Failed Thrift: Lengthy Government Control of Sunbelt Savings Bank

摘要

The Chairman of the House Committee on Banking, Finance and Urban Affairsexpressed concerns that Sunbelt had operated under an Federal Savings and Loan Insurance Corporation(FSLIC) assistance agreement since August 1988 and yet was-after nearly 3 years of House Committee (HC) and Federal Deposit Insurance Corporation (FDIC) control-put into RTC's conservatorship program. He asked us to explore Federal Home Loan Bank Board (FHLBB) and FSLIC efforts to market Sunbelt; determine its compliance with the assistance agreement; determine whether or not oversight by FHLBB/FSLIC, FDIC, and OTS met their requirements; determine the basis for Office of Thrift Supervision (OTS') met their requirements; conservatorship; and discuss options to resolve Sunbelt in RTC conservatorship; and discuss options and RTC plans to resolve Sunbelt. His specific questions are in appendixes II through V. The Chairman also asked us to address issues related to the cost and benefits of government control of Sunbelt to the extent that available data permitted. To address the Chairman's concerns, we reviewed FHLBB documents, including board of directors' minutes and data pertaining to the 1988 assistance agreements; reviewed the FSLIC-Sunbelt assistance agreement and forbearance letter and FSLIC and FDIC documents related to their oversight of the assistance agreement; reviewed OTS examination reports and pertinent documents; reviewed Sunbelt financial data, audit reports, manuals, and other documents; reviewed FSLIC and, where available, RTC management and resolution plans for Sunbelt and related board minutes; interviewed current and former officials of FHLBB, FSLIC, the FHLBank of Dallas, FDIC, OTS, and Sunbelt; and interviewed RTC managing agents and officials with respect to Sunbelt's condition and RTC's management of Sunbelt.