1. The FDIC is extremely concerned with risk management in banks. High risk banks more likey to fail and cost the FDIC money. The FDIC regularly examines banks and rates them using a system called CAMELS. Go to http://www.frbsf.org/econrsrch/wklyltr/wklyltr99/el99 19.html. what does the acroym CAMELS stand for? Go to part 11.7.1 on the website, and review the discussion of market risk. Summarize the FDIC interest rate risk measurement methods.
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