The Federal Savings and Loan Insurance Corporation--Current Financial Condition and Outlook

T-AFMD-88-12: Published: May 19, 1988. Publicly Released: May 19, 1988.

Additional Materials:

Contact:

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

GAO discussed the Federal Savings and Loan Insurance Corporation's (FSLIC) financial condition. GAO noted that, during 1987: (1) one-third of the 3,147 FSLIC-insured savings and loan institutions experienced $13.4 billion in losses due to diversification into riskier activities, the high cost of funds, and insufficient management; (2) 500 insolvent institutions and 435 barely solvent institutions continued to operate; (3) FSLIC had an operating loss of $8.6 billion, resulting in a $13.7-billion deficit; (4) FSLIC assumed responsibility for over 200 insolvent institutions with a total liability exceeding $17 billion; and (5) FSLIC expected to recover 39 percent of its claims of $2.8 billion against the closed institutions' assets. GAO believes that FSLIC based its optimistic belief that it had sufficient resources to effectively deal with industry problems on the incorrect assumptions that: (1) it could resolve troubled institutions' problems with mergers; (2) future resolutions would cost less and occur more rapidly; and (3) certain interest-rate growth and future industry conditions would be more favorable.

Sep 29, 2017

Sep 12, 2017

Sep 7, 2017

Apr 19, 2017

Mar 29, 2017

Feb 24, 2017

Dec 29, 2016

Dec 15, 2016

Nov 15, 2016

Looking for more? Browse all our products here