Resolution Trust Corporation - RTC

AAA

DEFINITION of 'Resolution Trust Corporation - RTC'

A temporary federal agency established under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), enacted on Aug. 9, 1989, to resolve the savings and loan (S&L) crisis of the 1980s.


The Resolution Trust Corporation (RTC) had a mission to resolve all thrifts placed under conservatorship or receivership between Jan. 1, 1989, and Aug. 8, 1992. The S&L or thrift industry crisis had resulted in the biggest collapse of U.S. financial institutions since the 1930s. The RTC accomplished its mission by closing, selling or merging troubled thrifts and disposing of assets in an expeditious manner.

INVESTOPEDIA EXPLAINS 'Resolution Trust Corporation - RTC'

By mid-1995, the RTC had resolved 747 thrifts, with total assets of $394 billion. The RTC's authorization to take over thrifts was extended twice, because of the magnitude of the S&L crisis. The RTC ceased operations on Dec. 31, 1995.

RELATED TERMS
  1. Thrift

    Thrifts are savings and loans associations. Thrifts also refer ...
  2. Resolution Funding Corporation ...

    A mixed-ownership government corporation established by Congress ...
  3. Federal Deposit Insurance Corporation ...

    The U.S. corporation insuring deposits in the U.S. against bank ...
  4. Bailout

    A situation in which a business, individual or government offers ...
  5. Savings And Loan Crisis - S&L

    One of the largest financial scandals in U.S. history, the Savings ...
  6. Estimated Recovery Value (ERV)

    The projected value of an asset that can be recovered in the ...
Related Articles
  1. Insurance

    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.
  2. Home & Auto

    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. Insurance

    A Nightmare On Wall Street

    These tales of banking terror sent shivers down the spines of even the most steadfast bankers.
  4. Professionals

    Tips for Handling Client Inheritance

    When clients leave or receive an inheritance, be prepared to deal with much more than mere paperwork or financial transactions.
  5. Professionals

    Top Tips for Family Wealth Transfers

    Essential tips for tackling family wealth transfers.
  6. Stock Analysis

    Will American Airlines Fall Back To Earth In 2015?

    The airline industry enjoys blockbuster profits, and American Airlines Group has been a key beneficiary of the favorable trends that have lifted stocks.
  7. Investing

    What is Equity Financing?

    Companies that are short on cash may need financing to pay for short-term needs or long-term capital expenditures.
  8. Stock Analysis

    What’s The Best Airline Stock In the Industry?

    With many airlines forced to seek bankruptcy protection, Southwest Airlines stands out as having consistently remained profitable throughout its history.
  9. Professionals

    Estate Planning Tips for Financial Advisors

    Estate planning is not a set-it-and-forget-it proposition. Here are some tips for you and your clients.
  10. Personal Finance

    What's an Irrevocable Trust?

    In an irrevocable trust, the grantor gives up the right to revise, amend or terminate the trust without the permission of the beneficiary. An irrevocable trust is best used as an estate-planning ...

You May Also Like

Hot Definitions
  1. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  2. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  3. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  4. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  5. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  6. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
Trading Center