Resolving the Savings and Loan Crisis

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

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

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 22, 2020

Sep 4, 2020

Jul 21, 2020

Jul 6, 2020

Apr 30, 2020

  • finance icon, source: Comstock

    Priority Open Recommendations:

    Department of the Treasury
    GAO-20-549PR: Published: Apr 23, 2020. Publicly Released: Apr 30, 2020.

Apr 27, 2020

Apr 21, 2020

Apr 20, 2020

Looking for more? Browse all our products here