Magazine article American Banker

Agencies' Outline Shows How FDIC Will Swallow RTC

Magazine article American Banker

Agencies' Outline Shows How FDIC Will Swallow RTC

Article excerpt

WASHINGTON -- Plans to fold Resolution Trust Corp. personnel and. operations into the Federal Deposit Insurance Corp. were outlined in a recent memo to the agencies' staffs.

As the thrift industry's clean-up comes to a close, the RTC will be shutting offices around the country, according to the Aug. 8 memo from- acting FDIC chairman Andrew C. Hove Jr. and acting RTC chief executive John E. Ryan

RTC and FDIC employees will not face layoffs before January 1997, according to the Aug. 8 memo.

Employees have expected the moves, and generally found the consolidation plan fair. For most RTC employees, the big questions are, "Where am I going to end up, what am I going to be doing, and who am I going to be working for?" an RTC official said. Many may try their hand at the private sector.

Congress mandated that the RTC stop taking over failed thrifts some time between Jan. 1. and July 1, The Thrift Depositor Protection Oversight Board will decide the exact date, and any failed S&Ls that have not yet been resolved. will then be turned over to the FDIC.

The RTC must shut down entirely by the end of 1995. Any leftover assets from failed S&Ls will be passed to the FDIC, which will continue the process of selling them.

According to the memo, the RTC has begun returning its resolutions staff to the FDIC. The process will be finished by Jan. 31, except for a handful of RTC staffers kept at least through June 30. The same timeframe applies to the agency's conservatorship staffers in field offices outside Washington. …

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