Financial Audit:

Federal Savings and Loan Insurance Corporation's 1988 and 1987 Financial Statements

AFMD-90-34: Published: Oct 31, 1989. Publicly Released: Oct 31, 1989.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO reviewed the Federal Savings and Loan Insurance Corporation's (FSLIC): (1) 1987 and 1988 financial statements; and (2) internal accounting controls system and compliance with applicable laws and regulations.

GAO found that: (1) during 1988, FSLIC incurred a $66 billion net loss, increasing its total deficit to $75 billion; (2) FSLIC reported a $43.6-billion loss allowance for 578 troubled but operating institutions; (3) FSLIC estimated that the present-value cost for merged or sold institutions during 1988 was $33 billion; (4) because of various financial uncertainties, actual resolution costs may differ from FSLIC cost estimates; (5) the Financial Institutions Reform, Recovery, and Enforcement Act dissolved FSLIC, transferred its assets to the newly formed FSLIC Resolution Fund and created the Resolution Trust Corporation to resolve troubled thrifts; (6) $305.9 billion will be needed over the next 33 years for total FSLIC resolution costs and debts, although the administration estimated the cost at $257.2 billion; (7) except as noted, the financial statements presented fairly the FSLIC financial position for 1987 and 1988; and (8) FSLIC complied with laws and regulations that could have materially affected its financial position.

Jul 18, 2018

Jul 17, 2018

Jul 16, 2018

Jun 28, 2018

May 31, 2018

May 24, 2018

May 10, 2018

Apr 17, 2018

Apr 5, 2018

Looking for more? Browse all our products here