FDIC: Liquidation of Failed Bank Assets at Risk Due to Inadequate Manual
and Automated Processes (Testimony, 11/09/93, GAO/T-AIMD-94-56).

In an August 1991 report (GAO/IMTEC-91-61), GAO noted the absence of
basic internal controls at the Federal Deposit Insurance Corporation
(FDIC) to ensure that manual and computerized files accurately reflected
the status of assets at FDIC's Denver office. As a result, assets were
grossly overvalued and cash receipts were unaccounted for.  In a
February 1993 report (GAO/IMTEC-93-8), GAO found that FDIC had failed to
maximize cash recovery on failed bank assets because of weaknesses in
its manual and automated asset management processes.  For example, FDIC
had not collected from delinquent borrowers $1.4 million generated by
collateral on the borrowers' loans.  This testimony discusses the
findings and conclusions of these two reports in greater detail.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-AIMD-94-56
     TITLE:  FDIC: Liquidation of Failed Bank Assets at Risk Due to 
             Inadequate Manual and Automated Processes
      DATE:  11/09/93
   SUBJECT:  Assets
             Records management
             Bank failures
             Foreclosures
             Computerized information systems
             Loan accounting systems
             Management information systems
             Systems design
             Debt collection
             Information processing operations
IDENTIFIER:  FDIC Liquidation Asset Management Information System
             
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