Financial Audit:

Federal Savings and Loan Insurance Corporation's 1988 and 1987 Financial Statements

AFMD-90-34: Published: Oct 31, 1989. Publicly Released: Oct 31, 1989.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO reviewed the Federal Savings and Loan Insurance Corporation's (FSLIC): (1) 1987 and 1988 financial statements; and (2) internal accounting controls system and compliance with applicable laws and regulations.

GAO found that: (1) during 1988, FSLIC incurred a $66 billion net loss, increasing its total deficit to $75 billion; (2) FSLIC reported a $43.6-billion loss allowance for 578 troubled but operating institutions; (3) FSLIC estimated that the present-value cost for merged or sold institutions during 1988 was $33 billion; (4) because of various financial uncertainties, actual resolution costs may differ from FSLIC cost estimates; (5) the Financial Institutions Reform, Recovery, and Enforcement Act dissolved FSLIC, transferred its assets to the newly formed FSLIC Resolution Fund and created the Resolution Trust Corporation to resolve troubled thrifts; (6) $305.9 billion will be needed over the next 33 years for total FSLIC resolution costs and debts, although the administration estimated the cost at $257.2 billion; (7) except as noted, the financial statements presented fairly the FSLIC financial position for 1987 and 1988; and (8) FSLIC complied with laws and regulations that could have materially affected its financial position.

Jun 20, 2016

Jun 13, 2016

Jun 6, 2016

May 26, 2016

May 18, 2016

Apr 6, 2016

Mar 30, 2016

Feb 29, 2016

Feb 25, 2016

Feb 11, 2016

Looking for more? Browse all our products here