Asset Management System: Liquidation of Failed Bank Assets Not Adequately Supported by FDIC System
IMTEC-93-8
Published: Feb 03, 1993. Publicly Released: Feb 03, 1993.
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Highlights
Pursuant to a congressional request, GAO reviewed the Federal Deposit Insurance Corporation's (FDIC) Division of Liquidation's operating requirements, focusing on whether: (1) FDIC was following asset management requirements at three regional offices; and (2) the Liquidation Asset Management Information System (LAMIS) and manual asset files are providing sufficient activity administration and oversight information.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Deposit Insurance Corporation | To ensure that automated systems adequately support the Division of Liquidation's operational requirements for managing loan and real estate assets, as part of the FDIC effort to strengthen strategic business and information resources management plans, the Acting Chairman, FDIC, should establish a systems design process that will effectively address asset liquidation needs. Such a process must include identifying, prioritizing, and translating the Division of Liquidation's operational requirements into effective automated systems. | In March 1996, FDIC began implementing an eight-step system development life-cycle methodology. In 1997, FDIC then issued a systems development life-cycle methodology directive that requires all systems projects to follow this methodology. In regard to the Division of Liquidation, FDIC initiated a project in 1994 to identify its information needs and translate them into an information system that would support asset management and disposition. However, FDIC management raised concerns about the project's cost-effectiveness and a scaled-back project was subsequently developed. In December 1996, FDIC management approved a project to strategically address its information needs for asset... liquidation. Although FDIC maintains that it plans to complete this project, little progress has been made to date. As a result, given the length of time since our recommendation and the lack of progress, it appears unlikely that this part of the recommendation will be implemented.
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AssetsBank failuresDebt collectionDelinquent loansForeclosuresInternal controlsManagement information systemsReal propertyAsset managementFederal deposit insurance