2 Named as Panel For Correcting RTC Problems

WASHINGTON - John Robson, deputy Treasury secretary, and Alfred DelliBovi, under secretary of Housing and Urban Development, have been appointed to a working group aimed at correcting management problems within the Resolution Trust Corp.

A spokesman for the RTC Oversight Board, which formed the two-member panel, said it will review various areas of management and controls within the RTC, and work closely with the General Accounting Office and the RTC Inspector General to correct the problems.

The oversight board is made up of private business people and Treasury Secretary Nicholas Brady, Federal Reserve Chairman Alan Greenspan, and Housing Secretary Jack Kemp.

Potential Embarrassment

The RTC could be a political embarrassment for the Bush administration. It is spending more money than expected for the thrift bailout while accomplishing less than it promised to deliver.

Comptroller General Charles A. Bowsher is expected to testify today before the Senate Banking Committee on the RTC's continuing problems. In a recent audit of the RTC, the General Accounting Office criticized the agency for not having an adequate information system for identifying assets in receivership, and being unable to adequately track the disposition of assets.

Mr. DelliBovi said he and Mr. Robson had already begun to look at some of the deficiencies at the RTC, but he played down their magnitude. "The task here is nothing compared to the one Jack Kemp and I faced when we came to HUD," he said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.