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GGD-85-8 1 (1984-11-05)

handle is hein.gao/gaobabevb0001 and id is 1 raw text is: 




BY THE COMPTROLLER GENERAL



Report To The Congress


OF THE UN TD STATES


Net Worth Certificate

Assistance Programs:

Their Design, Major Differences,

And Early Implementation


The Garn-St Germain Depository Institutions Act of 1982
authorized capital assistance programs to savings and loan
associations and savings banks--commonly called thrifts.
These programs are intended to increase the net worth of
weakened thrifts so that they can restructure and return to
profitability.

The act requires GAO to audit the programs, as ad-
ministered by the Federal Home Loan Bank Board and the
F e(eral Deposit Insurance Corporation, and report to the
Congress. GAO's review showed that the Bank Board,
Using discret ion given by the act, developed a program that
differs from F-DIC's. the Bank Board developed a restrictive
prograin which reduces the number of thrifts eligible for
assistanc(e and, until recently, reduced assistance amounts
thrifts could roceive.

Th4; report discloses that the capital assistance provided by
the agencies, while increasing thrifts' net worth for regula-
tory purposes, does not conform to accepted public account-
inq standards. GAO recommends that the agencies qualify
req ii lator y f inancial reports on thrifts and other institutions
prpvi ded to ttli public that differ from those standards
bec tiuse tIre reports could be misleading.







                                                                125549


 Z    'V WGAO/GGD-85-8
                                                           NOVEMBER 5, 1984
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