Failed Thrifts' Assets:

RTC's Oversight of 1988 Deals Needs Improvement

GGD-91-116: Published: Aug 21, 1991. Publicly Released: Aug 21, 1991.

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GAO assessed the Federal Savings and Loan Insurance Corporation's (FSLIC) oversight of the asset disposition plans submitted by institutions that acquired failed thrifts in fiscal year (FY) 1988 under financial assistance agreements.

GAO found that: (1) FSLIC adhered to available guidance in approving or rejecting the asset disposition plans; (2) the 92 approved plans provided information on the history and condition of the assets and appraisals, and adequate support for the proposed asset dispositions and rejection of the alternative plans; (3) integrated systems for determining if the assisted thrifts submitted asset disposition plans as required and implemented approved plans were not in place; (4) the Federal Deposit Insurance Corporation established a task force to develop and implement integrated management information systems by March 31, 1991; and (5) the Resolution Trust Corporation did not meet the implementation goal primarily because it could not reconcile the original inventory of covered assets, the asset dispositions, and the present inventory of covered assets.