$($b$)$ Bank of City One has credit asset of $$120$ million with a spread of $85$ basis points over HIBOR. $($HIBOR is currently $1\mathrm{.}77\%$ p$.$a$.)$ Suppose Bank of City One has to pay $70$ basis point of its credit asset value to CDS seller and the new risk weighting becomes $20\%.$ Determine the ROE with the use of the CDS$.$

Additional information: The Bank aims to maintain $10\mathrm{.}5\%$ CAR and funding cost is HIBOR. Assume no reserve requirement.