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Which one below is true regarding the concept of good bank/bad bank? Bad bank assets are passed on to the institutions correspondent bank that is
Which one below is true regarding the concept of good bank/bad bank? Bad bank assets are passed on to the institutions correspondent bank that is required to accept the assets. The bad bank is a special purpose vehicle (SPV) that is organized to liquidate non-performing loans. The bad bank assets are funded by FDIC insured deposits. Good bank assets are organized into a closed end mutual fund which then sells shares to raise funds for the bad bank
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