Investopedia

Continue to Site »

Resolution Funding Corporation - REFCORP

Filed Under » , ,
Dictionary Says

Definition of 'Resolution Funding Corporation - REFCORP'

A mixed-ownership government corporation established by Congress in 1989 in conjunction with the Resolution Trust Corporation (RTC). The two corporations were established to rescue savings and loan (S&L) institutions that failed during the savings and loan crisis. REFCORP provided liquidity to these organizations by issuing bonds.
Investopedia Says

Investopedia explains 'Resolution Funding Corporation - REFCORP'

The S&L crisis began in the late 1970s and lasted through the early 1990s. S&Ls engaged in risky activities, such as commercial real estate lending and investing in junk bonds, because their deposits were insured by the Federal Savings and Loan Insurance Corporation (FSLIC). The FSLIC eventually became insolvent, and the government spent over $124 billion in taxpayer dollars and liquidated 747 insolvent S&Ls to end the crisis.

Articles Of Interest

  1.

    Bailout Acronyms 101

    The subprime meltdown gave rise to a mouthful of financial acronyms. Learn how to sort through this alphabet soup.

  2. From Booms To Bailouts: The Banking Crisis Of The 1980s

    The economic environment of the late 1970s and early 1980s created the perfect storm for a banking crisis.

  3. Top 6 U.S. Government Financial Bailouts

    U.S. bailouts date all the way back to 1792. Learn how the biggest ones affected the economy.

  4. The Government And Risk: A Love-Hate Relationship

    Though the U.S. government can help its citizens by subsidizing risky loans, the costs always come back to the taxpayers.

  5. Chrysler And The 1979 Bailout

    This American icon almost went under, but the U.S. government refused to let it fail.

  6. The 2007-08 Financial Crisis In Review

    If you don't know how the recession began, read on to learn more.

  7. What's On A Consumer Credit Report?

    A look at the various components and considerations that go into one's credit report and credit score.

  8. Other Options For The Cyprus Bailout

    Find out the other options Cyprus could use to resolve it's financial troubles, since its proposal to tax bank deposits didn't work out.

  9. The Cyprus Crisis 101

    Discover what's behind the Cyprus debacle and what investors should do about the situation.

  10. A Guide To Debt Settlement

    Find out how you can negotiate your way to a lower debt load by paying up front.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  2. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  3. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  4. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  5. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  6. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
Trading Center