As the 2008-2009 financial crisis unfolded,one major U.S.bank had a leverage ratio of 54.In Canada regulators put a ceiling on bank leverage ratios of 20.Compare the change in asset values that would push the capital in the U.S.bank to zero,compared with the change required to eliminate capital in a Canadian bank at the ceiling leverage ratio.What is the implication of the differences in maximum leverage ratios for the stability of the banking system?

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The Answer of As the 2008-2009 financial crisis unfolded,one major U.S.bank had a leverage ratio of 54.In Canada regulators put a ceiling on bank leverage ratios of 20.Compare the change in asset values that would push the capital in the U.S.bank to zero,compared with the change required to eliminate capital in a Canadian bank at the ceiling leverage ratio.What is the implication of the differences in maximum leverage ratios for the stability of the banking system?

As the 2008-2009 Financial Crisis Unfolded,one Major U