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To: Ken98 who wrote (71128)	10/22/1999 11:36:00 AM
From: Ilaine	Read Replies (1) \| Respond to of 86076

I think the really significant list of acceptable collateral is that of FDIC ~ the Federal Reserve can't shut down a bank for not having sufficient collateral, and the FDIC can. Have you read anything about FDIC expanding their definition?

To: Ken98 who wrote (71128)	10/22/1999 11:45:00 AM
From: Defrocked	Read Replies (2) \| Respond to of 86076

If they play "hanky panky" I'm sure it will be at a penalized rate above market. Most firms will want to go the other direction,IMHO, and be extra cautious as the end of year appoaches. The facility is supposed to be used for a backup or as insurance. Besides, B/Ds have to take all kinds of haircuts on regulatory capital. Scrambling around for funds would be viewed by regulators and the Street as poor form and bad management. Not to say there won't be any bad apples but their reputation would get tarnished, potentially increasing their borrowing costs over the longer run. BWDIK.