Failed Bank: FDIC Documentation of Crossland Savings, FSB, Decision was Inadequate,

Abstract

This report responds to your respective February 10,1992, and February 6, 1992, letters asking us to examine the Federal Deposit Insurance Corporation's (FDIC) resolution actions regarding the failed CrossLand Savings, FSB, of Brooklyn, NY. We are responding to both requests with this report because your separate requests concerned the same topic. On January 24,1992, the Office of Thrift Supervision (OTS) closed CrossLand and named FDiC receiver for the failed bank. The FDIC Board of Directors decided to delay the final resolution of CrossLand-because it found the bids it had received to be more costly than interim FDIC control-by arranging to operate it under a conservatorship for an interim period and then offer it again to the private sector. You asked if this decision met the requirements of the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA),' which generally requires FDIC to resolve a failed bank in the manner that results in the least cost to the deposit insurance fund. (KAR) p. 2

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Document Details

Document Type
Technical Report
Publication Date
Jul 07, 1992
Accession Number
ADA298996

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