In recent years, large dealer banks financed significant fractions of their assets using short-term, often overnight repurchase (repo) agreements in which creditors held bank securities as collateral against default losses. The table below shows the quarter-end financing of four broker-dealer banks. All values are in USD billions:
In the event that repo creditors become nervous about a bank’s solvency, which bank is least vulnerable to a liquidity crisis?
ABank A
BBank B
CBank C
DBank D
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