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A commercial bank has the following book value financial data (in millions): Assets: $100 Insured Deposits: $50 Uninsured Deposits: $25 As a result of loan

A commercial bank has the following book value financial data (in millions):

Assets: $100 Insured

Deposits: $50

Uninsured Deposits: $25

As a result of loan defaults, the market value of the assets has decreased to $60 million. Assume in the problem that bank failure resolution is handled by the insured depositor transfer method.

a. What is the cost of failure to the insured depositors?

b. What is the cost of failure to the uninsured depositors?

c. What is the cost of failure to the shareholders?

d. What is the cost of failure to the FDIC?

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