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Failed Bank: FDIC Documentation of CrossLand Savings, FSB, Decision Was Inadequate

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Report Type Reports and Testimonies
Report Date July 7, 1992
Report No. GGD-92-92
Subject
Summary:

In January 1992, the Office of Thrift Supervision closed CrossLand Savings, FSB, in Brooklyn, New York, and named the Federal Deposit Insurance Corporation (FDIC) receiver for the failed bank. The FDIC Board of Directors decided to delay final resolution of CrossLand--because it found the bids it had received to be more costly than interim FDIC control--by arranging to run it under a conservatorship for an interim period and then offer it again to the private sector. This report examines FDIC's resolution actions concerning CrossLand and discusses whether its decision to delay final resolution met the requirement that FDIC resolve a failed bank in a way that results in the least cost to the insurance fund.

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