Liquidation of Failed Bank Assets at Risk Due to Inadequate Manual and Automated Processes

T-AIMD-94-56: Published: Nov 9, 1993. Publicly Released: Nov 9, 1993.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO discussed the automated systems that the Federal Deposit Insurance Corporation (FDIC) uses in liquidating failed bank assets. GAO noted that: (1) FDIC does not have basic internal controls in place to ensure that manual and computerized asset files accurately reflect the actual status of assets; (2) manual and automated files are not properly updated; (3) assets are grossly overvalued and cash receipts are not accounted for; (4) FDIC has taken steps to correct internal control problems, but it has not determined if its actions are adequate to resolve the problems or whether internal control problems exist at other offices; (5) FDIC does not maximize cash recoveries on the assets because of systematic weaknesses and inadequate systems design; and (6) FDIC has taken steps to improve its manual and computerized asset liquidation processes, but it is too soon to determine if the implementation of these improvements will resolve internal control problems.

Nov 3, 2015

Sep 4, 2015

Jul 30, 2015

Jul 27, 2015

Jun 25, 2015

Jun 11, 2015

May 22, 2015

May 5, 2015

Apr 30, 2015

Apr 15, 2015

Looking for more? Browse all our products here