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Mary wants to sell some of these subprime loans on the developing secondary market. However, she also wants the bank to retain some in their

Mary wants to sell some of these subprime loans on the developing secondary market. However, she also wants the bank to retain some in their asset portfolio to add income and make the stockholders happy. She wants an evaluation of the associated risks and a recommendation on whether or not to hold or sell. What are the possible gains and losses to the bank after December 2006?

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