Menu Search Account

LegiStorm

Get LegiStorm App Visit Product Demo Website
» Get LegiStorm App
» Get LegiStorm Pro Free Demo

Government Operations: Issues Involving FHLBB Accountability and Control Policies

  Premium   Download PDF Now (3 pages)
Report Type Reports and Testimonies
Report Date May 20, 1988
Report No. AFMD-88-57
Subject
Summary:

GAO reviewed the Federal Savings and Loan Insurance Corporation's (FSLIC) financial policies.

GAO found that: (1) although FSLIC began a policy of issuing notes in connection with many of its resolution actions, there were few controls over the total amount of notes it could issue or the resultant commitment of federal money; (2) FSLIC has also begun to issue more substantial amounts of long-term yield and other guarantees to acquirers and others involved in restructuring insolvent thrifts with little provision for appropriate controls, public accountability, and public credibility; and (3) some savings and loan associations have entered into highly complex financial instruments and hedging transactions with little guidance as to the risks involved.

« Return to search Government Accountability Office reports