RTC Management Letter
AIMD-96-135R: Published: Jul 29, 1996. Publicly Released: Jul 29, 1996.
Additional Materials:
- Full Report:
Contact:
GAO provided information on data problems identified during its audit of the Resolution Trust Corporation's (RTC) 1995 financial statements. GAO noted that: (1) the Federal Deposit Insurance Corporation (FDIC) did not properly value its estimated recoveries on RTC receivership securities because it failed to consider changes in the RTC securities portfolio between December 1994 and December 1995; (2) FDIC needs to ensure that receivership securities are properly valued based on current information; (3) the representation and warranty contract database included nonguaranteed contracts with expired indemnification periods, which resulted in the possible overstatement of the estimated costs for representations and warranties; (4) FDIC needs to identify contracts with expired or soon-to-expire indemnification periods and exclude these contracts from the representation and warranty cost estimate; (5) RTC used data for calculating estimates of future recoveries of securitization reserves that was not verified by an independent review; (6) some formulas used to calculate the estimate were incorrectly updated; and (7) because these errors increase the risk that future errors will not be timely identified and corrected, FDIC needs to review the data verification process to ensure that it includes recomputation of data input formulas when appropriate and verification of data used to calculate inputs to the formulas.
Dec 16, 2020
Financial Stability:
Agencies Have Not Found Leveraged Lending to Significantly Threaten Stability but Remain Cautious Amid PandemicGAO-21-167: Published: Dec 16, 2020. Publicly Released: Dec 16, 2020.
Dec 10, 2020
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Federal Reserve Lending Programs:
Use of CARES Act-Supported Programs Has Been Limited and Flow of Credit Has Generally ImprovedGAO-21-180: Published: Dec 10, 2020. Publicly Released: Dec 10, 2020. -
Financial Assistance:
Lessons Learned from CARES Act Loan Program for Aviation and Other Eligible BusinessesGAO-21-198: Published: Dec 10, 2020. Publicly Released: Dec 10, 2020.
Sep 22, 2020
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Anti-Money Laundering:
Opportunities Exist to Increase Law Enforcement Use of Bank Secrecy Act Reports, and Banks' Costs to Comply with the Act VariedGAO-20-574: Published: Sep 22, 2020. Publicly Released: Sep 22, 2020.
Sep 4, 2020
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Bank Supervision:
FDIC Could Better Address Regulatory Capture RisksGAO-20-519: Published: Sep 4, 2020. Publicly Released: Sep 4, 2020.
Jul 21, 2020
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Financial Company Bankruptcies:
Congress and Regulators Have Updated Resolution Planning RequirementsGAO-20-608R: Published: Jul 21, 2020. Publicly Released: Jul 21, 2020.
Jul 6, 2020
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Public Companies:
Disclosure of Environmental, Social, and Governance Factors and Options to Enhance ThemGAO-20-530: Published: Jul 2, 2020. Publicly Released: Jul 6, 2020.
Apr 30, 2020
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Priority Open Recommendations:
Department of the TreasuryGAO-20-549PR: Published: Apr 23, 2020. Publicly Released: Apr 30, 2020.
Apr 27, 2020
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Priority Open Recommendations:
Board of Governors of the Federal Reserve SystemGAO-20-499PR: Published: Apr 20, 2020. Publicly Released: Apr 27, 2020. -
Priority Open Recommendations:
Federal Deposit Insurance CorporationGAO-20-498PR: Published: Apr 20, 2020. Publicly Released: Apr 27, 2020.
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