Bank Insurance Fund's 1990 and 1989 Financial Statements
AFMD-92-24: Published: Nov 12, 1991. Publicly Released: Nov 12, 1991.
- Full Report:
GAO examined the Federal Deposit Insurance Corporation's (FDIC) Bank Insurance Fund's financial statements for the years ended December 31, 1990 and 1989.
GAO found that: (1) the Fund's 1990 financial statements show that the significant losses it incurred in resolving problem institutions have depleted its equity; (2) a $4-billion balance at the end of 1990 represented just 0.15 percent of insured deposits; (3) given future bank failures, the Fund will likely be insolvent by December 31, 1991; (4) the Fund's financial statements fairly presented the Fund's financial position, in accordance with generally accepted accounting principles; (5) FDIC complied, in all material respects, with those laws and regulations that could have a material effect on the Fund's financial statements; (6) the Fund's actual resolution costs could be higher than estimated, due to significant uncertainties beyond FDIC control which affect cost estimates for resolving institutions; and (7) FDIC agreed to reclassify escrowed funds from failed bank resolutions as liabilities incured from bank assistance and failures.