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Discussion
Off-balance sheet risk is discussed. Wells Fargo & Company's most recent 10K report. Read through the section titled "Guarantees Pledged Assets and Collateral, and Other Commitments" to get an idea of some of the off-balance sheet items that exist for this bank.
Comment on the concept of off-balance sheet risk and its treatment in three to four paragraphs. Feel free to support your post with an article discussing off-balance sheet risk, or by addressing one of the contingent liabilities reported in the notes to the Wells Fargo & Company statements.
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In this assignment, the concept of off-balance sheet items was explained in relation to given financial figures in the assignment. Its importance was also stated in the assignment file and relevant figures in the financials were indicated for a better understanding of the concept.
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