and only the Federal Reserve, the explicit, statutory authority to ban liar's loans by every lender, whether or not they had federal deposit insurance.
Twenty or 30 years ago, if a bank in North America lent too much money to some people who couldn't afford to pay it back and the bank went bust, that was bad for the
lender
and bad for the borrower, but we didn't imagine it would bring the global economic system to its knees for nearly a decade.
In fact, it became the largest rehabilitation
lender
in the country.
The moral of the tale is not, as Polonius instructed his son Laertes, “neither a borrower nor a
lender
be.”
Taken together, these steps address the core problems – the stigma associated in the past with IMF conditionality, the availability of early pre-crisis financing, and the overall size of rescue packages – that have sometimes diminished the effectiveness of the Fund’s role as a crisis
lender.
But Draghi has indicated that he is reluctant to see the ECB become a
lender
to governments.
Merkel and Sarkozy need to make the case that if the euro is to become a normal currency, Europe needs a normal central bank – one that does not merely target inflation like an automaton, but that also understands its responsibilities as a
lender
of last resort.
For the SDR to become a true international currency, in other words, the IMF would have to become more like a global central bank and international
lender
of last resort.
Moreover, the country’s banking system is supported by its rich neighbor’s demonstrated willingness to act as a
lender
of last resort.
If the banks are merely illiquid, the Federal Reserve in Washington is ready to act as a
lender
of last resort.
Investment funds other than MMFs account for 29% of total, and SIVs make up 9%, but the shadow system also includes public financial institutions (such as the government-backed mortgage
lender
Fannie Mae in the US).
If the ECB is the eurozone’s
lender
of last resort, Europe’s leaders agreed, it must have direct knowledge of its potential clients’ balance sheets.
But there is a strong case for allowing the ECB to act as
lender
of last resort.
In other words, prohibiting the central bank from acting as
lender
of last resort can push solvent economies into a needless debt crisis, undermining output and employment.
Just as the dollar is often the unit of account in debt contracts, even when neither the borrower nor the
lender
is a US entity, the dollar’s share in invoicing for international trade is around 4.5 times America’s share of world imports, and three times its share of world exports.
Why, for example, did China’s decision to accumulate foreign reserves result in a mortgage
lender
in Ohio taking excessive risks?
Already, Douglas Flint, the chairman of HSBC, Europe’s biggest lender, has declared that the bank reserves its right to “move people between London and Paris.”
Later, their mission was expanded to include the role of
lender
of last resort.
When the Fed in 2007-2008 entered into swap agreements with 14 central banks, including those of four emerging economies (Brazil, Mexico, Singapore, and South Korea), it de facto acknowledged that it is the world’s
lender
of last resort in dollars.
The Fed’s reluctance to serve as the world’s
lender
of last resort, or to acknowledge that exchange-rate movements cannot undo its actions abroad, would seem to condemn it to being a parochial and inward-looking institution.
And in a largely dollarized world economy, the only certain tool for avoiding such crises is a
lender
of last resort in dollars.
The IMF could have been that lender, but it is not.
National banking systems need a
lender
of last resort.
In short, the ECB bond-buying program has transformed the ECB from a passive observer of the euro crisis, paralyzed by the outdated legalistic constraints of the Maastricht Treaty, into a proper
lender
of last resort.
First, the good news: the European Central Bank proved itself an efficient
lender
of last resort to Europe’s financial system.
Even the euro area, which is far more cohesive than the world as a whole, has not quite figured out how to use its central bank as
lender
of last resort.
Countries that qualify ought to have access to a
lender
of last resort and be empowered to pursue countercyclical policies.
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