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GGD-81-91 1 (1981-09-17)

handle is hein.gao/gaobabckd0001 and id is 1 raw text is: 



BY THE US, GENERAL ACCOUNTING OFFICE



Report To The Chairman Of The

Federal Home Loan Bank Board




Formal Supervisory Process For

Savings And Loan Associations

Should Be Strengthened



Supervisory agreements and cease and desist
orders are two formal enforcement tools used
by the Federal Home Loan Bank Board to su-
pervise savings and loan institutions with fe-
derally insured deposits.
This report discusses the reluctance of super-
visory personnel to fully use these formal en-
forcement tools because of their long process-
ing times. Instead, supervisory personnel place                      116375
greater reliance on informal actions that may
not be sufficient to achieve corrective action.

in addition, the Federal Home Loan Bank
Board has spent State examiner training pro-
gram funds to train examiners from States
which do not contribute to the program ob-
jective of reducing the Federal examination
burden. For instance, examiners were trained
from States which refuse to share in the ex-
aminations of federally insured, State-char-
tered savings and loan associations. GAO re-
commends action to improve the administra-
tion of the State examiner training program
and the processing of formal supervisory
actions.





        . 2.



                                                                       GGD-81-91
      (                                                        SEPTEMBER 17, 1981
           Ccou-g

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