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Failed Thrift: Lengthy Government Control of Sunbelt Savings Bank

GGD-92-82 Published: Apr 28, 1992. Publicly Released: Apr 28, 1992.
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Highlights

 

Pursuant to a congressional request, GAO reviewed: (1) why a federal savings bank has remained under government control since August 1988; and (2) the costs and benefits of this control.

 

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Resolution Trust Corporation The Chief Executive Officer, RTC, should instruct his staff to compare the RTC total resolution cost estimate with the estimated cost of an earlier liquidation to calculate whether there was a financial cost of the delay in resolving Sunbelt and, if so, the extent of such cost.
Closed – Not Implemented
As of August 20, 1993, RTC has concluded that it cannot determine with any certainty the financial impact of the delay in resolving Sunbelt. Thus, it will not be implementing the recommendation.

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Topics

Bank failuresBank managementCost analysisCost effectiveness analysisInsured commercial banksProperty disposalSavings and loan associationsLitigationFederal deposit insuranceFailed thrifts