Continental Illinois National Bank and Trust Company of Chicago - Failed in 984 during the oil and gas depression of the early 1980 's. Was largest bank ailure in history until the Washington Mutual failure Write an essay where you answer the questions : - Management and Governance - What management decisions, whether strategic or tactical, contributed to the failure? - Once the crisis was apparent, what management actions were taken to save the bank? How were those actions successful and unsuccessful? - Did the board change management of the bank? - Was fraud a contributor to the failure? If so, describe. - Balance Sheet - Were unhealthy asset and/or liability concentrations part of the bank's problem? If so, describe the nature of the concentration, how it emerged, and what caused it to become unhealthy. - Was the bank adequately capitalized compared to peer institutions? - Did the bank have an adequate allowance for loan losses? - Income Statement - Was unhealthy dependence on certain revenue sources part of the bank's problem? If so, describe the dependence and how it changed to impact revenues. - How did operating expenses and loan and lease loss provisions contribute to the bank's problems? - Resolution = What was the legal resolution of the failure? What was the role of the FDIC and other regulators? - Did another bank or banks acquire the "good" assets and liabilities of the failed bank? If so. what banks? -Was fraud a contributor to the failure? If so, describe. Balance Sheet - Were unhealthy asset and/or liability concentrations part of the bank's problem? If so, describe the nature of the concentration, how it emerged, and what caused it to become unhealthy. - Was the bank adequately capitalized compared to peer institutions? - Did the bank have an adequate allowance for loan losses? o. Income Statement - Was unhealthy dependence on certain revenue sources part of the bank's problem? If so, describe the dependence and how it changed to impact revenues. - How did operating expenses and loan and lease loss provisions contribute to the bank's problems? Resolution - What was the legal resolution of the failure? What was the role of the FDIC and other regulators? - Did another bank or banks acquire the "good" assets and liabilities of the failed bank? If so, what banks? - Did depositors lose money