Resolution Trust Corporation:
Management Improvements Reduce Risks But Transition Challenges Remain
T-GGD-95-188: Published: Jun 20, 1995. Publicly Released: Jun 20, 1995.
Pursuant to a congressional request, GAO discussed the Resolution Trust Corporation's (RTC) performance and the transition of its responsibilities to the Federal Deposit Insurance Corporation (FDIC). GAO noted that: (1) RTC has implemented most of the management reforms mandated by Congress regarding its marketing, asset disposition, contracting activities, internal accounting controls, and information systems, but several weaknesses remain; (2) RTC and FDIC have established an interagency task force to help manage the transition; (3) the task force has designed a reasonable transition process, which includes involving top management, best practices reviews, information systems reviews, and identifying a staffing and organizational structure for RTC functions after the transition; (4) RTC has transferred 900 staff to FDIC and has closed asset operations in one regional office and plans to close asset operations in another regional office in the near future; (5) transition planning is at a critical phase and major issues remain regarding best practices, information systems reviews, and the merger of RTC functions and staff; and (6) RTC has disposed of its remaining failed thrifts and reduced its assets available for sale, which has reduced the risk associated with the transition.