Word: borrower
(lookup in dictionary)
(lookup stats)
Dates: during 1980-1989
Sort By: most recent first
(reverse)
Corporations without sufficient capital can use LBOs to purchase large corporations without using large amounts of cash. But because those companies must borrow money from other sources, they incur a substantial debt, which they usually pay off by breaking up the company and selling off parts at a large profit...
This chameleon style may be a shrewd defense mechanism, designed to mask the harsh reality that Bush is more constrained than any other President in modern memory. The borrow-and-spend policies that Ronald Reagan presided over have bequeathed to his chosen successor a downsized presidency devoid of the resources to address long neglected domestic problems. The Bush campaign strategists -- with the candidate's active complicity -- burdened the new President with an obdurate stance on taxes. And for all of Bush's conciliatory zeal, Congress remains an enemy camp; no elected Republican President in this century has come into office...
...will require taxpayers and S & Ls to share the burden of a rescue that will cost an estimated $126 billion during the next decade. The taxpayer portion would amount to about $60 billion, which would be contained in the federal budget over the next ten years. The Government would borrow $50 billion by issuing 30-year bonds to be repaid through revenues collected from S & Ls. Including the interest expense, half of which will be borne by taxpayers, the total package could cost $200 billion or more over the course of three decades...
...think we should have to pay for serious crimes committed by others." Another complaint by S & Ls is that by combining thrift and banking supervision, the Bush plan may blur the distinction between the two and eventually remove any competitive advantage the thrifts still have, principally the ability to borrow long-term funds from federal Home Loan banks. Commercial banks are restricted to taking shorter-term loans from Federal Reserve banks. Besides paying higher premiums under the Bush plan, S & L owners would be required to follow stricter accounting rules and to boost their reserve capital from 3% of assets...
Because Kelso's method of paying for the stock-purchase plans was to borrow against corporate assets, ESOPs also gave rise to the leveraged buyout. But Kelso never intended his technique to be used for buyouts that would put all of a company's stock in the hands of a few investors and top managers. "That is a perversion of my idea," says Kelso, now 74. "Instead of making economic power more democratic, they make it more plutocratic...