IndyMac reported that during April 2008, Moody's and Standard & Poor's downgraded the ratings on a significant number of Mortgage-backed security (MBS) bonds including $160 million of those issued by IndyMac and which the bank retained in its MBS portfolio. IndyMac concluded that these downgrades would have negatively impacted the Company's risk-based capital ratio as of June 30, 2008. Had these lowered ratings been in effect at March 31, 2008, IndyMac concluded that the bank's capital ratio would have been 9.27% total risk-based. IndyMac warned that if its regulators found its capital position to have fallen below "well capitalized" (minimum 10% risk-based capital ratio) to "adequately capitalized" (8–10% risk-based capital ratio) the bank might no longer be able to use brokered deposits as a source of funds. COUNT 5
QSN1 When did Moody's and Standard & Poor downgrade a significant number of IndyMac's MBS bonds? ANS1 April 2008 QSN2 If IndyMac's downgraded MBS bond ratings had been in effect at March 31, 2008, what would the bank's capital ratio have been? ANS2 9.27% QSN3 What was the value of IndyMac's MBS bonds retained in its MBS portfolio that were downgraded in April 2008? ANS3 $160 million QSN4 What was one of the agencies that downgraded a significant number of IndyMac's MBS bonds in April 2008? ANS4 Moody's QSN5 What is a well capitalized ratio? ANS5 minimum 10% risk-based