Hull, Risk Management and Financial Institutions, Chapter 2: Banks is a 21 minute instructional video analyzing the following concepts:
* Major risks faced by a bank.
* Distinguishing between economic capital and regulatory capital.
* How deposit insurance gives rise to a moral hazard problem.
* Investment banking financing arrangements including private placement, public offering, best efforts, firm commitment, and Dutch auction approaches.
* The potential conflicts of interest among commercial banking, securities services, and investment banking divisions of a bank and recommend solutions to the conflict of interest problems.
* The distinctions between the “banking book” and the “trading book” of a bank
* The originate-to-distribute model of a bank and its benefits and drawbacks.