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 ?
8 For effectively addressing RTC mortality burden in the city, it is important to identify its spatial distribution by administrative subdivisions of Karachi.
Meanwhile RTC management has announced that it will regularize all the 3000 odd contract employees if they return to work immediately.
In 1991, motivated by a number of issues, including the RTC's need for interim funding and concerns that its dual board structure was cumbersome and inefficient (for example, the Oversight Board had to approve policies recommended by the RTC/FDIC board), Congress passed the RTC Refinancing, Restructuring, and Improvement Act of 1991 (P.
Terry McStea, an experienced technology marketing specialist at RTC North, said: "RTC offers companies the chance to access a unique blend of industrial and marketing experts under one roof.
Initially, some pundits claimed that software directly accessing the RTC did not exist.
It was the low income generated by the units that led the RTC to consider repudiating the leases, since these officials were interested in maximizing the income on the units on behalf of all Federal taxpayers, who were effectively subsidizing the liquidation of the failed banks' assets.
Out of $43,526 claimed for three months, travel expenses by Cravath, the RTC inspector general disallowed $10,763 and recommended that Cravath's $308,081, 17-month travel claim be subjected to further auditing.
Johnnie Booker, the RTC executive in charge of the program, says joint-venturing became an effective tool, one that allowed smaller firms to pick up experience they would not have received otherwise.
The FDIC will govern the activities formerly subject to RTC regulation, with the following exceptions:
My duties included managing the operations of RTC banks in conservatorship and leading closing teams at failed savings-and-loan institutions.
At the same time that the new RTC was being established, RSA provided temporary funding to establish and develop two model service centers for the provision of comprehensive rehabilitation services to low functioning deaf adults.
The RTC has created a new program to give smaller investors a better shot at buying some of the assets taken over from failed thrifts.