According to Ecop, it would require a huge financial burden on the part of the service providers, most of which are thinly capitalized
While there are rarely challenges to market concentration when a large company buys a more thinly capitalized
one, depending on size and atmosphere, regulation can become a core issue of a potential partnership.
Stevens said FHFA's Bob Ryan was at MBA's Mid-Winter conference and there was robust discussion about the risks of leaving the two companies so thinly capitalized
1 billion as of March 31, 2015, TAQA is thinly capitalized
relative to its reported debt of AED 74.
If a captive is undercapitalized or thinly capitalized
, the IRS may assert the captive is not bearing risk because it is not in a financial position to do so; in this regard, the IRS may view letters of credit and "naked" guaranties provided by the captive's parent company with suspicion.
The firms are opaque, thinly capitalized
structures whose creditors can "run"--that is, try to withdraw their money, leaving the banks insolvent and nonfunctioning.
tech stock market bubble of the late 1990s and the housing bubble of the 2000s--and argue that the latter's bursting was far more devastating because too many of the consequences fell directly on the thinly capitalized
, highly leveraged financial sector that could ill afford the losses that the bursting created.
Ask about IRS rules on thinly capitalized
businesses and any potential IRS issues related to unreasonable compensation or excess accumulated earnings.
As a rule, insurance industry failures were often limited to small, thinly capitalized
or undiversified companies--mortgage insurers for example--the executives said.
Every national supervisor has an incentive to find that "our banks are safe," even if many institutions are only thinly capitalized
and thus weaken the system as a whole.
Practically speaking, thinly capitalized
corporations are poor credit risks, but piercing the veil may require additional evidence, such as failure to observe formalities.
Hence, the well-endowed corporation provides stronger protection to injured third parties than the thinly capitalized
unincorporated ventures that would otherwise undertake those risky ventures.