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Bank A has the following balance sheet in millions of dollars with the Basel II risk weights giver in parentheses | $ 150m | Deposits
Bank A has the following balance sheet in millions of dollars with the Basel II risk weights giver in parentheses | $ 150m | Deposits U. K. Sovereign T-Bonds (0%) Municipal Bonds (20%) Mortgages (50%) Consumer Loans ( 100%) Commercial Loans (20%) Total $1420m $25m S35m S250m Subordinated Debt Tier II S20m 350m Preferred Stock (Tier IS2 $300m | | $450m | Equity (Tier 1) $1500m S1500m Total The bank wishes to keep its Tier 1 ratio at 5%. They will sell a portion of their consumer loans and invest them in U.S. government bonds. How much consumer loans should they sell
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