|
XTREME RISK GAMES (XRG)
|
Credit Risk Scenarios |
|
 |
A bank faces counterparty credit default with a major derivatives dealer that holds over 35% of all global derivative contracts.
As a reporting issuer holding derivatives contracts, the bank is suddenly exposed to over $1bn in credit losses. It has a weak Sarbanes-Oxley (SOX) internal controls infrastructure,
and is immediately thrown into complying with
SOX S. 906 (Certification).
|
| |
 |
Large-scale non-performing loans, a serious misallocation of capital, credit concentrations,
high leverage, poor liquidity and the downgrade of major guarantors, cause regulatory agencies and the Government to intervene to prop up the entire banking system.
|
|
|
|
