Progress of the Resolution Trust Corporation

The committee heard testimony on the progress of the Resolution Trust Corporation, an organization created by Congress to sort out and sell… read more

The committee heard testimony on the progress of the Resolution Trust Corporation, an organization created by Congress to sort out and sell the assets of failed savings and loans. A $10 billion funding bill for the Resolution Trust Corporation was approved by the Senate in November 1990, but failed to become law. The committee sought to determine the financial need of the Resolution Trust Corporation, how the RTC intends to spend its allocations, and the RTC’s long-range plan for bailing out the distressed savings and loan industry. Mr. Brady advocated additional funding for the Resolution Trust Corporation, saying that without further funding, the RTC would run out of funds to close and sell savings and loans and repay depositors of failed savings and loans by the end of February. Should Congress fail to fund the RTC for three months, American taxpayers would end up paying $750-850 million; an additional $250-300 million was lost the previous fall due to Congress' inaction. Mr. Brady estimated the RTC’s needs to be $145 billion to complete the goals for the 1991 fiscal year, and said the RTC needed immediately $30 billion from Congress to continue its work. Mr. Greenspan discussed the effect of the instability of the savings and loan crisis on the economy, particularly concerning the role the Treasury might play in easing the restricted money supply and the resulting credit crunch. Mr. Kemp criticized the “politics of envy,” advocating reduction or elimination of the capital gains tax. close

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Progress of the Resolution Trust Corporation

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Program ID:
15872-1
Category:
Senate Committee
Format:
Senate Committee
Location:
Washington, District of Columbia, United States
First Aired:
Jan 23, 1991
Last Aired:
Jan 27, 1991

Airing Details

  • Jan 23, 1991 | 10:00am EST | C-SPAN 1
  • Jan 23, 1991 | 7:30pm EST | C-SPAN 2
  • Jan 24, 1991 | 4:57am EST | C-SPAN 2
  • Jan 26, 1991 | 12:45pm EST | C-SPAN 2
  • Jan 27, 1991 | 12:00am EST | C-SPAN 2
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