Resolving Failed Savings and Loan Institutions:

Estimated Costs and Additional Funding Needs

T-AFMD-90-32: Published: Sep 19, 1990. Publicly Released: Sep 19, 1990.

Additional Materials:

Contact:

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

GAO discussed: (1) the Resolution Trust Corporation's (RTC) funding needs; and (2) RTC, its Oversight Board's, and the Congressional Budget Office's (CBO) cost estimates for resolving failed and troubled savings institutions. GAO noted that: (1) the Office of Thrift Supervision developed a rating system to measure the relative health of individual institution's financial conditions, compliance with laws and regulations, and overall operating soundness; (2) RTC, the Board, and CBO used similar methodologies to calculate their resolution cost estimates; (3) RTC will need at least another $50 billion in resolution funding to orderly and expeditiously close failed thrifts, but without additional funding, RTC will be unable to continue resolving institutions and the resolution cost will continue to increase; (4) it estimated the total resolution cost to range between $335 billion to $370 billion, excluding general Treasury financing costs; (5) due to legislative changes concerning RTC funding sources, the obligations-limit formula allowed RTC an additional $18.8 billion in borrowing authority; and (6) RTC needs Congress to raise the cap on the maximum obligations limit to at least $100 billion so that it can plan and budget for longer than the immediate future.

Jul 25, 2016

Jul 5, 2016

May 6, 2016

Apr 21, 2016

Apr 18, 2016

Apr 12, 2016

Mar 28, 2016

Mar 8, 2016

Feb 16, 2016

Jan 27, 2016

Looking for more? Browse all our products here