The RTC Becomes Extinct

As of July 1, 1995, the RTC (Resolution Trust Corporation), created in August, 1989, became a part of history.

During its six year lifetime, the RTC handled 747 failed thrifts. There remains about $20 billion of thrift assets on hand, most of them considered hard to sell.

The final bill to taxpayers should be about $90 billion, which is $15 billion less than the amount authorized by Congress. Any thrift failure that happens now would be the responsibility of the Savings Association Insurance Fund (SAIF).

Unfinished business will be absorbed by the FDIC on January 1, 1996.

Copyright © 1995 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 5, No. 10, 7/95