Summary: GAO testified that the Resolution Trust Corporation (RTC) continued its progress in resolving thrifts during 1991, but economic conditions and funding disruptions hampered RTC's scheduling and marketing efforts and contributed to RTC's resolving only 232 thrifts instead of the planned 268. To complete the resolution of an additional 150 to 300 failed thrifts, RTC will need more funds. RTC cannot, however, accurately predict the full cost of future resolutions. To meet RTC's future funding needs, GAO believes that Congress should eliminate the April 1, 1992, obligations deadline placed on the $25 billion authorized in December 1991. Congress should ask RTC to estimate its loss fund needs through the spring of 1993 and should provide RTC with enough funds on a timely basis to carry out its responsibilities during this period. RTC is quickly approaching the point when its inventory will consist mostly of hard-to-sell financial and real estate assets. Thus, it is becoming increasingly important that RTC have not only an aggressive and well-managed disposition program, but also systems and controls to ensure that its assets are protected, transactions properly executed and recorded, and operations conducted in accordance with established policies and procedures. While encouraged that the new chief executive officer (CEO) has begun a series of management projects to review and improve RTC's major programs, GAO is disappointed and concerned about RTC's progress in some areas, such as information system development and contracting oversight. These issues present the new CEO with management challenges that must be promptly addressed if RTC is to assure Congress and the taxpayers that the thrift cleanup is being handled efficiently and effectively.
