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Thrift Failures: Actions Needed to Stabilize RTC's Professional Liability Program

GGD-93-105 Published: Jun 28, 1993. Publicly Released: Jul 19, 1993.
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Highlights

Pursuant to a congressional request, GAO provided information on: (1) various management changes to the Resolution Trust Corporation's (RTC) Professional Liability Section (PLS) program; (2) PLS staffing and the filing and disposition of PLS cases; and (3) actions RTC needs to take to maintain the PLS program as its functions are transferred to the Federal Deposit Insurance Corporation (FDIC).

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Resolution Trust Corporation To ensure a strong PLS program and to help smooth the transition of PLS work to FDIC, the President and Chief Executive Officer, RTC, should work with the Chairman, FDIC, to analyze and address the agencies' current and future operational and staffing needs of the PLS program. This analysis should consider various staffing options and organizational structures, taking into account both agencies' current and future professional liability requirements. A key goal of this analysis should be the stabilization of the RTC professional liability program both currently and in the future as it is merged with the FDIC PLS program. The Chief Executive Officer, RTC, should take these factors into consideration when reviewing and recommending improvements to PLS organization and staffing, as he was requested to by the Secretary of the Treasury.
Closed – Not Implemented
RTC was closed on December 31, 1995.
Resolution Trust Corporation Regardless of what actions are taken, the Chief Executive Officer and President, RTC, should keep the PLS attorneys informed of the agencies' plans and decisions concerning PLS to help decrease the level of uncertainty surrounding the program.
Closed – Not Implemented
RTC was closed on December 31, 1995.

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