a. The bank's biggest mistake was that it did not recognize that its forecast of a strong

Question:

a. "The bank's biggest mistake was that it did not recognize that its forecast of a strong local real estate market and declining interest rates could be wrong."
b. "Banks still need some degree of interest rate risk to be profitable."
c. "The bank used interest rate swaps so that its spread is no longer exposed to interest rate movements. However, its loan volume and therefore its profits are still exposed to interest rate movements."
Interpret the above statements made by Wall Street analysts and managers
Portfolio
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