FDIC Overestimated 2011 Bank Failure Losses, GAO Says

Law360, New York (April 20, 2012, 2:01 PM EDT) -- The Federal Deposit Insurance Corp. fairly presented the 2010 and 2011 financial statements for the funds it administers, but the agency overestimated losses to its Deposit Insurance Fund from 2011 bank failures by hundreds of millions of dollars, a government audit said Thursday.

The U.S. Government Accountability Office said it found deficiencies in the FDIC's controls for deriving and reporting estimates of losses to the DIF from resolution transactions involving shared-loss deals — where the FDIC absorbs a portion of a loss due to a bank...
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