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Exam (elaborations)

FDIC TE Set 100 Study Guide Solutions

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FDIC TE Set 100 Study Guide Solutions Capital - Equity Exposures SRWA 300% - ANSWER-Publicly traded equity exposure (other than a 600% and including ineffective portion of a hedge pair) Capital - Equity Exposures SRWA 400% - ANSWER-Equity exposure not publicly traded (other than 600%) Capita...

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  • November 26, 2024
  • 27
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • FDIC
  • FDIC
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EmillyCharlotte
FDIC TE Set 100 Study Guide
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Capital - Equity Exposures SRWA 300% - ANSWER✔✔-Publicly traded

equity exposure (other than a 600% and including ineffective portion of a

hedge pair)


Capital - Equity Exposures SRWA 400% - ANSWER✔✔-Equity exposure

not publicly traded (other than 600%)


Capital - Equity Exposures SRWA 600% - ANSWER✔✔-An equity

exposure to an investment firm that has greater than immaterial leverage

(ie. hedge fund)


Asset Quality - Bankruptcy Basics Chapter 7 - ANSWER✔✔-Liquidation:


Assets Liquidate


Proceeds distributed


Debts discharged



Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/27

,Asset Quality - Bankruptcy Basics Chapter 11 - ANSWER✔✔-

Reorganization




Borrower keeps assets


Debts restructured


All creditors vote on restructuring plan


Majority vote binds minority


Asset Quality - Bankruptcy Basics Chapter 13 - ANSWER✔✔-

Reorganization - individuals




individuals <100M unsecured and $350M secured


Only secured creditors entitled to vote


Asset Quality - RE appraisals 3 basic valuation approaches - ANSWER✔✔-

Cost Approach -Estimate of reproduction cost of building/improvements

less depreciation plus land value




Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/27

, Market data/Direct Sales Comparison - Estimate based on sales price of

comparable




Income Approach - Discounted value of future net operating income

stream, including any "reversion" value of property when sold


Asset Quality - RE Appraisal Exemptions Part 323 - ANSWER✔✔-<250M




<1MM business loan and not dependent on sale/ income of collateral




Existing credit if: no new monies advanced (except closing costs); no

monies ok if no material change to RE mkt




CRE < $500M




Abundance of Caution




Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/27

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