United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office General Government Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1995-03-15 monographic deposited born digital 51 p. GA 1.13:GGD-95-37 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-95-37 P0b002ee18038792e f:gg95037 DGPO 2010-08-12 2011-03-28 GAOREPORTS-GGD-95-37 machine generated eng fdlp REPORT GAOREPORTS-GGD-95-37 GGD-95-37 Bank failures Financial management Insured commercial banks Financial institutions Bank management Bank examination Banking law Cost effectiveness analysis Bank Insurance Fund BIF Dallas (TX) Houston (TX) Letter Report GGD In fewer than five years, the Federal Deposit Insurance Corporation (FDIC) was called upon twice to resolve the financial problems of the federally insured banks of the First City Bancorporation of Texas, Inc. In April 1988, FDIC provided about $970 million in an attempt to restore First City's financial health. Four years later, the two largest First City banks were deemed insolvent, and FDIC was appointed receiver of all 20 First City banks. This report answers the following four questions: Regarding the first resolution, why did the FDIC Board of Directors decide to resolve First City's financial difficulties in 1988 by providing financial help instead of using other available resolution alternatives? Regarding the second resolution, why did FDIC's estimate of the Bank Insurance Fund costs to resolve First City at the time of the 1992 failure differ so from the estimate when the banks were sold the following year? What, if any, additional cost to the Fund is expected from the second resolution of First City? What lessons does the First City experience offer relevant to the assistance, closure, and resolution process? https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-95-37/html/GAOREPORTS-GGD-95-37.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-95-37/pdf/GAOREPORTS-GGD-95-37.pdf GAO/GGD-95-37 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-95-37 Letter Report GAO/GGD-95-37; Failing Banks: Lessons Learned from Resolving First City Bancorporation of Texas; Bank failures Financial management Insured commercial banks Financial institutions Bank management Bank examination Banking law Cost effectiveness analysis Bank Insurance Fund BIF Dallas (TX) Houston (TX)