Resolving the Savings and Loan Crisis

T-GGD-89-3: Published: Jan 26, 1989. Publicly Released: Jan 26, 1989.

Additional Materials:

Contact:

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

GAO provided its views on how best to resolve the savings and loan crisis. GAO found that: (1) the Federal Savings and Loan Insurance Corporation's (FSLIC) approach to resolving thrift institution cases depended too heavily on assisted merger agreements that minimized its need for cash and required subsidies for up to 10 years; (2) FSLIC-subsidized institutions competed with healthy, nonassisted depository institutions at a cost advantage; (3) the FSLIC lack of independence has weakened its risk management and insurance function; and (4) to fully resolve the thrift crisis and restore FSLIC reserves, FSLIC needs at least $85 billion more than it currently anticipates receiving over the next 10 years. GAO recommended a changed approach to resolving insolvent thrift institutions, changes to FSLIC risk management strategies, and, if those changes occur, sufficient funding to resolve the crisis, even at the expense of deficit reduction priorities.

Apr 21, 2016

Apr 18, 2016

Apr 12, 2016

Mar 28, 2016

Mar 8, 2016

Feb 16, 2016

Jan 27, 2016

Dec 30, 2015

Nov 3, 2015

Sep 4, 2015

Looking for more? Browse all our products here