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Question
If an FI embraces the concept of good bank/bad bank,
A. bad bank assets are passed on to the institutions correspondent bank that is required to accept the assets.
B. good bank assets are organized into a closed end mutual fund which then sells shares to raise funds for the bad bank.
C. the bad bank is a special purpose vehicle (SPV) that is organized to liquidate non-performing loans.
D. the bad bank assets are funded by FDIC insured deposits.
E. the bad bank is placed under the supervision of the Resolution Trust Corporation.
Answer
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