Oldhat Financial started its first day of operations with $10 million in capital. A total of $135 million in chequable deposits is received. The bank makes a $25 million commercial loan and another $40 million in mortgages with the following terms: 200 standard 30-year, fixed-rate mortgages with a nominal annual rate of 5.25%, each for $200,000. Assume that desired reserves are 8%.

The bank's balance sheet is shown below:

Assets			Liabilities
Desired reserves	$11	million	Chequable deposits	$135	million
Excess reserves	$69	million	Bank capital	$10	million
Loans	$65	million

Early the next day the bank invests $30 million of its excess reserves in commercial loans. Later that day, terrible news hits the mortgage markets, and mortgage rates jump to 13%, implying a present value of Olfhat's current mortgage holdings of $99,838 per mortgage. Bank regulators force Oldhat to sell its mortgages to recognize the fair market value.

What does Oldhat's balance sheet look like?

Fill in the blanks in the actual balance sheet as it would look after the sale: (Round your responses to the nearest whole number. Use a minus sign to enter negative numbers.)

Assets			Liabilities
Desired reserves	$enter your response here	million	Chequable deposits	$enter your response here	million
Excess reserves	$enter your response here	million	Bank capital	$enter your response here	million
Loans	$enter your response here	million

How do these events affect its capital position?

The bank is now

Option 1: In a dire capital position

Option 2: Well capitalized