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see also Concord Consumer Hous. Corp. v. Commissioner, 89 T.C.
105, 106-107 n.3 (1987).
Our analysis begins with a general background of the FDIC
and the pertinent insurance funds. Congress established the FDIC
in 1933 to insure bank deposits, see Lebron v. National R.R.
Passenger Corp., 513 U.S. 374, 388 (1995); FDIC v. Godshall, 558
F.2d 220, 221 (4th Cir. 1977), and it established the Federal
Savings and Loan Insurance Corporation (FSLIC) in 1934 to insure
savings association deposits, see United States v. Winstar Corp.,
518 U.S. 839, 844 (1996). Savings associations were required to
participate in the FSLIC insurance system but could withdraw from
the FSLIC insurance fund by converting from a Federal to a State
charter. See Great W. Bank v. Office of Thrift Supervision, 916
F.2d 1421, 1423 (9th Cir. 1990).
High interest rates, inflation, Government deregulation,
fraud, and insider abuse caused a crisis in the savings
association industry during the late 1970's and the 1980's. The
FSLIC’s insurance fund was threatened by this crisis when a large
number of failing savings associations approached the FSLIC with
deposit insurance liabilities and hundreds of savings
associations actually failed. The FSLIC’s insurance fund became
insolvent by billions of dollars after the FSLIC paid out
billions of dollars to cover the failed savings associations’
insured deposits and incurred additional liabilities on its
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