Bill was a rancher and owned 500 sheep. Vandals cut a hole in the fence that kept Bill’s sheep in his pasture and 200 sheep escaped from the hole. The….
Pick three financial institutions, one from the US, one from the UK and one from Continental Europe.
Pick three financial institutions, one from the US, one from the UK and one from Continental Europe. Download their annual reports for a pre—crisis year (i.e. before 2008). Use their balance sheets to ascertain whether these banks are best described as retail, investment or universal banks. How do the banks you have chosen vary in regard to the key concepts discussed in this chapter (refer to Chapters 5 and 6)? Your comparison should refer to:
(a) The leverage of each bank.
(b) The level of interconnectedness of each bank with governments and foreign banks.
(c) The holdings of mortgage-backed securities of each bank.
(d) The funding structure of each bank (e.g. debt vs. equity, short— vs. long-term).