Supplemental Information on Portfolio Sales

Pursuant to a congressional request, GAO provided supplemental information about the disposition of failed banks' assets, including portfolio sales of participating cash flow mortgages. GAO also provided responses to questions regarding the staff study of a specific bank's transactions and the overall strengths and weaknesses of the concept of portfolio sales. GAO believes that: (1) the use of portfolio sales using participating cash flow mortgages could be an important disposition strategy for the Resolution Trust Corporation's (RTC) least marketable real estate assets; and (2) further RTC actions are necessary to improve the pilot portfolio sales and any future transactions.