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 ?
CO: Banc One Corporation; Resolution Trust Corporation ST: Ohio IN:
has placed Resolution Trust Corporation, multifamily mortgage pass-through certificates, Series 1991-M3, Classes A, B and X, on Rating Watch--Down.
6 billion, more than offsetting a $500 million loss registered by 50 thrifts still under control of the Resolution Trust Corporation.
The Resolution Trust Corporation won the right in court to make failed cooperatives viable through rent deregulation of the properties it takes over.
The 457 technically insolvent thrifts (197 under Resolution Trust Corporation control) lost $1.
and BOSTON, July 18 /PRNewswire/ -- Shawmut National Corporation (NYSE: SNC) today announced that the Resolution Trust Corporation has accepted its bid, through its newly formed subsidiary Shawmut Bank, FSB, to purchase The Guardian Bank, FSB, of Boca Raton, Florida, for $3.
The firm gained its reputation performing for the Resolution Trust Corporation and FDIC and has continued to work with its clients to sort out complex financial and valuation issues.
The boards of directors of the Resolution Trust Corporation (RTC), the agency created to oversee the bailout of failed savings and loans, and the Federal Deposit Insurance Corporation (FDIC) adopted a statement on their contract policies with CPA firms facing litigation brought by the FDIC.
There, they led the Bank's real estate workout groups until the early 1990s, when they began the Bank's efforts in acquiring commercial mortgaged backed securities and in acquiring or lending upon sub-performing and non-performing debt portfolios of the Resolution Trust Corporation and troubled real estate lending institutions.