Failed Thrift: Lengthy Government Control of Sunbelt Savings Bank.
Abstract
The Chairman of the House Committee on Banking, Finance and Urban Affairs expressed concerns that Sunbelt had operated under an FSLIC assistance agreement since August 1988 and yet was-after nearly 3 years of HC and FDIC control-put into RTC's conservatorship program. He asked us to explore FHLBB and FSLIC efforts to market Sunbelt; determine its compliance with the assistance agreement; determine whether or not oversight by FHLBB/FSLIC, FDIC, and OTS met their requirements; determine the basis for OTS' decision to place Sunbelt in RTC conservatorship; and discuss options and RTC plans to resolve Sunbelt. His specific questions are in appendixes II through V. The Chairman also asked us to address issues related to the cost and benefits of government control of Sunbelt to the extent that available data permitted. To address the Chairman's concerns, we reviewed FHLBB documents, including board of directors' minutes and data pertaining to the 1988 assistance agreements; reviewed the FSLIC-Sunbelt assistance agreement and forbearance letter and FSLIC and FDIC documents related to their oversight of the assistance agreement; reviewed OTS examination reports and pertinent documents; reviewed Sunbelt financial data, audit reports, manuals, and other documents; reviewed FSLIC and, where available, RTC management and resolution plans for Sunbelt and related board minutes; interviewed current and former officials of FHLBB, FSLIC, the FHLBank of Dallas, FDIC, OTS, and Sunbelt; and interviewed RTC managing agents and officials with respect to Sunbelt's condition and RTC's management of Sunbelt. p.13 (KAR)
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1992
- Accession Number
- ADA290734
Entities
Organizations
- United States Government Accountability Office