What Is the Resolution Trust Corporation?
The Resolution Trust Corporation (RTC) was a U.S. government agency formed in response to a financial crisis in which almost 750 savings and loan associations failed. Assets of the insolvent lending institutions were transferred to the RTC, which had the responsibility of disposing of them, primarily through four types of public-private partnerships. The U.S. Congress disbanded the Resolution Trust Corporation in 1995 after it had disposed of more than $680 billion U.S. Dollars (USD) worth of assets and deposit liabilities. In 1989, the U.S. Congress passed the Financial Institutions Reform, Recovery and Enforcement Act, which, among other actions, created the RTC. During the decade of the 1980s, hundred of savings and loan institutions collapsed as a result of ill-conceived commercial and home real estate lending. The RTC gained control of assets and liabilities of banks that the U.S. Office of Thrift Supervision had declared insolvent.
