Resolution Trust Corporation's Compliance as of June 30, 1990
AFMD-91-41: Published: Dec 21, 1990. Publicly Released: Jan 23, 1991.
- Full Report:
Pursuant to a congressional request, GAO assessed the Resolution Trust Corporation's (RTC) compliance with the maximum RTC obligation limit that the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) set forth.
GAO found that: (1) RTC did not omit any of the FIRREA-required formulas from its calculations; (2) RTC was working to correct several minor errors and miscalculations in its financial accounts that did not have a material effect on its calculations; (3) the size of the excess available balance indicated that RTC probably had not exceeded the limitation; (4) the RTC operating plan for October 1990 through March 1991 indicated that it would face a funding crisis and would have to slow down its resolution activity; (5) the Department of the Treasury believed that without additional funding, RTC resolution activity would cease before the end of 1991; (6) the RTC Oversight Board took some short-term steps to rectify RTC funding needs through early 1991; and (7) in response to GAO recommendations, RTC was developing a receivership tracking system, implementing procedures to secure advances to resolution conservatorships, and establishing loss reserves for contingent liabilities.