Resolution Trust Corporation


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Resolution Trust Corporation

(RTC), in U.S. history, government-owned company formed in 1989 to liquidate the assets of insolvent savings and loan associationssavings and loan association
(S&L), type of financial institution that was originally created to accept savings from private investors and to provide home mortgage services for the public.

The first U.S. S&L was founded in 1831.
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 (S&Ls). Essentially a huge property-management company operated as an agent of the federal government, the RTC had as its primary mission the disposal (at maximum value) of office buildings, homes, loans, and other assets that were held by bankrupt thrifts in order to reduce taxpayer costs associated with the S&L bailout. Hundreds of S&Ls, which had taken advantage of lax regulations and invested in high-risk real estate and other imprudent assets, failed in the 1980s, and after the Federal Savings and Loan Insurance Corporation itself became insolvent and the Federal Deposit Insurance Corporation assumed its responsibilites, the RTC was created. By the time the RTC was dissolved in 1995, it had closed or reorganized 747 institutions and managed to sell off some $400 billion in assets. The eventual cost to the taxpayers was approximately $130 billion, well below original estimates.
References in periodicals archive ?
Certainly owners are cutting costs and conserving capital as things have slowed, but no one has talked of resurrecting the Resolution Trust Corporation.
The decline was caused by a more than $700 million loss incurred by the 81 thrifts under Resolution Trust Corporation control.
At least four S&L-owned skyboxes have fallen into the hands of the Resolution Trust Corporation in the past two years.
Second-quarter call data for the nation's 2,089 privately owned savings and loan institutions and those controlled by the Resolution Trust Corporation showed a continued improvement in their financial condition.
In the process, about $90 billion of thrfft assets have been taken onto the books of the Resolution Trust Corporation, where they are funded by government securities instead of depository liabilities.
Assigned to sell off and liquidate thrifts, the Resolution Trust Corporation (RTC) has acknowledged that it has allowed some of the thrifts' former executives to continue to draw six-figure salaries from the government, even though they are no longer working full time for the institutions and may be responsible for their demise.
Today's opportunistic real estate private equity fund sector has its roots in the aftermath of the sell-off of failed loans and other assets by the Resolution Trust Corporation in the late 1980s and early 1990s.
6 billion, more than offsetting a $500 million loss registered by 50 thrifts still under control of the Resolution Trust Corporation.
Indeed, most of the relatively small number of securitizations of commercial real estate loans that have been done so far, until the recent offerings of the Resolution Trust Corporation (RTC), have been privately placed, and there has been no active secondary market for any securities that are backed by commercial real estate loans.