Failed Financial Institutions:
Reasons, Costs, Remedies, and Unresolved Issues
T-AFMD-89-1: Published: Jan 13, 1989. Publicly Released: Jan 13, 1989.
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GAO discussed: (1) characteristics and management practices of failed financial institutions; (2) the Federal Home Loan Bank Board's (FHLBB) recent resolution actions; and (3) actions to prevent the crisis from recurring. GAO found that: (1) in 1987, 203 commercial banks closed at an estimated net cost of $3 billion and, in 1988, the number increased to 221; (2) in 1988, the Federal Savings and Loan Insurance Corporation (FSLIC) acted on 222 problem institutions at a cost of $37 billion and left 350 insolvent thrifts still operating; (3) based on a $27-billion resource estimate to pay for insurance losses, FSLIC would need an additional $50 billion to pay for insurance losses through 1998; (4) many thrifts failed because of internal control weaknesses, over-reliance on volatile funding sources, poor loan administration, appraisal deficiencies, and insider fraud and abuse; (5) FHLBB budget constraints imposed staffing and pay limits and forced it to handle only critical situations and turn examinations over to district banks; (6) FHLBB was prevented from liquidating many insolvent thrifts due to the FSLIC financial condition and began to rely on finding merger partners for troubled thrifts; (7) FHLBB had uncertain regulatory control over state-chartered thrifts; and (8) the dual roles of FHLBB and district banks hampered regulation. GAO believes that Congress needs to consider: (1) containing and resolving the immediate FSLIC financial crisis; and (2) establishing an independent FSLIC to insure, regulate, and supervise the thrift industry.
Dec 15, 2020
The Nation's Fiscal Health:
Information on the Spending and Revenue Implications of Potential Debt TargetsGAO-21-211: Published: Dec 15, 2020. Publicly Released: Dec 15, 2020.
Oct 7, 2020
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The Nation's Fiscal Health:
A Long-Term Plan Is Needed for Fiscal SustainabilityGAO-21-161T: Published: Oct 7, 2020. Publicly Released: Oct 7, 2020.
Sep 23, 2020
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The Nation's Fiscal Health:
Effective Use of Fiscal Rules and TargetsGAO-20-561: Published: Sep 23, 2020. Publicly Released: Sep 23, 2020.
Jan 23, 2020
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Federal Trust Funds and Other Dedicated Funds:
Fiscal Sustainability Is a Growing Concern for Some Key FundsGAO-20-156: Published: Jan 16, 2020. Publicly Released: Jan 23, 2020.
Dec 19, 2019
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State and Local Governments' Fiscal Outlook:
2019 UpdateGAO-20-269SP: Published: Dec 19, 2019. Publicly Released: Dec 19, 2019.
Nov 14, 2019
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Certificated Expenditures:
Executive Office of the President FY 2018 Certificated Expenditures Were Spent for Authorized PurposesGAO-20-139R: Published: Nov 14, 2019. Publicly Released: Nov 14, 2019.
Oct 16, 2019
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Civilian Personnel:
Additional Guidance and Consistent Data Reporting Could Help Improve the Marine Corps' Budget ManagementGAO-20-148: Published: Oct 16, 2019. Publicly Released: Oct 16, 2019.
Jun 26, 2019
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The Nation's Fiscal Health:
Actions Needed to Achieve Long-Term Fiscal SustainabilityGAO-19-611T: Published: Jun 26, 2019. Publicly Released: Jun 26, 2019.
Apr 10, 2019
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The Nation's Fiscal Health:
Action Is Needed to Address the Federal Government's Fiscal FutureGAO-19-314SP: Published: Apr 10, 2019. Publicly Released: Apr 10, 2019.
Mar 27, 2019
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Fiscal Exposures:
Federal Insurance and Other Activities That Transfer Risk or Losses to the GovernmentGAO-19-353: Published: Mar 27, 2019. Publicly Released: Mar 27, 2019.
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