Compare the bank's Secondary Liquidity with an industry average of 12%: (Secondary are marketable securities held for liquidity purposes versus TA)      
      Calculate:                                              compare: ____________

Calculate the total Liquidity Position (Total Liquidity is the cash position plus the holding of short-term US Treasuries. Consider all T-bonds are held as collateral since the bank is a Tax & Loan Facility for the Treasury and are not held for liquidity.) Compare the bank's total liquidity with an industry average of 15% of Total Assets).
Percentage:                                          compare: ____________

GIVEN: Cash (Vault +Dep. at Fed) = $9 billion, UST bills = $15 billion, Deposits with Reserve Requirements (DwRR) = $57 billion, Net Income = $1.23 billion, Total Assets = $137 billion, Total Equity = $10.25 billion

Answer rating: 100% (QA)

1 To calculate the banks secondary liquidity position we need to determine the marketable securities ... View the full answer