Contracting Problems At the Resolution Trust Corporation Homefed Hearing Bef
Contracting Problems At the Resolution Trust Corporation Homefed Hearing Bef
United States Congress Senate Committee On Gove
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Two days later (May 15), RTC learned that HomeFed's asset files were under a Department of Justice subpoena. Documentation supports that RTC did not learn 2 Due diligence involves data collection to prepare investor files, property inspection, market analysis, cash flow analysis, asset valuation, and preparation of asset pools. Potential investors use the information collected and analyzed during the due diligence process to tissist in their determination of a bid price for the assets. 60 of th...e subpoena until May 15. It is disturbing to note that OTS and others had much earher knowledge of the subpoena, but RTC was not aware of its existence until this time. OTS knew of the subpoena on January 17, 1992, the day it was served on HomeFed. The subpoena drastically limited access to original HomeFed files, thus necessitating some increase in controls over the files. On June 12, 1992, RTC determined that because of a lack of funding, HomeFed could not be resolved under the modified ARP. Two days later, in light of Depart- ment of Justice demands, Price Waterhouse issued document control procedures de- signed to track and document the movement of asset files.
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