Question: 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?