Audit Memorandum - Results of OIG Review of the Backup Examina

Federal Deposit Insurance Corporation Washington, D.C. 20434 Office of Inspector GeneralMEMORANDUM TO:FROM:SUBJECT:Backup Examination Process and DOS’s Efforts to Monitorimprove the effectiveness with which DOS carries out the Corporation’s responsibility to(OTS).events leading to the closing of The First National Bank of Keystone, Keystone, Westinformation and gaining access to banks. The most troubling situation involved thesmall and medium-sized institutions, there have been few substantive problems in sharinggood working relationships with the other federal regulators, and that when dealing withbackup activity. Overall, we found that DOS regional managers believe that they haveFor the 42-month period ending March 31, 1999, we identified 90 instances ofGovernors of the Federal Reserve System (FRB), and the Office of Thrift Supervisionhas received from the Office of the Comptroller of the Currency (OCC), the Board ofexaminations in a backup capacity, we focused on assessing the level of cooperation DOSIn reviewing the process whereby the FDIC participates in safety and soundnessoffice will continue to monitor and evaluate developments in these areas.monitor its insurance risk. We consider these issues to be extremely important, and mythe cooperation between the FDIC and the other federal banking regulators, and tomemorandum offers suggestions for your consideration regarding the need to strengthen“megabanks” as insured institutions with ...