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![handle is hein.gao/gaobaawsa0001 and id is 1 raw text is:
DOCIWT 235=
05092 - (:06655771 (Bestricted)
[FDZC actions on the Sank of Nbeeling. t VBe gia. VOD-78-1;
B-114831. Batch 6. 1978. 5 pp.
Report to Sen. Llian proumires Cmimma Senate Committee on.
Banking Bosing and Urban Affairs; by Elmer a. Stats,
Comptroller General.
Contact: Field Operations Div.
Budget Func-Lon: General Governmet: Zzecutive Direction and
naasent (802).
Organisation oncerned: Bank of rheei-age IV; Federal. Deposit
Insurance Corp.
Conrosional Relevance: Senate Committee oa ag, Doung
an4 Oftabu Aftait. Sea. Wiam frozixe.
the Federal Deposit Insurance Crpoation's (DZC08s
procedures and act! -n in noti'fyimg the pW -per awthoties of
alleged violations of criJinal law at. a bank _wee ev, luted The
FDIC had for al, required procedures for reportiLngsuspected
crininal violations, and optional followuq ando othez, legal or
administrative proceduces ret forced the, require-. proceducer.
The bank' a first FDI examination shoed: that. the hbak,mas, in
q nod financial condition. le. next examination, 7- onths ]La:er,
showed that the bank was near insolvenq, because.Ait -bad.- gzanted
several bad loans and that criminal lan had. ptobably been
violated. The FDIC took reqazed and- admiaLstrativGactions by
preparing internal memoranda and by condacting amenatag: on the
bank's insurablity. Two months after thmtseco&nd.eAmintion,
the regional examiner sent a memozandu-to7-headuaVezrs statin.
(1) because the FBI had been notified and wis ivestigatng the
case, a report to the U.3. attorney- was not piepa re and (2)
the bank'os bonding company had been notified. of -.possibl -
criminal actions. Tech nically the ZIC. did not follow. its
reportlng proesdues because it did not mad &.*ttr' to the.
U.S. Attotney, stating that criminal lms mIght have been
violate. lowever, while act completely in accedace mith
establiLsed pocedures, the FDIC's s actions. ere effective
because the proper authorities mere actitied. (3R1)](ViewImageLocal?handle=hein.gao/gaobaawsa0001&div=1&collection=&method=preview&ext=.png&size=3)