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 ?
For example, a resumption of resolutions by the Resolution Trust Corporation, which has been inactive for nearly a year, by shifting assets from thrift institutions onto government balance sheets, would tend to substitute federal liabilities for those of thrift institutions, reducing monetary growth.
On the national front, city officials will take great interest in concurrent workshops dealing with hot topics like ways to comply with the Americans with Disabilities Act, and how cities work with the Resolution Trust Corporation to create opportunities for local government.
Days after the war ended, the House Banking Committee began consideration of a bill authorizing the Resolution Trust Corporation, which oversees the S&L cleanup, to borrow $30 billion for fiscal 1991.
The S&L "bail-out" legislation requires adequate capital levels or the institution will be merged or taken over by the Resolution Trust Corporation.
While auctions have been utilized regularly for unique luxury properties, farm and ranch land, fine art and collector automobiles, their use in commercial real estate transactions waned following the Resolution Trust Corporation (RTC) disposition market of the late 1980s and early 1990s.
The Navigant study, Subprime Mortgages and Related Litigation: 2007--Looking Back at What's Ahead, noted that the number of subprime-related cases filed in 2007 already equals half of the total 559 S & L cases handled by the Resolution Trust Corporation (RTC) over a multiple-year period.
The Resolution Trust Corporation spent an additional $3.6 million for the Pillsbury Madison & Sutro report.
However, the 85 failed thrifts operated by the resolution Trust Corporation (RTC) had $638 million in net losses for the quarter, bringing federally controlled thrifts' total losses to $3.6 billion since Congress stopped funding the sale of failed thrifts operated by the RTC.
Endeavors by both the Resolution Trust Corporation and private parties to encourage the development of a secondary market in commercial mortgages will help liquify the market in commercial real estate itself.
The Resolution Trust Corporation will inevitably get scammed," charges Stephen Pizzo, co-author of Inside Job: The Looting of America's Savings and Loans.
He spent 12 years managing the lending departments at two New York City Money Center Banks, and 3 years as managing director of a consulting firm retained by both the Resolution Trust Corporation and the Whitehall Fund in the disposition of distressed real estate.
That was the primary function of the Resolution Trust Corporation (RTC) in the United States, and it is the stipulated goal of the most successful asset management companies (AMCs) in Asia--most notably Korea's KAMCO and Thailand's Financial Sector Restructuring Authority (FRA).