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.
The RTC's Washington conservatorship staff will return to the FDIC after Jan. 31. The agencies will try to avoid relocating employees with the transfers, according to the memo.
Most functions of the RTC's giant Denver asset sales office will be shuttered, with its workload divided between its California office and its Dallas office by the end of March. The Kansas City RTC office will transfer most of its workload to the FDIC's Chicago office by the end of June.
By the end of next month, a transition task force will decide when the Denver and Kansas City RTC offices' legal, investigative, and other staffers will transfer to the FDIC.
The RTC's Valley Forge, Pa., Atlanta, Dallas, and California offices will stay open until the end of 1995. But by the end of September 1995, the offices will be administratively integrated into the FDIC's Hartford, Atlanta, Dallas, and Irvine, Calif., offices, respectively.
In Washington, most RTC legal and asset management and sales work will continue through the end of 1995. No later than September 1995, those functions will be administratively merged with the FDIC's Washington office, according to the memo. The RTC was formed in August 1989 by the thrift bailout law. Most of the RTC staff was created then with government employees detailed from the FDIC, with the understanding they would return to the FDIC when the new agency shut down.