Shadow Banking, Version \#1 (Securitization with REPO Finance) In the Shadow Banking Version \#1, A. liquidity risk stays with SPV because it issued bonds to the market. B. Shadow banking with Repo Finance violates the regulations on bank capital. C. when the haircut ratio increases, the investment bank cannot cover its funding shortfall by selling their assets with discounts. D. if bonds in the BBB tranche default, the losses will not affect the capital of the traditional bank. Shadow Banking, Version \#1 (Securitization with REPO Finance) In the Shadow Banking Version \#1, A. liquidity risk stays with SPV because it issued bonds to the market. B. Shadow banking with Repo Finance violates the regulations on bank capital. C. when the haircut ratio increases, the investment bank cannot cover its funding shortfall by selling their assets with discounts. D. if bonds in the BBB tranche default, the losses will not affect the capital of the traditional bank