RE:How many will pull out money today?17b in mortgages.
margins of 2.5-3.5% with high interest saving accounts.
10% at one billion= 100m in cost -35M in interest gained is a net loss of 65M. Add the non refundable 100m for the LOC and you have a loss of 165m on 1 billion of LOC and 285M if the entire LOC is used while they restructure over the next few months or are sold.
Its not good.... but its workable for the forseeable future without net losses on the year. Remember 2B is just over 10% of their mortgage portfolio. So though it is a big loss.... they still have 86% of their mortgages MAKING MONEY to cover