Failed Thrifts:

Resolution Trust Corporation and 1988 Bank Board Resolution Actions

T-GGD-90-29: Published: Apr 2, 1990. Publicly Released: Apr 2, 1990.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed the Resolution Trust Corporation's (RTC) resolution of insolvent thrifts. GAO noted that: (1) RTC had either sold or liquidated 52 thrifts and placed 350 thrifts in its conservatorship program as of March 21, 1990; (2) RTC expected to become responsible for resolving 558 to 628 institutions; (3) the pace and structure of RTC resolutions and its marketing and selection process represent a significant improvement over those of the Federal Home Loan Bank Board (FHLBB); (4) RTC assigned the highest priority to disposing of thrifts with the most rapidly mounting losses; (5) RTC did not always act quickly enough to sell thrifts where high buyer interest was demonstrated; (6) proper implementation of RTC thrift-resolution policies should ensure avoidance of risk exposure, cost, and uncertainties that existed and continue to exist for FHLBB resolutions; (7) RTC experienced high turnover of conservatorship managing agents; (8) RTC acquired many of its conservatorship agents from the private sector, and they were not familiar with the Federal Deposit Insurance Corporation's culture, policies, and procedures; (9) there was not adequate guidance regarding managing and downsizing of thrifts under the conservatorship program; and (10) it was continuing its review of federal investigations of illegal and improper acts that could have contributed to thrift failures.

Oct 6, 2014

Sep 17, 2014

Aug 5, 2014

Jul 31, 2014

Jun 18, 2014

Apr 29, 2014

Apr 7, 2014

Jan 8, 2014

Dec 11, 2013

Looking for more? Browse all our products here