Resolution Trust Corporation: Effectiveness of Auction Sales Should Be Demonstrated
GGD-92-7
Published: Oct 31, 1991. Publicly Released: Oct 31, 1991.
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Highlights
Pursuant to a congressional request, GAO provided information on the Resolution Trust Corporation's (RTC) national satellite auction, focusing on whether: (1) the auction program design was conceptually sound; and (2) auctions were a viable and effective method for selling real estate assets.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Resolution Trust Corporation | The Resolution Trust Corporation (RTC) should determine the effectiveness of auctions used to sell its real estate by comparing a sample of the results of auction sales with results realized on various other sales methods, particularly sales by brokers. |
Closed – Not Implemented
On June 3, 1994, RTC advised GAO that it had not undertaken the study it had agreed to do to compare the results of auction sales with the results of other sales methods used by RTC to dispose of assets. The Vice President of Asset Management and Sales told GAO that since the study had not been done, it was RTC's position that a thorough study at this time was neither cost-effective nor useful. Since RTC has already sold about 93 percent of its assets, little benefit would be realized in doing the study at this late date in RTC's existence (RTC will cease operations in December 1995). GAO concurs that making the recommended study, at this time, would not provide the benefits originally envisioned by the recommendation.
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Brokerage industryComparative analysisCost effectiveness analysisStaff utilizationMarketingProperty disposalReal estate salesReal propertyPrivate sectorFinancial institutions