Consider a ‘representative’ interest-only borrower with a $ 30-year mortgage with a 5year interest-only period.11 The left-hand side bar in Graph 6 shows the approximate interest payments (of 5 per cent) that such a borrower makes during the interest-only period.
These conflicts could make the attainment of reasonable and fair solutions extremely difficult. These conflicts could be particularly significant if the relative sizes of the international bank and its subsidiaries are substantially different.