Case Teaching Package
A case teaching package is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.

Length
This case is 4 pages in length and its case teaching package is 4 pages.

Abstract

This case deals with a wide variety of questionable transactions. These transactions are characteristic of those that become public knowledge as a result of the investigations associated with the savings and loan bailout of the late 1980s and early 1990s.

Linkages to Textbooks or Journal Articles/Fit Within a Course

This case provides an opportunity to discuss some of the specific transactions associated with the Silverado and Lincoln Savings and Loan scandal. It raises important management, financial reporting, legal, and ethical issues.

Study Questions

1. Analyze the impact of the three types of "quid pro quo" deals upon the financial reports of the S&L (Silverado) and the big developer (use MDC). Use the accounting equation, journal entries, or "T" accounts. Prepare a brief summary of such deals.
2. Analyze the impact of the four types of "back-scratching" deals upon the financial reports of both S&Ls (Lincoln and Silverado) and the big developer (MDC). Use the accounting equation, journal entries, or "T" accounts. Prepare a brief summary of such deals.
3. Analyze the impact of the three types of "sham" deals upon the financial reports of the S&L (Lincoln) and the big developer (MDC). Use the accounting equation, journal entries, or "T" accounts. Prepare a brief summary of such deals.
4. Analyze the S&L situation from an ethical perspective, such as the utilitarian view (long-term consequences for society as a whole, the greatest good for the greatest number of people, stakeholder analysis, etc.) and the general law test (a precedent for all future actions, suppose everyone behaved this way, etc.).

The downloadable file for this case is in Microsoft® Word 7.0 for Windows®.

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