首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
The stability of the U.S. banking system is maintained by means of supervision and regulation, inspections, deposit insurance, a
The stability of the U.S. banking system is maintained by means of supervision and regulation, inspections, deposit insurance, a
admin
2017-07-31
61
问题
The stability of the U.S. banking system is maintained by means of supervision and regulation, inspections, deposit insurance, and loans to troubled banks. For over 50 years, these precautions have prevented banking panics. However, there have been some close calls. The collapse of Continental Illinois Bank & Trusted Company of Chicago in 1984 did not bring down the banking system, but it certainly rattled some windows.
In the late 1970s, Continental soared to a leadership position among Midwestern banks. Parts of its growth strategy were risky, however. It made many loans in the energy field, including $1 billion that it took over from Penn Square Bank of Oklahoma City. To obtain the funds it needed to make these loans, Continental relied heavily on short term borrowing from other banks and large 30-day certificates of deposit—"hot money", in banking jargon. At least one Continental officer saw danger signs and wrote a warning memo to her superiors, but the memo went unheeded. Although the Comptroller of the Currency inspected Continental on a regular basis, it failed to see how serious its problems were going to be.
Penn Square Bank was closed by regulators in July 1982. When energy prices began to slip, most of the $1 billion in loans that Continental had taken over from the smaller banks turned out to be bad. Other loans to troubled companies such Chrysler, International Harvester, and Braniff looked questionable. Seeing these problem, "hot money" owners began to pull their funds out of Continental.
By the spring of 1984, a run on Continental had begun. In May, the bank had to borrow $3.5 billion from the Fed to replace overnight funds it had lost. But this was not enough. To try to stem the outflow of deposits from Continental, the FDIC agreed to guarantee not just the first $100,000 of each depositor’s money but all of it. Nevertheless, the run continued.
Federal regulators tried hard to find a sound bank that could take over Continental — a common way of rescuing failing banks. But Continental was just too big for anyone to buy. By July, all hope of a private sector rescue was dashed. Regulators faced a stark choice: Let Continental collapse, or take it over themselves.
Letting the bank fail seemed too risky. It was estimated that more than 100 other banks had placed enough funds in Continental to put them at risk if Continental failed. Thus, on a rainy Thursday at the end of July, the FDIC in effect nationalized Continental Illinois at a cost of $4.5 billion. This kept the bank’s doors open and prevented a chain reaction. However, in all but a technical sense, Continental had become the biggest bank failure in U.S. history.
In the spring of 1984, Continental experienced______.
选项
A、a fast growth period
B、a stability period
C、a run
D、an oil price decrease
答案
C
解析
本题的依据是文章第四段的第一句话By the spring of 1984,a run on Continental had begun,从中可知,C项为正确答案。
转载请注明原文地址:https://www.kaotiyun.com/show/2lFO777K
0
考博英语
相关试题推荐
Scientistsnowtendtoagreethatthenoiselevelforpotentialhearinglossbeginsatabout70decibels.Someofthemarevery
Thepolicehaveaskedforthe____ofthepublicintracingthewhereaboutsofthemissingchild.
NowwhenIhadmasteredthelanguageofthiswater,andhadcometoknoweverytriflingfeaturesthatborderedthegreatrivera
Today,cigarettesmokingisawidespreadhabit.About43percentoftheadultmenand31percentoftheadultwomenintheUSsm
Althoughmostdreamsapparentlyhappen______,dreamactivitymaybeprovokedbyexternalinfluences.
Mostparentsprizethediversitywithintheirchildren’spublicschools.Theyknowthatlearningtocooperateandexcelinadiv
Ofallthecomponentsofagoodnight’ssleep,dreamsseemtobeleastwithinourcontrol.Indreams,awindowopensintoaworld
Everybodylovesafatpayrise.Yetpleasureatyourowncanvanishifyoulearnthatacolleaguehasbeengivenabiggerone.I
Ifeverybodytakesanactivepartandsayswhathethinks,thediscussionwillsurelybe
Tightlippedeldersusedtosay,"It’snotwhatyouwantinthisworld,butwhatyouget."Psychologyteachesthatyoudoge
随机试题
病毒性肺炎最具有诊断价值特点的是
寒性病证出现寒象,用温热方药来治疗,属于
省、自治区、直辖市、副省级城市、计划单列市的质检院(所)以及省级纤维检验机构实施验收许可工作,交由国家认监委负责管理,上述机构首次申请、复查换证、变更(含扩项)等事项均由国家认监委认定部门负责实施()。
一正方形截面杆,其横截面边长d与杆长ι成比例增加,则它的长细比的变化为()。
一般资料:求助者,男性,31岁,大学毕业,自己开公司。案例介绍:求助者大学毕业以后在一家大公司工作,求助者的能力比较强,工作兢兢业业,因此很受上司的赏识,去年公司决定提拔求助者为公司总经理,但是求助者想自己创业,因此放弃了公司的升职机会,辞去了公
《中华人民共和国教师法》规定教师有以下情形之一的,由所在学校、其他教育机构或者教育行政部门给予行政处分或者解雇。不符合规定情形的是()。
Economics,asweknowit,isthesocialscienceconcernedwiththeproduction,distribution,exchange,andconsumptionofgoods
如果要设置整个报表的格式,应单击相应的______。
Thehousewasquietat5amandTim’smotherwasasleep.Onlythesoundofthebigfreezerbrokethequiet.He’ddreamtofthec
"Hisbrotheristeacher"______Hehasabrother".
最新回复
(
0
)