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1993 Bank Resolutions: FDIC Further Improved Its Resolution Process

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Report Type Reports and Testimonies
Report Date June 9, 1995
Report No. GGD-95-118
Subject
Summary:

This report examines whether the Federal Deposit Insurance Corporation (FDIC) complied with the requirement that it calculate and document its evaluation of the costs of alternatives for resolving a troubled depository institution and that it choose the least costly resolution alternative. From its review of 10 of the 42 banks that failed and were resolved during 1993, GAO found that FDIC had continued to improve its resolution process, particularly the documentation of its marketing strategies and the bases for its resolution decisions. GAO also found that FDIC had generally conformed to its resolution process and had consistently made decisions based on its determination of the least costly resolution alternative available.

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