Resolution Trust Corporation: Structure and Oversight Issues

GAO discussed issues related to the structure and oversight of the Resolution Trust Corporation (RTC), focusing on whether: (1) the standard structure and oversight of executive agencies would better facilitate attaining RTC accountability and least-cost goals; (2) standard Office of Management and Budget (OMB) oversight of federal agency activities would be sufficient for RTC activities; (3) certain statutes and regulations were applicable to a restructured RTC; and (4) restructuring RTC as an executive agency would leave any unresolved questions about the statutes and regulations that apply to it. GAO found that: (1) there is nothing inherent in the current RTC structure that prevents the exercise of sound oversight; (2) restructuring RTC as an executive agency may streamline decisionmaking and reduce the independence of the oversight board; (3) independent oversight of RTC operations is essential due to its unique and complex mission; (4) it is not clear what additional expertise OMB could offer to achieve better oversight of RTC or what benefits could accrue from greater OMB involvement; (5) a restructured RTC would observe laws that apply to executive agencies and be subject to requirements concerning environmental and contracting matters; (6) subjecting RTC to federal contracting statutes may have some public benefit, but could greatly retard its asset disposition efforts; and (7) the installation of such federal pay and personnel rules as the removal of exempt status to a restructured RTC may cause employees to leave, resulting in a disruption in RTC activities.