Resolving the Savings and Loan Crisis

T-GGD-89-7: Published: Feb 22, 1989. Publicly Released: Feb 22, 1989.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO discussed and made recommendations on how best to resolve the savings and loan crisis. GAO found that: (1) the Federal Home Loan Bank Board's (FHLBB) emphasis on industry promotion and the Federal Savings and Loan Insurance Corporation's (FSLIC) lack of independence weakened the FSLIC risk management and insurance function; (2) in order to resolve the crisis, FSLIC needs at least $85 billion more than it anticipates receiving over the next 10 years; and (3) the FHLBB approach to resolving insolvent thrifts depends too heavily on complex assistance agreements that minimize its need for cash and require subsidies for up to 10 years. GAO believes that the full costs of resolving insolvent thrifts should be paid from adequately funded deposit insurance funds, rather than through special tax provisions. GAO made several recommendations regarding deposit insurance system restructuring, funding, and changes to insolvent thrift resolution.

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