Lecture 11 - Investment Function in Banking

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EXAM - Possible questions from chapter 10 include a problem similar to Prob. 10-5 and 10-6; a question about the 5 investment strategies and their advantages; questions about investment choice factors; differences in accounting for AFS, HTM, and trading assets and liabilities; and NRSROs (credit rating agencies).  See notes file below.

The article below describes the status of the largest credit rating firms (S&P (42.3%), Moody's (36.9%), and Fitch (17.9%))  in 2011.

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Know the general concept of the Volcker Rule related to bank limits on proprietary trading as described in the article below.

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