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  • did not discuss the reason why TCE is the most stringent measure of regulatory capital on a bank's balance sheet... as welll as did NOT discuss the history of classic highly leveraged balance sheets as AIG or BAC in 2008, being highly on the "liability" side because.... they lent out a lot of money to people... that is a liability.. they hope to collect money (profit, interest) on those people, (net interest income), but that does not happen if u lend to ppl who cannot pay back

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