Bank and Thrift Failures: RTC Needs to Improve Planning for Professional Liability Staff Changes

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.