Question: Between 1980 - 1983 Continental Illinois , a large mid western bank had its assets (ie. Loans) with maturities over a year totaled between $7

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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

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

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!