The FDIC has resumed its auction program under a new set of
interim procedures designed to prevent the type of
irregularities that occurred under the Resolution Trust
The FDIC suspended the program on April 10, after uncovering
irregularities involving the payment of expenses in some RTC
auctions. In addition to launching a comprehensive review of the
auctions, the FDIC referred its findings to the Office of the
The interim auction procedures will not replace existing
FDIC policies on procurement and management oversight, but will
supplement those policies to ensure that adequate controls are in
place with respect to payments for expenses in connection with
future auctions for Owned Real Estate; Furniture, Fixtures and
Equipment; Loans; and Foreclosures.
The agency intends to issue final auction procedures by July
The RTC was established in 1989 to oversee the resolution of
failed thrifts. It was merged into the FDIC on January 1, 1996.
Congress created the Federal Deposit Insurance Corporation in
1933 to restore public confidence in the nation's banking system.
The FDIC insures deposits at the nation's 12,000 banks and
savings associations and it promotes the safety and soundness of
these institutions by identifying, monitoring and addressing
risks to which they are exposed.
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FDIC press releases and other documents are available on the
Internet via the World Wide Web at www.fdic.gov or through Gopher
at gopher.fdic.gov. They may also be obtained through the FDIC's
Public Information Center, 801 17th St. NW, Room 100, Washington,
DC, ((703) 562-2200).