Question: What is the contribution to the asset base of the following items under the Basel II requirements? Under the U.S. capital-to-assets rule?
- $10 million cash reserves.
- $50 million 91-day U.S. Treasury bills.
- $5 million U.K. government bonds, AAA rated.
- $1 million general obligation municipal bonds.
- $40 million repurchase agreements (against U.S. Treasuries).
- $500 million one- to four-family home mortgages.
- $500 million commercial and industrial loans, BBB rated.
- $100,000 performance-related standby letters of credit to a blue chip corporation.
- $7 million commercial letter of credit to a foreign, A rated corporation.
- $8 million bankers acceptance conveyed to a U.S., AA rated corporation.
- $17 million three-year loan commitment to a private agent.
- $17 million three-month loan commitment to a private agent.
- $30 million standby letter of credit to back a corporate issue of commercial paper.
- $4 million five-year interest rate swap with no current exposure (the counterparty is a private agent).
- $6 million two-year currency swap with $500,000 current exposure (the counterparty is a private agent).