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 ?
Instead of buying in New York, they bought at Resolution Trust Corporation sales, and from banks and insurance companies.
For example, the EPA regulations do not expressly address the warranties that governmental entities are required to make under CERCLA, and the ability of the EPA to provide a broad exclusion from the warranty provisions for governmental entities such as the FDIC or the Resolution Trust Corporation is unclear.
In 1989, he was appointed President and CEO of the Federal Asset Disposition Corporation (FADA), the predecessor of the current Resolution Trust Corporation.
The now defunct Resolution Trust Corporation (RTC) acquired the units in 444 East 57th Street in the late 1980's after banks failed that had taken the units back from sponsors who had defaulted on their loan obligations.
Much of the decrease related to the shrinkage of savings and loan associations: Marginal institutions continued to retrench, and the Resolution Trust Corporation (RTC) transferred large volumes of assets to banks and onto its own books in the course of closing failed thrift institutions.
Fidelity began acquiring non-performing and sub-performing loans and real estate directly from the Resolution Trust Corporation and lending institutions in the early 1990s.
As the Resolution Trust Corporation prepared billions of dollars of assets for bulk sale in the ensuing few years, there were "opportunity funds" that purchased deeply discounted mortgages and properties, some of which proved to be huge bargains.
Outlays were boosted at the end of the fiscal year by the initial $9 billion of spending by the Resolution Trust Corporation.
Manogue, a former executive with the Resolution Trust Corporation who has been appointed HRPOCA's first Executive Director.
This function would be assigned to a newly created Resolution Trust Corporation (RTC), which would be managed by the FDIC and operate under the direction of the Oversight Board composed of the Secretary of the Treasury, the Chairman of the Federal Reserve Board, and the Attorney General.
The Japanese Parliament, the Diet, soon enacted bills to create the Japanese Resolution Trust Corporation (JRTC) and the Housing Loan Asset Management Institute that will resolve the real estate portfolios of failed credit cooperatives and jusen, the housing loan companies.