During the mid-1980s Savings and loan crisis, First American was declared insolvent and taken over by the Federal Savings and Loan Insurance Corporation (FSLIC). It continued in business as before, run by individuals brought in by FSLIC. There were no bondholders of First American and Walker and his wife were the only stockholders. When the two loans described above were repaid, Walker was released from probation and the case against him was closed. There was no cost to taxpayers for his specific loans, but in 1989, First American and another Chicago area S&L were bailed out by tax payers for just under $80 million. First American had $22.2 million in negative equity at that point.