Resolving the Savings and Loan Crisis
T-GGD-89-4: Published: Feb 2, 1989. Publicly Released: Feb 2, 1989.
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GAO provided its view on how to resolve the savings and loan crisis. GAO found that, to protect the integrity of the deposit insurance system: (1) the Federal Savings and Loan Insurance Corporation (FSLIC) should be made independent of the Federal Home Loan Bank Board (FHLBB), with a separate board of directors to oversee two separate insurance funds for healthy and insolvent institutions; (2) the Federal Deposit Insurance Corporation (FDIC) and FSLIC need flexibility to adjust premiums to reflect actual or anticipated losses; and (3) FDIC and FSLIC should be given more authority to place stringent controls on improperly operated and undercapitalized institutions. GAO also found that, to effectively resolve the crisis, Congress should: (1) provide sufficient funds to finance case resolutions; (2) create a control board to ensure adequate controls over spending and protect taxpayers' interest; and (3) provide FSLIC the flexibility to undertake short-term liquidity borrowing to finance any deposit outflows that might occur. GAO also noted that: (1) the FSLIC approach to resolve case loads depended too heavily on assistance agreements; (2) FSLIC needs the assistance of state and federal regulators and insurance officials to efficiently and effectively assess the quality of thrift institutions, and timely resolve the case loads at the lowest cost to the government; and (3) to help Congress properly regulate savings and loan institutions in the future, qualified thrifts should be allowed to choose whether to remain in a reorganized FSLIC or switch to FDIC.
Dec 16, 2020
Financial Stability:
Agencies Have Not Found Leveraged Lending to Significantly Threaten Stability but Remain Cautious Amid PandemicGAO-21-167: Published: Dec 16, 2020. Publicly Released: Dec 16, 2020.
Dec 10, 2020
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Federal Reserve Lending Programs:
Use of CARES Act-Supported Programs Has Been Limited and Flow of Credit Has Generally ImprovedGAO-21-180: Published: Dec 10, 2020. Publicly Released: Dec 10, 2020. -
Financial Assistance:
Lessons Learned from CARES Act Loan Program for Aviation and Other Eligible BusinessesGAO-21-198: Published: Dec 10, 2020. Publicly Released: Dec 10, 2020.
Sep 22, 2020
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Anti-Money Laundering:
Opportunities Exist to Increase Law Enforcement Use of Bank Secrecy Act Reports, and Banks' Costs to Comply with the Act VariedGAO-20-574: Published: Sep 22, 2020. Publicly Released: Sep 22, 2020.
Sep 4, 2020
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Bank Supervision:
FDIC Could Better Address Regulatory Capture RisksGAO-20-519: Published: Sep 4, 2020. Publicly Released: Sep 4, 2020.
Jul 21, 2020
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Financial Company Bankruptcies:
Congress and Regulators Have Updated Resolution Planning RequirementsGAO-20-608R: Published: Jul 21, 2020. Publicly Released: Jul 21, 2020.
Jul 6, 2020
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Public Companies:
Disclosure of Environmental, Social, and Governance Factors and Options to Enhance ThemGAO-20-530: Published: Jul 2, 2020. Publicly Released: Jul 6, 2020.
Apr 30, 2020
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Priority Open Recommendations:
Department of the TreasuryGAO-20-549PR: Published: Apr 23, 2020. Publicly Released: Apr 30, 2020.
Apr 27, 2020
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Priority Open Recommendations:
Board of Governors of the Federal Reserve SystemGAO-20-499PR: Published: Apr 20, 2020. Publicly Released: Apr 27, 2020. -
Priority Open Recommendations:
Federal Deposit Insurance CorporationGAO-20-498PR: Published: Apr 20, 2020. Publicly Released: Apr 27, 2020.
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