to aid the deteriorating FSLIC
. CEBA provided $10,875 billion towards recapitalization of the fund and created a forbearance program for certain 'well-managed' thrifts." It also revised selected accounting standards and appraisal standards for real estate loans, and slightly increased capital standards for thrifts.
During the S&L crisis, FSLIC
liquidated the failed institutions' assets and distributed the proceeds to creditors.
So convinced were some S&L executives that their industry was invincible, that as late as December 1988 the head of the National Council of Savings Institutions was predicting that--in spite of huge losses to FSLIC
and developing news stories about the industry's financial troubles and corruption--the recent increase in deposit insurance rates levied on S&Ls would be successfully repealed.
refused to examine whether an arbitrary and capricious standard is
insurance funds in the FSLIC
. In 1989 Congress enacted the Financial
The tightened regulations exposed bad investments, and S&Ls begin to fail; In 1986, 54 thrifts were rendered insolvent, and the FSLIC
insurance fund became insolvent.
Savings and loan associations originally obtained federal deposit insurance from the Federal Savings and Loan Insurance Corporation (FSLIC
), which was established by the National Housing Act of 1934.
Some of us old-timers remember the FSLIC
takeover of FirstSouth in Pine Bluff as the beginning of a wave of S&L failures, and we worry that ANB could be the canary in the coal mine.
The Federal Savings and Loan Insurance Corporation (FSLIC
) was established by the National Housing Act of 1934 and placed under the supervision of the Federal Home Loan Bank Board.
At the time the S&Ls were deregulated, deposits in S&Ls were insured by the Federal Savings and Loan Insurance Corporation (FSLIC
) up to $100,000.
let alone established, what processes the FSLIC
(1) Clearly, regulatory design and agency problems have been important contributors to financial crises in the U.S., such as the collapse of the Ohio state deposit insurance fund, and more recently the collapse of the Rhode Island credit union insurance funds, not to mention the problems that contributed to the collapse of the FSLIC
(Federal Savings and Loan Insurance Corporation).