Records Relating to Gregorian Commission | State Archives Catalog
On January 7, 1991, Governor Sundlun requested Vartan Gregorian, then President of Brown University, to conduct a study of the reasons for the failure of the Rhode Island Shares and Depositors' Indemnity Corporation (RISDIC.) On January 17, Sundlun issued Executive Order 91-6, which made Gregorian and his designees "agents of the state ... for all actions taken in furtherance of the Governor's Commission." Two months later, on March 14, the Gregorian Commission produced its final report. Titled Carved in Sand: Gregorian Commission Report on the Collapse of RISDIC, the report identified multiple sources of failure, apportioning various degrees of responsibility to the behavior and decisions of member financial institutions insured by RISDIC, RISDIC's financial weakness, RISDIC's lack of managerial oversight, insufficient resources and continuity of leadership at the Department of Business Regulations as well as lack of vigilance on the part of the General Assembly and the Executive branch.
Later that year, the General Assembly created the Depositors Economic Protection Corporation (DEPCO) to assist in managing the liquidation of the failed instituions, to recover monies owing to the institutions, and to protect the interests of those who had held deposits in credit unions, loan and investment companies and bank and trust companies that could no longer obtain deposit insurance. (PL 1991, ch.116.)