Summary: During the past year, the Resolution Trust Corporation's (RTC) professional liability program has been embroiled in controversy over its pursuit of civil claims against professionals responsible for losses at failed thrifts. Although GAO found no indication that RTC management sought to undermine the professional liability work, some risk exists that either inadequate staffing or staff inexperience at the agency could jeopardize the development of future claims. It is essential that top RTC management restore some sense of stability to the professional liability staff and continue its efforts to increase the professional liability staff to its authorized strength. Because RTC is a temporary agency, hiring and retaining attorneys in the professional liability program will be difficult. Under current law, however, the Federal Deposit Insurance Corporation (FDIC) will assume some responsibility for the professional liability program when RTC is dissolved. Therefore, RTC and FDIC need to work together to explore ways to ensure that RTC maintains a viable professional liability program and that the transfer to FDIC is smooth.
