GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW) | ||||||
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19:50 Nov 25, 2009 |
English language (monolingual) [Non-PRO] Bus/Financial - Economics | |||||||
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| Selected response from: Demi Ebrite United States Local time: 02:32 | ||||||
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SUMMARY OF ALL EXPLANATIONS PROVIDED | ||||
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4 +6 | Full value, 100% |
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4 | no discounts offered /accepted |
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no discounts offered /accepted Explanation: u pay the nominal (100%) while everyone else reckon the value is (much) lower hth :) -------------------------------------------------- Note added at 19 mins (2009-11-25 20:09:48 GMT) -------------------------------------------------- ... involved :) |
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Full value, 100% Explanation: The phrase "100 cents on the dollar" means 100%, or 'at full value'. The banks refused to accept a reduced value (payment) to take them on. For instance, in a bankruptcy, creditors may be court ordered to accept payment of 50 cents on the dollar, or half the original debt, to settle it. A settlement of this reduced type is generally seen to be better than nothing, or zero cents on the dollar. Banks want full payment, 100% of the original value on the bad A.I.G. loans, whereas if they would have accepted 80 or 70 or even 60 cents on the dollar to take them on, the outcome would have had a less devestating financial impact on the government and the taxpayers. |
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