Resolution Trust Corporation


Also found in: Dictionary, Thesaurus, Legal, Financial, Acronyms, Wikipedia.

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.
..... Click the link for more information.
 (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.
The Columbia Electronic Encyclopedia™ Copyright © 2013, Columbia University Press. Licensed from Columbia University Press. All rights reserved. www.cc.columbia.edu/cu/cup/
References in periodicals archive ?
575-619 in Oversight Hearings on the Resolution Trust Corporation, Committee on Banking, Finance, and Urban Affairs, U.S.
But Starr's conflict of interest in a suit against his law partnership by the Resolution Trust Corporation, involving some of the same R.T.C.
Rubin, secretary of the Treasury and chairman of the Thrift Depositor Protection Oversight Board, told the Senate Committee on Banking, Housing and Urban Affairs that the Resolution Trust Corporation (RTC), created by Congress to sell the assets and pay off depositors of failed thrifts, could close entirely in December 1995, one year earlier than initially anticipated.
Created to clean up the S&L debacle, it stipulated that minority and female professionals must receive Resolution Trust Corporation contract opportunities.
In addition, outlays for the thrift bailout peaked at $66.1 billion in 1991 and then abruptly changed direction when the Resolution Trust Corporation, the government agency charged with cleaning up the mess, sold S&L assets.
Instead, Estrella became the sole property in Pool #3 of the Resolution Trust Corporation's national land fund, a label for a 1993 sale of more than 400 properties acquired from failed thrifts.
The IRS has unofficially indicated that individuals may be able to roll over individual retirement account (IRA) distributions received from the Resolution Trust Corporation (RTC) that were previously rolled over within the past year without violating Sec.
In a separate action, the Resolution Trust Corporation, the federal agency in charge of the S & L bailout, last week announced it would clarify its policy with regard to the payment of special taxes and assessment taxes on property to cities and towns.
We believe that the private sector of the savings and loan industry will continue to show a profit in future quarters and that such profit will grow, assuming that the Resolution Trust Corporation continues to bury the dead (some say "shoot the wounded"), that interest rates behave, and that the economy does not slide back into recession.
"The RTC has renamed itself the FDIC," said William Rudin, chief executive of Rudin Management and another participant on the panel, referring to the Resolution Trust Corporation, which liquidated assets taken by the government during the savings and loan crisis in the early 1990s.
"Unlike the 1990s, when the formation of the Resolution Trust Corporation [RTC] forced the sale of bad assets and quickly set market-clearing price levels, there are very few deals happening today other than one-off distressed sales; the government's PPIP [Public-Private Investment Program] initiative has largely fallen on deaf ears; sellers are weighing their options; and a broad spectrum of buyers is simply waiting for the dam to burst and unleash a highly anticipated wave of deals."
During the Bush Administration, the Resolution Trust Corporation spent 13 hours investigating First Federal, whose bailout cost taxpayers $833 million.