Byrne-Hughes+Seminar+Schedule+Assignments+1-10+2010

Byrne-Hughes+Seminar+Schedule+Assignments+1-10+2010 - U. S....

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
U. S. B ANKS IN C RISIS : L ESSONS FROM THE P AST , Q UESTIONS FOR THE F UTURE A SSIGNMENTS 1-10 P ROFESSOR J OSEPH P. H UGHES B YRNE F AMILY S EMINAR F ALL 2010 OFFICE HOURS MON. 10:30 - 11:45, WED. 11:15 - 11:45/ NJ HALL 420 JPHUGHES@RCI.RUTGERS.EDU For each seminar, read the assigned material and, where there is a computer assignment, answer the questions listed under the assignment. The readings can be found on the Sakai website. Bring a hard copy of your answers to class. Do not collaborate in answering the questions. The answers should be your own work. While there are 10 seminars, there will be no class on October 13. Instead, the seminar will run through December 1 rather than November 17. Seminar 1: September 15: The Business of Banking “The Business of Banking and its Regulation,” ch. 5, Meir Kohn, Money, Banking, and Financial Markets , 2nd edition, 1993. Seminar 2: September 22: A Bank That Left a Nasty Mess “Town’s Friendly Bank Left Nasty Mess,” Wall Street Journal , June 16, 2009 Assignment to be submitted at the start of class: Go to the website of the Federal Deposit Insurance Corporation at http://www.fdic.gov . Investigate the financial condition and asset allocation of New Frontier Bank, the town’s friendly bank that left a nasty mess, as the Wall Street Journal put it. Click on the “Industry Analysis” tab, then on “Bank Data & Statistics,” then on “Institution Directory.” Use the Institution Directory to search for the New Frontier Bank of Greeley, Colorado. Click on “Find Institutions.” Remember it failed in June 2009. Thus, ask for Information as of . . . December 31, 2008 in the pull-down menu. In the box labeled Institution Name list a portion of the name, say, “frontier,” and then select “Colorado” in the State box. Ignore the other boxes and click on FIND at the bottom. You should obtain New Frontier Bank. Click on its certificate number, 34881, to obtain the Information Gateway . The pull-down menu, ID Report Selection , has a number of interesting options. For example, select “All Summary Information” and click on Generate Report . You’ll obtain balance sheet and income statement information for December 31, 2008 and December 31, 2007. Check both pull-down menus for these dates to be sure you obtain them in the reports.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 1. How large (total assets) is New Frontier Bank? (Note that dollar amounts are reported in thousands.) 2. Scroll down to the “Performance and Condition Ratios.” Compare the ROA and ROE between 2008 and 2007. 3. Analyze the ratio noncurrent assets (plus real estate owned – foreclosed real estate) to total assets in 2008 and 2007. Do the same for the equity capital to assets ratio. What do these two ratios tell you about the solvency of the New Frontier Bank? Explain. 4. Scroll down to the “Demographic Information.” How many branches (“domestic offices”) did New
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

Byrne-Hughes+Seminar+Schedule+Assignments+1-10+2010 - U. S....

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online