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Questions and Answers
What was the urgent call about that Chris Kittal received from a contact at Charles Bank International (CBI)?
What was the urgent call about that Chris Kittal received from a contact at Charles Bank International (CBI)?
- A corporate client of CBI needed additional funding. (correct)
- CEU was in the middle of an industry shakeout.
- CBI had lucrative transactions with a telecommunications company.
- CBI was facing a financial crisis.
What was the reason CBI was unable to extend the additional loan to CEU?
What was the reason CBI was unable to extend the additional loan to CEU?
- It would put CBI over its credit exposure limit with respect to a single client. (correct)
- CBI was facing a financial crisis.
- CEU was not a loyal banking customer.
- CEU was not in need of additional funding.
What did CBI's management call on Chris Kittal to explore?
What did CBI's management call on Chris Kittal to explore?
- Restructuring CEU's existing loans.
- Acquiring First American Bank's credit derivatives unit.
- Finding a new corporate client to replace CEU.
- Using credit derivatives to their advantage. (correct)
What was the reason behind CEU's need for $50 million in funding?
What was the reason behind CEU's need for $50 million in funding?
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Why was CBI depending on their relationship with CEU for the additional funding?
Why was CBI depending on their relationship with CEU for the additional funding?
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Study Notes
Urgent Call and CBI's Decision
- Chris Kittal received an urgent call from a contact at Charles Bank International (CBI).
- CBI was unable to extend the additional loan to CEU due to a recent change in their lending policy.
- CBI's management asked Chris Kittal to explore other options for CEU's funding needs.
CEU's Funding Needs and CBI's Dependence
- CEU needed $50 million in funding to complete a new campus building project.
- CBI was depending on their relationship with CEU for the additional funding because they valued the institution's reputation and its impact on the community.
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