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.

Jul 19, 2018

Jul 18, 2018

Jun 26, 2018

Mar 22, 2018

Mar 16, 2018

Mar 15, 2018

Feb 27, 2018

Feb 26, 2018

Looking for more? Browse all our products here