Resolving the Thrift Crisis
Abstract
For more than a decade, the number of savings and loans and savings banks in the United States has been declining. The primary cause of this decline has been the financial failure of these thrift institutions. Because the deposits at these thrifts were insured by the Federal Savings and Loan Insurance Corporation, the federal government has borne the responsibility for resolving these thrift failures. In 1989, the Bush Administration proposed, and the Congress passed, legislation designed to deal with the thrift crisis. The initial phase of the cleanup is near completion; its ultimate cost will largely depend on how quickly and efficiently the remaining insolvent thrifts are resolved and their assets are liquidated. At the request of the House Committee on Banking, Finance and Urban Affairs, the Congressional Budget Office (CBO) prepared this study of the cleanup of the thrift crisis. The study examines the underlying causes of the thrift crisis and the progress of the cleanup through the end of 1992, with special attention given to the role of the Resolution Trust Corporation. It also presents several options for improving the cleanup. In keeping with the mandate of the Congressional Budget Office to provide nonpartisan analysis, the study makes no recommendations
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1993
- Accession Number
- ADA266306
Entities
Organizations
- Congressional Budget Office