Suppose cbi faces a withdrawal of 50 billion dollars show


Casino Banking Inc. Balance sheet

Assests $ (billions) = 50 reserves, 50 t bonds, 250 CDOs, 250 Loans

Liabilities $ (billions) = 300 deposits, 200 borrowing, 100 bank capital

1. Suppose CBI faces a withdrawal of $50 billion dollars. Show four different ways CBI can deal with this problem.

2. What is the problem in 4a called?

3. Supposed CBI loses $150 billion in CDO investments. What is this problem called? Show this with a balance sheet.

4. How will this problem be resolved?

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Financial Management: Suppose cbi faces a withdrawal of 50 billion dollars show
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