Inspectors General: Mandated Studies to Review Costly Bank and Thrift Failures
GGD-97-4
Published: Nov 07, 1996. Publicly Released: Nov 07, 1996.
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Highlights
Pursuant to a legislative requirement, GAO reviewed the compliance of the Inspectors General (IG) offices of the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation (FDIC), and the Department of the Treasury with section 38(k) of the Federal Deposit Insurance Act of 1991, focusing on: (1) the findings of the material loss review (MLR) reports initiated between July 1, 1994, and June 30, 1995; (2) recommendations to improve bank supervisory practices; and (3) the economy and efficiency of the MLR process.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress may wish to consider whether the current MLR requirement is a cost-effective means of achieving improved bank supervision. If it determines that the requirement is not cost-effective, Congress may consider amending the requirement so that the IG have more flexibility in choosing the number and timing of MLR to initiate each year. |
Closed – Not Implemented
|
Congress has not taken action, therefore GAO is closing out this issue. |
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Topics
Auditing proceduresBank examinationBank failuresBank loansBank managementInsured commercial banksInternal controlsLossesReporting requirementsSavings and loan associations