[quote=qwerty007]Using shares as collateral for a loan is probably a little shaky, but a novel way to cover your losses when those shares tumble.[/quote]

I seem to recall that it was not unknown during the dot-com era … Stamps.com and former CEO John Payne come to mind.

But Kaupthing seems to have taken it to a new level … granting loans for the purchase of its own stock, then announcing it as an infusion of capital.