Resolution Trust Corporation

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Resolution Trust Corporation (RTC)

A government agency established in 1989 and disbanded in 1996 that administered federal savings and loan institutions that were insolvent between 1989 and August 1992 by either bailing them out or merging them.

Resolution Trust Corporation

An agency of the United States government that was charged with closing thrifts declared to be insolvent. It also issued bailout bonds and paid for the reorganization and the financing of thrifts that were bankrupt but could still function. It was established by the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and was closed in 1996.

Resolution Trust Corporation (RTC)

A corporation that no longer exists,but had a major impact on U.S. real estate markets. The RTC was formed in the wake of the banking and thrift crisis and bailouts of the mid to late 1980s.As lending institutions were declared insolvent and closed by their various regulatory agencies,the Federal Deposit Insurance Corporation (FDIC) or the Federal Savings and Loan Insurance Corporation (FSLIC,pronounced “fizz-lick”) arranged for payments to depositors and then took over the assets of the failed institutions.The assets could include performing and nonperforming loans, real estate, vehicles, equipment, furniture, and often rare and expensive artwork and accessories.The task of managing and liquidating the assets proved too much, so the government created the RTC to take over those functions.The mandate of the RTC was to liquidate assets, including real estate,as quickly as possible,even if a higher price might be obtained by holding the assets and managing sales over a longer period of time.Billions of dollars of real estate came into the hands of the RTC.The real estate was then sold,often for pennies on the dollar,and as a result many real estate markets were seriously depressed and took years to recover.

References in periodicals archive ?
The congregation acquired the land in June 1993 as part of a $625,000 deal with the Resolution Trust Corp.
Among the first to take advantage of this method on a regular basis were the lenders foreclosing on the over-extended developers of the 1980's and the Resolution Trust Corp.
A few years later, the chairman of the Fed would serve on the board of Resolution Trust Corp.
Standard & Poor's today affirmed its ratings on Resolution Trust Corp.
RCC, the Japanese version of Resolution Trust Corp.
The KPERS lawsuit sought more than $100 million in alleged investment losses from the auditing firm, including a $65 million investment in 1986 in Home Savings & Loan Association, a thrift in Kansas City, Missouri, taken over by the Resolution Trust Corp.
After acquiring assets and assuming deposits of the failed Founders Federal Savings and Loan Association from the Resolution Trust Corp.
The bank failed and was taken over by the Resolution Trust Corp.
The property was acquired for $250,000 in September 1990 from the Resolution Trust Corp.
Consequently, due to excess credit support levels, the trust approved the release of $55 million to Resolution Trust Corp.
has purchased properties from the Resolution Trust Corp.
KPMG will pay $128 million in cash to the Resolution Trust Corp.