Final Oversight Hearings on the Savings and Loan Industry in the 100th Congress: Hearing Before the Committee on Banking, Housing, and Urban Affairs, United States Senate, One Hundredth Congress, Second Session ... August 2 and 3, 1988 |
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accounting action activities adjustable rate mortgages agencies assets authority believe billion brokered deposits brokered funds California League Classification Act commercial banks Congress cost deposit insurance system depository institutions employees equity examination and supervision failure FDIC federal deposit insurance Federal Home Loan FHLBB Final Rule financial institutions FSLIC problem GAAP insolvent going Gould Home Loan Bank House Banking Committee increase insolvent institutions insolvent thrifts insurance fund insured institutions interest rate risk interest rates issue JANIS junk bonds League of Savings legislation liabilities Loan Bank Board losses money brokering mortgage net worth operating percent PRATT premium proposed real estate regulatory reserves resolve risk safety and soundness SANDLER savings and loan savings institutions Senator Garn Senator GRAHAM Senator RIEGLE Speech staff Subcommittee supervisory taxpayers Testimony Texas thrift deregulation thrift institutions thrift system Treasury Washington D. C. worth
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Page 25 - FSLIC-insured funds; strengthened enforcement authority; and extend expiring tax provisions. In closing, I urge this committee in the strongest possible terms to resist mounting pleas for an unnecessary, budget busting bailout of FSLIC. The precious resources of our taxpayers should not be tapped until the existing plan has had a chance to work and all other reasonable available resources have been used.
Page 225 - No such officer, employee, attorney, or agent shall be paid compensation at a rate in excess of the rate provided in the case of members of the board. The board shall be entitled to the free use of the United States...
Page 246 - GAAP, and items based on risk analysis reporting ("RAR") that are not part of GAAP equity capital. Mutual Insured institutions can only obtain external capital through the sale of subordinated debt, which would not qualify as GAAP capital, but is generally treated as capital for RAR purposes. In keeping with this policy of applying GAAP accounting standards to insured institutions to the extent it is reasonable and possible to do so, the Board has proposed to amend its statements of policy relating...
Page 225 - ... employment, compensation, leave, and expenses shall be governed solely by the provisions of this Act, specific amendments thereof, and rules and regulations of the Board not inconsistent therewith; and funds derived from such assessments shall not be construed to be Government funds or appropriated moneys.
Page 232 - OPN's unresponsiveness the Board has taken positive and aggressive action to strengthen its examination and supervisory efforts. As of July 6, 1985, the Board transferred its field examination function to the Federal Home Loan Banks (•PRLBanks") in order to build a well-trained, effective, and efficient field examination force.
Page 90 - I did have a prepared statement, which I would like to ask unanimous consent to have inserted in the record.
Page 225 - The board shall have power to select, employ, and fix the compensation of such officers, employees, attorneys, and agents as shall be necessary for the performance of its duties under this Act without regard to the provisions of other laws applicable to the employment or compensation of officers, employees, attorneys, and agents of the United States.
Page 234 - April 12, 198%, and culminating as recently as May 22. 1987, to ensure that, despite any staffing or other constraints, the FHLBanks and the Board's staff respond decisively to all material violations, and to highlight particular areas of concern. Another tool related to an effective enforcement program is civil litigation in the federal courts. Over the last four years the Board has nearly quadrupled the size of its litigation staff, thereby substantially increasing suits against officers, directors,...
Page 245 - January 1, 1987. will initially equal approximately 3 percent and will increase each year (until it reaches 6 percent) by a fraction of the average profitability in the industry during the preceding year. An institution's specific initial requirement will depend on its base requirement under the regulation in effect prior to January 1, 1987. The contingency component requires institutions to hold incremental capital against certain assets. The contingency component includes a...
Page 232 - calling* our guarantee, and required FSLIC to send over $1 billion in cash to the Dallas Bank. It has also meant that very substantial FSLIC guarantees 10 are unlikely to be made in the future until FSLIC is restored to financial health. FSLIC guaranteed loans used to be an effective means of ‘leveraging' our very limited cash. Without such guarantees, many problem thrifts must increase their deposit rates to maintain their liquidity. This, in turn, increases their net operating losses, which are...