Resolution Trust Corporation

(redirected from Resolution Trust Corp)
Also found in: Encyclopedia.

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 ?
Finally, the Houston Chronicle broke new ground in access technique when it bought confidential loan files from a belly-up S & L at a Resolution Trust Corp.
When healthy organizations buy a failed thrift from the Resolution Trust Corp.
The roots of First State Bank date back to July 1991 when the Resolution Trust Corp.
Blackstone Group, Goldman Sachs and Morgan Stanley, and with several government agencies, including the US Resolution Trust Corp.
I haven't heard many ideas for this side of the dilemma other than establishing something similar to the Resolution Trust Corp.
Treasury Secretary Henry Paulson is considering creating an entity like 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.
KPMG will pay $128 million in cash to the Resolution Trust Corp.
Buyers waiting for a government-sponsored clearinghouse such as the Resolution Trust Corp.
Media reports said the entity is expected to be modeled after the Resolution Trust Corp.
1 billion commercial mortgage-backed deal for the former Resolution Trust Corp.