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Follow-up Report on Matters Relating to Securities Arbitration

Description: Correspondence issued by the General Accounting Office with an abstract that begins "Our June 2000 report Securities Arbitration: Actions Needed to Address Problem of Unpaid Awards revealed that, although investors had won a majority of awards against brokers, a high proportion of those awards had not been paid. Nearly all of the unpaid awards involved cases decided in the National Association of Securities Dealer's (NASD) arbitration program and most involved brokers that had left the securities industry. A year later we reported on limited data suggesting that the rate of unpaid awards had declined. However, we noted that given the short time period that the data covered, regulators needed to continue monitoring the payment of the awards to determine whether additional steps need to be taken. Arbitration attorneys and claimants have also expressed concern about the timeliness of NASD's updating of arbitrator disclosure information, which can be used by the parties in arbitration to judge the competence and objectivity of arbitrators, and with NASD's ability to remove arbitrators from cases if conflicts arise. In addition, arbitration attorneys also expressed concern about the use of motions to dismiss and motions for summary judgment to terminate NASD-administered arbitration cases. This report responds to requests that we review the status of issues relating to securities arbitration and award payment. Our objectives were to (1) describe NASD's procedures to ensure the timely updating of disclosure information that arbitrators provide and NASD's procedures for removing arbitrators from cases, (2) provide information on the use of motions to dismiss and motions for summary judgment in arbitrations, and (3) describe recent changes in the rate of unpaid awards and the number of arbitration claims filed with NASD."
Date: April 11, 2003
Creator: United States. General Accounting Office.
Partner: UNT Libraries Government Documents Department

Financial Institutions: Causes and Consequences of Recent Failures of Community Banks

Description: Testimony issued by the Government Accountability Office with an abstract that begins "Ten states concentrated in the western, midwestern, and southeastern United States--all areas where the housing market had experienced strong growth in the prior decade--experienced 10 or more commercial bank or thrift (bank) failures between 2008 and 2011. The failures of the smaller banks (those with less than $1 billion in assets) in these states were largely driven by credit losses on commercial real estate (CRE) loans. The failed banks also had often pursued aggressive growth strategies using nontraditional, riskier funding sources and exhibited weak underwriting and credit administration practices. Fair value accounting also has been cited as a potential contributor to bank failures, but between 2007 and 2011 fair value accounting losses in general did not appear to be a major contributor, as over two-thirds of small failed banks' assets were not subject to fair value accounting. During the course of our work, some state banking associations said that the magnitude of the credit losses were exacerbated by federal bank examiners' classification of collateral-dependent loans and evaluation of appraisals used by banks to support impairment analysis of these loans. Federal banking regulators noted that regulatory guidance on CRE workouts issued in October 2009 directed examiners not to require banks to write down loans to an amount less than the loan balance solely because the value of the underlying collateral had declined, and that examiners were generally not expected to challenge the appraisals obtained by banks unless they found that underlying facts or assumptions about the appraisals were inappropriate or could support alternative assumptions."
Date: March 20, 2013
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

State-Level Information on Negative Home Equity and Loan Performance in the Nonprime Mortgage Market

Description: Correspondence issued by the Government Accountability Office with an abstract that begins "The decline of home prices in many parts of the country has left millions of homeowners with negative home equity, meaning that their outstanding mortgage balances exceed the current value of their homes. As we reported to you previously, a substantial proportion of borrowers with active nonprime mortgages (including subprime and Alt-A loans) had negative equity in their homes as of June 30, 2009. For example, among the 16 metropolitan areas examined, we estimated that the percentage of nonprime borrowers with negative equity ranged from about 9 percent (Denver, Colorado) to more than 90 percent (Las Vegas, Nevada). Research indicates that negative home equity substantially increases the risk of mortgage delinquency, making it an important dimension of ongoing problems in the nonprime market. To provide insight into how negative equity and loan performance among nonprime borrowers have varied by location and over time, this report examines, at the state level, the estimated proportion of nonprime borrowers with active loans that were in a negative equity position and the proportion that were seriously delinquent on their loan payments from 2006 through the end of 2009. This report is part of our broader examination of the evolution and condition of the nonprime market segment."
Date: May 14, 2010
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

Financial Institutions: Causes and Consequences of Recent Community Bank Failures

Description: Testimony issued by the Government Accountability Office with an abstract that begins "Ten states concentrated in the western, midwestern, and southeastern United States--areas where the housing market had experienced strong growth in the prior decade--each experienced 10 or more commercial bank or thrift (bank) failures between 2008 and 2011. The failures of small banks (those with less than $1 billion in assets) in these states were largely driven by credit losses on commercial real estate (CRE) loans, particularly loans secured by real estate to finance land development and construction. Many of the failed banks had often pursued aggressive growth strategies using nontraditional, riskier funding sources and exhibited weak underwriting and credit administration practices. The Department of the Treasury and the Financial Stability Forum's Working Group on Loss Provisioning observed that earlier recognition of credit losses could have potentially lessened the impact of the crisis. The accounting model used for estimating credit losses is based on historical loss rates, which were low in the prefinancial crisis years. In part due to these accounting rules, loan loss allowances were not adequate to absorb the wave of credit losses that occurred once the financial crisis began. Banks had to recognize these losses through a sudden series of increases (provisions) to the loan loss allowance that reduced earnings and regulatory capital. In December 2012, the Financial Accounting Standards Board issued a proposal for public comment for a loan loss provisioning model that is more forward looking and would incorporate a broader range of credit information. This would result in banks establishing earlier recognition of loan losses for the loans they underwrite and could incentivize prudent risk management practices. It should also help address the cycle of losses and failures that emerged in the recent crisis as banks were forced to increase loan loss allowances ...
Date: June 13, 2013
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

Observations on the Department of the Treasury's Fiscal Year 2000 Performance Plan

Description: Correspondence issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO reviewed the Department of the Treasury's fiscal year (FY) 2000 performance plan that was submitted to Congress as required by the Government Performance and Results Act of 1993, focusing on the: (1) usefulness of the agency's plan for decisionmaking; and (2) degree of improvement the agency's FY 2000 performance plan represents over the FY 1999 plan."
Date: July 20, 1999
Creator: United States. General Accounting Office.
Partner: UNT Libraries Government Documents Department

Observations on the Department of the Treasury's Fiscal Year 1999 Performance Report and Fiscal Year 2001 Performance Plan

Description: Correspondence issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO reviewed the Department of the Treasury's fiscal year (FY) 1999 performance report and FY 2001 performance plan required by the Government Performance and Results Act of 1993."
Date: June 30, 2000
Creator: United States. General Accounting Office.
Partner: UNT Libraries Government Documents Department

Capital Structure of the Federal Home Loan Bank System

Description: Correspondence issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO provided information on the capital structure of the Federal Home Loan Bank System."
Date: August 31, 1999
Creator: United States. General Accounting Office.
Partner: UNT Libraries Government Documents Department

The Cooperative Model as a Potential Component of Structural Reform Options for Fannie Mae and Freddie Mac

Description: Correspondence issued by the Government Accountability Office with an abstract that begins "On September 6, 2008, the Federal Housing Finance Agency (FHFA) placed the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) into conservatorships. FHFA took this step after concern developed that the deteriorating financial condition of the two government-sponsored enterprises (GSE), which had about $5.4 trillion in combined financial obligations, threatened the stability of financial markets. Since then, the Department of the Treasury (Treasury) has provided financial support to Fannie Mae and Freddie Mac (the enterprises) to help stabilize their financial condition and help ensure their ability to continue to support housing finance. As of September 2010, Treasury had provided about $150 billion in capital contributions to support the enterprises, and the Congressional Budget Office has estimated that the total cost to taxpayers could be nearly $400 billion over a 10-year period. In recent months, Congress and the administration have been considering a variety of proposals to reform the enterprises in order to help ensure their safety and soundness and the effectiveness of the U.S. housing finance system. We issued a report under the Comptroller General's authority on structural reform options for the enterprises in September 2009 and, on the basis of subsequent congressional interest, we conducted this work as a follow-up effort, also under the Comptroller General's authority. This letter summarizes briefings that we provided to the staffs of the Senate Committee on Banking, Housing, and Urban Affairs and the House Financial Services Committee. Our objectives were to (1) identify the key characteristics of the cooperative model, (2) discuss the cooperative model's potential role as part of any long-term structural reform option for the enterprises, (3) discuss some likely advantages and disadvantages of the cooperative model as a potential reform option ...
Date: November 15, 2010
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

Issues Involving the Use of the Futures Markets to Invest in Commodity Indexes

Description: Correspondence issued by the Government Accountability Office with an abstract that begins "Until mid-2008, prices for a broad range of physical commodities, from crude oil to crops such as wheat, had increased dramatically for several years--raising concerns and leading to a debate over the possible causes. Some market participants and observers have attributed the price increases to fundamental economic factors related to supply and demand. Others have suggested that the price increases resulted from speculation in the futures contracts by hedge funds and investors in commodity indexes. Like stock indexes, commodity indexes track the composite price of a basket of long futures positions in physical commodities. The indexes' investment strategy is passive, remaining the same regardless of whether prices are falling, rising, or flat. Two commonly referenced commodity indexes are the Standard & Poor's Goldman Sachs Commodity Index (S&P GSCI) and Dow Jones-American International Group Commodity Index (DJ-AIGCI), which are based on a broad range of physical commodities, including energy products, agricultural products, and metals. Since around the mid-2000s, pension plans, endowments, and other institutional investors increasingly have used investments in commodity indexes to obtain exposure to commodity prices as an asset class, typically to diversify their portfolios or hedge inflation risk. To prevent excessive speculation that could cause unwarranted changes in futures prices, the Commodity Futures Trading Commission (CFTC) and futures exchanges place limits on the size of futures positions--the number of contracts--that a trader may hold. In agreement with your office, this report addresses (1) whether the federal law governing futures trading prohibits investors from using the futures markets to gain an exposure to commodity indexes, (2) whether the federal law governing pension plans prohibits them from investing in commodities through the futures markets, (3) how margins have affected the ability of investors to obtain exposures to commodity ...
Date: January 30, 2009
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

Loan Performance and Negative Home Equity in the Nonprime Mortgage Market

Description: Correspondence issued by the Government Accountability Office with an abstract that begins "As GAO reported to Congress in July 2009, the number of nonprime mortgage originations (including subprime and Alt-A loans) grew rapidly from 2000 through 2006, a period during which average house prices appreciated dramatically. In dollar terms, the nonprime share of mortgage originations rose from about 12 percent ($125 billion) in 2000 to approximately 34 percent ($1 trillion) in 2006. These mortgages have been associated with what was subsequently recognized as a speculative housing bubble. As house prices subsequently fell, the subprime and Alt-A market segments contracted sharply, and very few nonprime originations were made after mid-2007. Borrowers who had obtained nonprime mortgages earlier in the decade increasingly fell behind on their mortgage payments, helping to push default and foreclosure rates to historical highs. Economic conditions and a weak housing market have contributed to the increase in troubled loans. In particular, falling house prices have left many borrowers in a negative equity position--that is, their mortgage balances exceed the current value of their homes. Negative equity makes borrowers more vulnerable to foreclosure by, among other factors, limiting their ability to sell or refinance their homes in the event they cannot stay current on their mortgage payments. To inform congressional decision making about efforts to address problems in the mortgage market, Congress requested that GAO examine the evolution and condition of the market for nonprime loans. On July 28, 2009, GAO provided Congress with an interim report on certain characteristics of nonprime loans and borrowers, and the performance of nonprime mortgages originated from 2000 through 2007 (the last year in which substantial numbers of nonprime mortgages were made) as of March 31, 2009. This report (1) provides information on the performance of these nonprime loans as of June 30, ...
Date: December 16, 2009
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

Management Report: Opportunities for Improvements in FDIC's Shared Loss Estimation Process

Description: Correspondence issued by the Government Accountability Office with an abstract that begins "During our audit of the DIF’s 2011 and 2010 financial statements, we identified deficiencies in controls over FDIC’s process for deriving and reporting estimates of losses to the DIF from resolution transactions involving shared loss agreements. While these deficiencies, individually and collectively, did not constitute a material weakness in internal control over financial reporting, they nevertheless increased the risk of additional undetected errors or irregularities in the DIF’s financial statements. Thus, these control deficiencies collectively represented a significant deficiency in FDIC’s internal control over financial reporting for the DIF related to estimating losses from shared loss agreements."
Date: July 19, 2012
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

Response to Questions Relating to H.R. 3717, Federal Deposit Insurance Reform Act of 2002

Description: Correspondence issued by the General Accounting Office with an abstract that begins "The Federal Deposit Insurance Reform Act of 2002 would change the definition of the reserve ratio for the deposit insurance fund and provide the Federal Deposit Insurance Corporation (FDIC) with the flexibility to set the fund's designated reserve ratio within a range. Current law requires FDIC to maintain the deposit insurance fund balances at a reserve ratio of at least 1.25 percent of estimated insurance deposits. If the reserve ratio falls below that level, FDIC's Board of Directors must set semiannual assessment rates that are sufficient to increase the reserve ratio to the designated reserve ratio within a year, or in accordance with a recapitalization schedule of 15 years or less."
Date: April 16, 2002
Creator: United States. General Accounting Office.
Partner: UNT Libraries Government Documents Department

Information on Selected Issues Concerning Banking Activities

Description: Correspondence issued by the Government Accountability Office with an abstract that begins "This letter responds to Congress's request for information on (1) selected federal expenditures, policies, and programs that affect the U.S. banking industry and (2) certain banking industry trends. These include the savings and loan industry crisis, trade finance, tax policies, and profits and executive compensation. Congress's letter also asked us for information on bank fees; as agreed with Congressional staff, we will discuss this topic in a separate report. On December 11, 2006, we briefed Congressional staff on information gathered during our preliminary work. This letter summarizes and updates the information presented at the briefing."
Date: April 30, 2007
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

Overview of GAO's Past Work on FHA's Single-Family Mortgage Insurance Programs

Description: Correspondence issued by the Government Accountability Office with an abstract that begins "Among other things, GAO's past work discusses FHA's financial condition and steps the agency has taken to improve its financial condition. As housing prices began to decline at the end of 2006 and conventional mortgage lenders tightened their underwriting standards, more homebuyers began taking advantage of FHA-insured loans, which tend to have less strict underwriting standards and require lower down payments, as compared with conventional loans. As a result, FHA's share of the market increased. In 2006, FHA insured approximately 4.5 percent of purchase mortgages. At its peak in 2009, it insured 32.6 percent of purchase mortgages. In 2011, its share of purchase mortgages fell to 26.5 percent."
Date: March 7, 2013
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

Follow-Up on GAO Recommendations Concerning the Securities Investor Protection Corporation

Description: Correspondence issued by the Government Accountability Office with an abstract that begins "This letter responds to a Congressional request that GAO report on the status of our recommendations relating to the Securities and Exchange Commission's (SEC) oversight of the Securities Investor Protection Corporation (SIPC) and investor education. As requested, this letter also includes information on SIPC's progress in implementing SEC's recommendations from its January 2003 examination of SIPC and the status of excess SIPC coverage. Specifically, GAO'S objectives were to (1) determine the status of our recommendations to SEC and SIPC from our two previous reports on SIPC, (2) review recent actions SIPC has taken to address recommendations from the 2003 SEC examination report, and (3) determine the status of excess SIPC coverage after three U.S. insurers ceased offering the product."
Date: July 9, 2004
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

Hedge Funds: Overview of Regulatory Oversight, Counterparty Risks, and Investment Challenges

Description: Testimony issued by the Government Accountability Office with an abstract that begins "In 2008, GAO issued two reports on hedge funds--pooled investment vehicles that are privately managed and often engage in active trading of various types of securities and commodity futures and options contracts--highlighting the need for continued regulatory attention and for guidance to better inform pension plans on the risks and challenges of hedge fund investments. Hedge funds generally qualified for exemption from certain securities laws and regulations, including the requirement to register as an investment company. Hedge funds have been deeply affected by the recent financial turmoil. But an industry survey of institutional investors suggests that these investors are still committed to investing in hedge funds in the long term. For the first time hedge funds are allowed to borrow from the Federal Reserve under the Term-Asset Backed Loan Facility. As such, the regulatory oversight issues and investment challenges raised by the 2008 reports still remain relevant. This testimony discusses: (1) federal regulators' oversight of hedge fund-related activities; (2) potential benefits, risks, and challenges pension plans face in investing in hedge funds; (3) the measures investors, creditors, and counterparties have taken to impose market discipline on hedge funds; and (4) the potential for systemic risk from hedge fund-related activities. To do this work we relied upon our issued reports and updated data where possible"
Date: May 7, 2009
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

Final Report Regarding the Findings of the Study Group On the Feasibility of Using Alternative Financial Instruments For Determining Lender Yield Under the Federal Family Education Loan Program

Description: Other written product issued by the General Accounting Office with an abstract that begins "The Department of Education and GAO conducted a study of the feasibility of using alternative financial instruments for determining lender yields on student loans. Chapter one of the report provides an overview of federal student loan programs and their participants. Chapters two and three contain the analyses of the historical liquidity of the market for four types of financial instruments. Chapter four analyzes recent changes in the liquidity of the market for each financial instrument in a balanced federal budget and low interest rate environments, and projections of future liquidity assuming the federal budget remains in balance. Finally, Chapter five presents GAO's and Education's analyses of the remaining three issues enumerated in the Higher Education Act Amendments of 1998 and addresses the question of any possible risks or benefits to the student loan programs and to student borrowers."
Date: January 19, 2001
Creator: United States. General Accounting Office.
Partner: UNT Libraries Government Documents Department

Futures Markets: Approach for Examining Oversight of Energy Futures

Description: Testimony issued by the Government Accountability Office with an abstract that begins "Record high crude oil and natural gas prices have generated significant concerns by the public and members of Congress that the high and relatively volatile prices may be the result of factors other than market forces. Several members of the House and the Senate have expressed concerns over the upward trending prices and factors that may be causing the perceived increases in volatility of several energy commodities, including crude oil, gasoline, natural gas, and heating oil. As a result, we initiated this study under the authority of the Comptroller General. This testimony focuses on our ongoing study of (1) changes in energy futures markets and volatility since 2000 and (2) Commodity Futures Trading Commission (CFTC) surveillance and enforcement activities in the oversight of energy futures trading."
Date: May 4, 2006
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

Corporate Governance: NCUA's Controls and Related Procedures for Board Independence and Objectivity Are Similar to Other Financial Regulators, but Opportunities Exist to Enhance Its Governance Structure

Description: Correspondence issued by the Government Accountability Office with an abstract that begins "During recent congressional hearings and in public speeches, statements made by the National Credit Union Administration's (NCUA) Chairman and another board member raised congressional interest in the ability of NCUA to collect and objectively analyze data on credit union membership and executive compensation. More generally, these statements also raised issues about the agency's overall vigilance as a regulator and the independence and objectivity of NCUA's board and senior staff from the industry being regulated. As a result, Congress asked us to expand upon our current work looking at the tax-exempt status of credit unions to include a review of governance policies and procedures for NCUA's board of directors and senior staff and more specifically how the policies and procedures address independence and objectivity issues. This correspondence (1) compares controls and related procedures applicable to NCUA that help ensure the independence and objectivity of its board members with those of other federal financial regulatory agencies and relevant recommended management practices identified in academic and industry literature and (2) describes NCUA's use of Schedule C staff compared with that of other federal financial regulatory agencies."
Date: November 30, 2006
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

Responses to Questions Relating to H.R. 3717, Federal Deposit Insurance Reform Act of 2002

Description: Correspondence issued by the General Accounting Office with an abstract that begins "The Federal Deposit Insurance Reform Act of 2002 would change the definition of the reserve ratio for the deposit insurance fund, and provide the Federal Deposit Insurance Corporation (FDIC) with the flexibility to set the fund's designated reserve ratio within a range. Current law requires FDIC to maintain the deposit insurance fund balances at a designated reserve ratio of at least 1.25 percent of estimated insurance deposits. If the reserve ratio falls below that level, FDIC's Board of Directors must set semiannual assessment rates that are sufficient to increase the reserve ratio to the designated reserve ratio within a year, or in accordance with a recapitalization schedule of 15 years or less."
Date: April 16, 2002
Creator: United States. General Accounting Office.
Partner: UNT Libraries Government Documents Department

Securities Markets: Preliminary Observations on the Use of Subpenny Pricing

Description: Testimony issued by the Government Accountability Office with an abstract that begins "In 2001, U.S. stock and options markets, which had previously quoted prices in fractions, began quoting in decimals. Since then, various positive and negative effects have been attributed to the transition to decimal pricing. As part of this transition, the major stock markets chose one penny ($.01) as the minimum price variation for quoting prices for orders to buy or sell. However, some electronic trading systems allowed their customers to quote in increments of less than a penny (such as $.001). The use of subpenny prices for securities trades has proved controversial and the Securities and Exchange Commission (SEC) has proposed a ban against subpenny quoting for stocks priced above one dollar across all U.S. markets. As part of ongoing work that examines a range of issues relating to decimal pricing, GAO reviewed (1) how widely subpenny prices are used and by whom, (2) the advantages and disadvantages of subpenny pricing cited by market participants, and (3) market participants' reactions to SEC's proposed ban."
Date: July 22, 2004
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

Energy Derivatives: Preliminary Views on Energy Derivatives Trading and CFTC Oversight

Description: Testimony issued by the Government Accountability Office with an abstract that begins "Energy prices for crude oil, heating oil, unleaded gasoline, and natural gas have risen substantially since 2002, generating questions about the reasons for the increase. Some observers believe that the higher energy prices were solely due to supply and demand fundamentals while others believe that increased futures trading activity may also have contributed to higher prices. This testimony highlights GAO's preliminary findings related to (1) trends and patterns in the futures and physical energy markets and the effect of these trends on energy prices and (2) the Commodity Futures Trading Commission's (CFTC) regulatory and enforcement authority over derivatives markets. GAO analyzed futures and large trader reporting data; trading data obtained from the New York Mercantile Exchange (NYMEX) for crude oil, heating oil, unleaded gasoline, and natural gas; and various other sources of energy-related data. GAO also analyzed relevant academic and other studies on the subject and interviewed market participants, experts, and officials at relevant federal agencies."
Date: July 12, 2007
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department

Farmer Mac: Greater Attention to Risk Management, Mission, Public Purpose, and Corporate Governance Is Needed

Description: Testimony issued by the General Accounting Office with an abstract that begins "This testimony is based on GAO's October 2003 report, Farmer Mac: Some Progress Made, but Greater Attention to Risk Management, Mission, and Corporate Governance Is Needed (GAO-04-116). GAO's testimony presents a brief overview of Farmer Mac and discusses issues raised in its 2003 report, including Farmer Mac's risk management practices and line of credit with Treasury, mission related activities, board structure, and oversight, which is provided by the Farm Credit Administration (FCA)."
Date: June 2, 2004
Creator: United States. General Accounting Office.
Partner: UNT Libraries Government Documents Department

Financial Institutions: Issues Regarding the Tax-Exempt Status of Credit Unions

Description: Testimony issued by the Government Accountability Office with an abstract that begins "Unlike other depository institutions, credit unions are exempt from federal corporate income taxes. Recent legislative and regulatory changes to credit union membership restrictions and allowable products and services have blurred some of the historical distinctions between credit unions and other depository institutions. As a result, some observers have raised questions about whether tax exemption provides credit unions with an advantage over other depository institutions and whether the original basis for tax exemption is still valid. As part of its continuing oversight of the tax-exempt sector, the House Committee on Ways and Means asked GAO to address (1) the historical basis for the tax-exempt status of credit unions; (2) the arguments for and against taxation, including estimates of potential revenue from eliminating the exemption; (3) the extent to which credit unions offer services distinct from those offered by banks of comparable size, and serve low-and moderate-income individuals; and (4) the extent to which credit unions are required to report information on executive compensation and assessments of their internal controls."
Date: November 3, 2005
Creator: United States. Government Accountability Office.
Partner: UNT Libraries Government Documents Department