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Explain the forms of compensation typically available to banks who participate in a syndicate.
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Solved in 3 steps
- What is a bank syndicate? How is syndication supposed to work/function? What is the difference between a“true syndicate” and a participation syndicate?Discuss in detail about the Loan securitization as a tool for managing risks by banks. Discuss about the parties involved in securitization process and the benefits of the securitization.Explain the relationship between a payor bank and its customers.
- Identify an investment bank of your choice and explain (a) the type of bank it is and (b) the various conflicts of interest that its activities may involve. Include in your answer examples of deals to illustrate the conflicts you identify.Distinguish between illiquidity and insolvency for banks and discuss the role of capital in protecting against these problems.Why is it necessary for the bank to have the right to assign a mortgage to a third party (for example, a third-party financial institution).
- Explain the difference between the primary and secondary markets. What roles do banks play in these markets?What type of financial institutions may offer the services for reception and transmission of orders in relation to capital market instruments? What conditions are they required to meet in order for providing such services?What federal law protects cosigners on a loan agreement? What is the bank required to do? What other protections are included in this law?
