In addition to the bank balance sheet information shown below, the bank also has an Allowance for Loan Losses (ALL) of $10. The preferred stock shown is qualifying noncummulative perpetual preferred stock. Calculate the two required Basel I ratios and also the leverage ratio to answer the following: (1) Does this bank currently comply with Basel I capital requirements (why or why not?)? (2) Under U.S. PCA standards, what capitalization class or level does this bank currently possess and why? (Show sufficient detail in order to receive credit)

Assets	Amount		Liabilities and Equity	Amount
Cash	80		Non-interest deposits	150
Securities			NOW checking	150
U.S. Treasuries	200		MMDA	300
Fannie Mae (FNMA) MBS	70		CDs	240
Loans (net)			Fed Funds purchased	100
Home mortgage loans	150		Subordinated debt capital	5
Commercial loans	500		Preferred stock, perpetual	5
Fed funds sold	0		Common equity	40
	$1,000			$1,000