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 ?
1967) (describing clear principle of complete domination requires plaintiff to show board's full domination); Resolution Trust Corp. v.
The result is a short period of weak consumer spending growth, perhaps a negative GDP number for Q4 2007.Traditional Recession: Much like 1990-91 with a Resolution Trust Corp set up to help homeowners stay in their homes and banks get their balance sheets back in place.
Refusing to declare bankruptcy, he eventually settled his debts with the Resolution Trust Corp., which had been set up to handle the assets of failed thrifts.
Thankfully, not long after the developer pulled out, Bank of America purchased the loan from the Resolution Trust Corp. and began searching for a new builder to complete the project.
A few years later, the chairman of the Fed would serve on the board of Resolution Trust Corp., the company charged with cleaning up the thrift's mess.
30 Kyodo The ruling Liberal Democratic Party (LDP) and the opposition should consider giving wide-ranging powers to a planned Japanese version of the Resolution Trust Corp. (RTC) of the United States, a top government spokesman said Wednesday.
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. (RTC) in 1991.
Resolution Trust Corp., an impenetrable bankruptcy case).
FDIC(4) and the demise of the Resolution Trust Corp. in December 1995, that nightmare for borrowers appears to be over.
The March 18 Nation article revealed that as late as January of this year, Starr's law firm, Kirkland & Ellis, was being sued by the Resolution Trust Corp., the government agency charged with cleaning up the S&L debacle and a key player in Whitewater.
Resolution Trust Corp.(99) however, the Maryland Court of Appeals adopted what it termed "the disinterested majority" test.(100) Under this rationale, the burden of production falls on the plaintiff to show that a majority of the board is culpable.(101) Once this has been shown, the burden shifts to the defendant, who presumably has better access to information,(102) to prove that someone on the board was willing and able to bring suit.(103) Contrary to the views of some,(104) the allocation of the burden of proof does not turn on whether adverse domination is seen as a tolling or an accrual doctrine.(105) The resolution of the burden of proof issue is of key importance because courts need to know how to apply the adverse domination doctrine.
To entice potential buyers, the Resolution Trust Corp.--the federal agency that receives bankrupt S&Ls and sells off or rehabilitates their assets--threw into the deal the rights to expand into three states, one of which was Hawaii.