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As U.S. banks face stricter capital standards due to Basel III regulations, some are exploring...

As U.S. banks face stricter capital standards due to Basel III regulations, some are exploring whether they can use intangible assets held by their borrowers, such as patents and trademarks, as collateral in order to cut the risk weight of their loans and overall capital requirements. Banks have always had the right to sieze such assets in a foreclosure, but aren't able to count them against the loans security due to the difficulty in calculating a firm value.
Comments (5)
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    you watch...they will use the money in YOUR account as their asset...if they need it..they just take it...
    12 Jun 2012, 05:35 PM Reply Like
  • todd.kaime
    , contributor
    Comments (94) | Send Message
     
    They already do. If you have a loan with the bank you've already signed over your cash as collateral. In fact, you're probably required to keep a compensating balance. Oh wait, you mean those depositors that don't have a loan. Well in that case the bank has no risk.
    12 Jun 2012, 05:50 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    yes no loan..my money..the Jon Corzine thingy....
    12 Jun 2012, 06:07 PM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    I was thinking a lot of their assets were pretty darn intangible already.
    12 Jun 2012, 09:11 PM Reply Like
  • rk22180
    , contributor
    Comments (22) | Send Message
     
    This is just the kind of idea (crap) the continues to erode the trust in banks - if this type of stuff gets thru than it proves there is no real substantial effort to protect the tax payers from getting ****** again. Intangible Assets - imagine fighting over those in the courts. You think some company is going to part with their patents or trademarks because of a loan default, or a violation of loan agreements. Part of the reason you would not want to count same as a tangible asset. Sounds like a license to steal...
    12 Jun 2012, 09:14 PM Reply Like
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