Between 1980 - 1983 Continental Illinois , a large mid western bank had its assets (ie. Loans) with maturities over a year totaled between $7 and $8 billion whereas it liabilities (ie. Deposits) with maturities over a year were between $1.5 and $2.5 billion. While considered "too big to fail" by many at the time the FDIC (US Government insurer) let them fail in 1984.

What risks did the bank face during 1980-83?

Question 28 options:

Credit Risk

Market Risk

Operational Risk

Credit and Operational Risk

Market and Operational Risk

Market and credit risk

Answer rating: 100% (QA)

During 19801983 Continental Illinois like any other bank faced various risks including 1 Credit Risk ... View the full answer