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Rehypothecate,,,,,,,,,LOL wow,,,,,,,,,,,,,crazy,,,,,,,,,Not a wonder we are in this mess,,,,,,,,,, 

By: capt_nemo in ROUND | Recommend this post (1)
Fri, 13 Jul 12 5:27 PM | 34 view(s)
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Msg. 42571 of 45651
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To pledge securities as collateral for a loan when the same securities have already been pledged for another loan. Generally speaking, a brokerage rehypothecates when it needs to secure a loan for a client. That is, the client pledges securities for a loan on a margin account and the brokerage uses those same securities to procure a loan from a bank to finance the loan for the client.




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Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.




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