Bank and Thrift Failures:
RTC Needs to Improve Planning for Professional Liability Staff Changes
T-GGD-92-69: Published: Aug 11, 1992. Publicly Released: Aug 11, 1992.
- Full Report:
GAO discussed the Resolution Trust Corporation's (RTC) attorney staffing for its Professional Liability Program, focusing on the effect of assignment changes on attorney responsibilities. GAO noted that: (1) staffing shortages and changes have led to program disruptions; (2) the program employs 70 attorneys, which is about half of the number needed; 40 percent of RTC professional liability attorneys have left or been reassigned, including 5 of 7 senior officials; (3) due to the RTC merger with the Federal Deposit Insurance Corporation (FDIC), professional liability staff have been reduced or reorganized, causing program disruptions, staff anxiety, and demoralization; (4) expanding attorney work loads and statutes of limitation make staffing disruptions costly; and (5) effective management and communication is needed to provide a better transfer of RTC staff to FDIC to ensure minimum disruptions to the program.