In 1985, at Ernst & Whinney's insistence, Silverado reported a $20-million loss. Management then hired Coopers & Lybrand to replace E&W. C&L subsequently allowed Silverado to report a $15-million profit in 1986. The thrift failed, saddling the government with $1 billion in losses. C&L agreed to pay $20 million to the FDIC. Ernst & Young (E&W's successor) also settled.