FDIC TE JF– Questions With Definite Solutions
Part 335 Reporting Thresholds Correct Answer - Securities Act of 1942
TA > $1M
and 500 shareholders (750 at initiation; 500 ongoing)
What loan problem is this:
Absence sound lending policies, lack of sound credit judgment, lacking margin
of security, insufficient owner equity Correct Answer - Poor Risk
Selection
Purposes of Capital
PRAP Correct Answer - Promote confidence
Restrict excessive asset growth
Absorb losses
Protect DIF
IT Rating Areas
MADS Correct Answer - Management
Audit
Development and Acquisition
Support & Delivery
Reg O Executive Officers Correct Answer - Cashier
Chairment
VP
Secretary
President
Treasurer
(Or participates in policy making function)
Money Laundering Stages
PLI Correct Answer - Placement
Layering
Integration
,Trust Exam Components
MOECA Correct Answer - Management
Operations/Controls/Audit
Earnings
Compliance
Asset Management
Unsuitable Investment Activities
PAWREG Correct Answer - Pair-offs
Adjusted
When-issued
repositioning repo
extended settlement
gains
shorts
Appraisal Standards
SCUMWADD Correct Answer - State licensed/certified
USPAP
Market Value
Written
Appropriate Deductions/Discounts
Assets w/Embedded Options
examples... Correct Answer - NMDs
Callable Bonds
Structured Notes
Wholesale funds
Derivatives
Mtg Loans
MBS
Specialty Exams
BITGMR Correct Answer - BSA
IT
Trust
Gov't Securities Dealer
Muni Dealers
Registered Transfer Agent
, CRA Factors
CAMEO Correct Answer - Community development
Assess community needs
marketing/credit offered
Evidence of discrimination
Openings/closings of branches
Golden parachute allowed?
4 items Correct Answer - FDIC approves
white knight
consent for 12 months pay severance plan
prudent IAP (no wrongdoing)
Real Estate Lending Policy guidelines
MADUD Correct Answer - Monitoring
Administration
Diversification
Underwriting
Documentation
What loan problem?
No well defined repayment program Correct Answer - Failure to
enforce/establish liquidation terms
Concentrations write up format
IERRS Correct Answer - Identification
Economic & competitive factors
Risk profile
Risk mgmt & control
Summary
When is it OK to meet with Board committee i/o full Board? Correct Answer
- influential to policy
regular meetings
reasonable outside director participation
reports to full Board
Part 335 Reporting Thresholds Correct Answer - Securities Act of 1942
TA > $1M
and 500 shareholders (750 at initiation; 500 ongoing)
What loan problem is this:
Absence sound lending policies, lack of sound credit judgment, lacking margin
of security, insufficient owner equity Correct Answer - Poor Risk
Selection
Purposes of Capital
PRAP Correct Answer - Promote confidence
Restrict excessive asset growth
Absorb losses
Protect DIF
IT Rating Areas
MADS Correct Answer - Management
Audit
Development and Acquisition
Support & Delivery
Reg O Executive Officers Correct Answer - Cashier
Chairment
VP
Secretary
President
Treasurer
(Or participates in policy making function)
Money Laundering Stages
PLI Correct Answer - Placement
Layering
Integration
,Trust Exam Components
MOECA Correct Answer - Management
Operations/Controls/Audit
Earnings
Compliance
Asset Management
Unsuitable Investment Activities
PAWREG Correct Answer - Pair-offs
Adjusted
When-issued
repositioning repo
extended settlement
gains
shorts
Appraisal Standards
SCUMWADD Correct Answer - State licensed/certified
USPAP
Market Value
Written
Appropriate Deductions/Discounts
Assets w/Embedded Options
examples... Correct Answer - NMDs
Callable Bonds
Structured Notes
Wholesale funds
Derivatives
Mtg Loans
MBS
Specialty Exams
BITGMR Correct Answer - BSA
IT
Trust
Gov't Securities Dealer
Muni Dealers
Registered Transfer Agent
, CRA Factors
CAMEO Correct Answer - Community development
Assess community needs
marketing/credit offered
Evidence of discrimination
Openings/closings of branches
Golden parachute allowed?
4 items Correct Answer - FDIC approves
white knight
consent for 12 months pay severance plan
prudent IAP (no wrongdoing)
Real Estate Lending Policy guidelines
MADUD Correct Answer - Monitoring
Administration
Diversification
Underwriting
Documentation
What loan problem?
No well defined repayment program Correct Answer - Failure to
enforce/establish liquidation terms
Concentrations write up format
IERRS Correct Answer - Identification
Economic & competitive factors
Risk profile
Risk mgmt & control
Summary
When is it OK to meet with Board committee i/o full Board? Correct Answer
- influential to policy
regular meetings
reasonable outside director participation
reports to full Board
