Obligations Limitation: Resolution Trust Corporation's Compliance as of September 30, 1990
AFMD-91-63
Published: May 31, 1991. Publicly Released: Jul 01, 1991.
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Highlights
Pursuant to a congressional request, GAO assessed the Resolution Trust Corporation's (RTC) third-quarter compliance with the maximum RTC obligation limit set forth by the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989, which provided a formula calculating maximum allowable obligations.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should consider reestablishing a cash reserve feature by amending FIRREA to recognize all funding sources in the obligations limitation formula. |
Closed – Not Implemented
|
Congress did not amend FIRREA to fix or eliminate the formula in funding bills passed in March and December, 1991. RTC is requesting additional funding to carry it through to April 1993. Congress could amend FIRREA in conjunction with that request, but such action is not included in the funding bill. |
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Appropriation limitationsBank failuresBudget obligationsFederal corporationsFinancial managementInsured commercial banksReporting requirementsSavings and loan associationsStatistical methodsWarranties