What happens when there is no equity infusion and the bank goes in to bankruptcy.
Review of balance sheets. Difference between illiquidity and insolvency.
What it means when the market value of a stock is different from its book value.
Different ways of accounting for an asset. Mark-to-model vs. mark-to-market.
How the bank can liquidate assets to pay off debt that comes due.
The bank gets bailed out by an equity infusion from a sovereign wealth fund.
What happens when there is no equity infusion and the bank goes in to bankruptcy.
How the banks are connected. What happens when one bank fails.
Why a CDO could be worth nothing even though they are "collateralized".
A real life example of a transaction involving CDOs.
A solution that is MUCH fairer that has a MUCH better chance of working!