Question 1 The book discusses the valuation of a commercial bank. Some of the factors that are discussed are the Required Rate of Retum, the Risk Free Rate, and the Risk Premium. Who determines the
Required Rate of Retum, the Risk Free rate and the Risk Premium? Is this one of the things determined by the Federal Reserve? How would I look them up?
Question 2 The Savings and Loan crisis of the late 1980s is discussed in the book — a bit. The Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) and the Gam-St. Germain
Depository Institutions Act of 1982 (GSGDIA) contributed to the crisis. How? The Financial Institutions Reform, Recovery, & Enforcement Act of 1989 (FIRREA) was passed in response to the crisis.
What effect did FIRREA have on the prior regulations? Are there any similarities between the S&L crisis and the latest financial crisis?

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