Resolution Trust Corporation:
Efforts Under Way to Address Management Weaknesses
GGD-95-109, May 12, 1995
GAO reviewed the Resolution Trust Corporation's (RTC) efforts to address its management weaknesses, focusing on the: (1) long-term viability of the thrift insurance fund; and (2) disposition of RTC operations and workload.
GAO found that: (1) RTC has improved its marketing and disposition methods by implementing two congressionally mandated management reforms, but it still has not implemented a valid sales methodology to identify which RTC sales methods the Federal Deposit Insurance Corporation (FDIC) should adopt; (2) RTC has improved its contracting processes, but it is not closing out contracts in a timely manner; (3) RTC has improved internal accounting controls over receiverships' transactions, accounting operations, and its information systems, but significant contract performance problems continue to exist; (4) the Savings Association Insurance Fund is thinly capitalized and its high premiums could place the thrift industry at a competitive disadvantage when the Bank Insurance Fund's premiums are lowered; (5) to ensure a successful transition of thrift resolutions from RTC to FDIC, the two agencies will require diligent planning and close coordination and sufficient controls over assets to be sold or retained; and (6) FDIC will need to continue to improve the data in its information systems.