Explain why securitization led to an erosion of lending standards.
Team: Team 6 What is Securitization? What are the benefits of, and problems with, securitization? How has it affected the banking industry? The incentives of bankers? Should we impose any standards or constraints on securitization? Why? You might want to focus on the mortgage industry as one of the largest securitized markets in supporting your views.
Explain the role of “securitization” as a cause of the financial crisis of 2008. Be sure to explain what mortgage securitization is and why it caused problems.
1. Explain why this securitization for accounting treatment as
sale.
2. Compute the amounts of total assets retained after this
secuiritization (round 2 decimal places)
total assets (in million $)
retained earnings (in million $)
3. Compute the amounts of total assets and retained esrnings
if this securitization sid not qualify for accounting treatment as
a sale (round 2 decimal places)
total assets (in million $)
retained earnings (in million $)
P8-5 Accounting for a securitization (LO 8-7 ) On...
Is it possible to have no geological (soil and/or wind) erosion at all? Why or why not?
(a) Why is the interbank lending market often called market for reserves? Explain, with the help of a supply/demand diagram, how the equilibrium interbank rate is determined. How are the Central bank's lending rate and the rate paid on banks reserves reflected in your diagram? (30 Marks) b) The Central bank wishes to lower market interest rates- will it buy or sell bonds in the open market to meet this target? Use the relevant market equilibrium framework in your answer....
If new regulations result in banks relaxing their lending standards, then the loanable funds shifts to the O supply of; left demand for; left demand for; right O supply of; right
Explain why the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Advisory Board (FASAB) include budgetary comparisons in their concept statements but the Financial Accounting Standards Board (FASB) does not.
Explain the Fair Labor Standards Act and why was the Act enacted?
If the government enacts legislation which allows lenders to lower lending standards, the government indirectly the demand for which leads to house prices. O decreased; lower o increased; higher o decreased; higher increased; lower
Why is Harley-Davidson trying to attract younger buyers? Why is financing / lending an important issue for Harley as it pursues younger riders? What risks does Harley face by offering greater access to lending services for its buyers? What strategies would you recommend, that are not mentioned in the article, to get younger buyers to purchase Harley's motorcycles? Explain how motorcycles might fit well with younger consumers and their lifestyles.