A.The original successful business model had not stress tested sufficiently for the incidence of Low Probability, High Impact incidents

B.The role of the UK government and the possible underwriting of risks by tax-payers, and the general question of Moral Hazard

C.The reform of the Deposit Protection Scheme because of its internal inconsistencies

D.It emphasised the importance of effective governance arrangements within financial firms

A.sold them derivative products without properly advising them of the relevant risks

B.was involved in accounting fraud

C.hid profits

D.did not honour its contractual obligations to pay

A.Ignore local rules and regulations

B.Modify the interpretation of local rules and regulations to meet the situation

C.Respect local rules and regulations

D.Seek advice from a qualified party, being mindful of legal and confidentiality requirements

A.made it difficult for TFMI to determine whether risk had actually been transferred so they had to take out additional catastrophe insurance cover

B.made it difficult for TFMI to determine whether risk had actually been transferred and whether it had sufficient catastrophe insurance cover

C.made it straightforward for TFMI to determine when the risk had been transferred and to take out additional catastrophe insurance cover

D.made it straightforward for TFMI to determine whether risk had actually been transferred and they decided not to take out more catastrophe insurance cover

A.Stress Testing was elaborate, complex and conducted on their entire portfolio. It included the assumptions of a major breakdown in historical correlations

B.Stress Testing was not necessary because their trades were hedged

C.Stress Testing was not conducted

D.Stress Testing looked at the 12 biggest deals with each of their top 20 counterparties