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THE
FEDERAL
RESERVE
RANK of
SEMMTS

Research Library

1989 ANNUAL REPORT

Reso!ution Trust Corporation

Resolution Trust Corporation
Washington, D.C.
May 15, 1991

SIRS: In accordance with the provisions of section 501 of the Financial
Institutions Reform, Recovery, and Enforcement Act, the Resolution Trust
Corporation is pleased to submit its Annual Report for 1989. The report
was substantially complete last June; however, the General Accounting
Office audit of our financial statements, which is required by law, has just
recently been completed. Financial operating plans and forecasts are being
provided separately.

Very truly yours,

L. WiMiam Seidman
Chairman

The President of the U.S. Senate
The Speaker of the U.S. House of Representatives

BOARD OF D!RECTORS

RTC Board of Directors: Comptroller of the Currency Robert L. Clarke, Chairman L. WiHiam Seidman, Director C. C. Hope, Jr., and
Director of the Office of Thrift Supervision M. Danny WaH.

L. WiHiam Seidman
L. William Seidman was elected Chairman of the Federal Deposit Insurance Corporation on October 21, 1985. Prior to his appointment to the
FDIC, Mr. Seidman pursued an extensive career in the financial arena in both the private and public sectors. He was Dean of the College of
Business of Arizona State University and a director of several organizations including the Phelps Dodge Corporation, Prudential Bache Funds,
United Bancorp of Arizona, and The Conference Board. He has served as Co-chair of the White House Conference on Productivity, Vice
Chairman of the Phelps Dodge Corporation, Assistant to President Gerald Ford for Economic Affairs, and Managing Partner of Seidman &
Seidman, Certified Public Accountants, New York. He also was Chairman and a Director of the Federal Reserve Bank of Chicago, Detroit
Branch. Mr. Seidman received an A.B. degree from Dartmouth College and earned an LL.B. from Harvard Law School. He also holds an M B A.
from the University of Michigan. He is a member of the American Bar Association, the American Institute of Certified Public Accountants, and
several academic honorary fraternities including Phi Beta Kappa. He is the author of two books and numerous articles on business and tax
subjects.

C. C. Hope, Jr.
C.C. Hope, Jr., was named to the Board of Directors of the Federal Deposit Insurance Corporation on March 10, 1986, confirmed by the Senate
on March 27 and commissioned by President Ronald Reagan on April 7, 1986. Before his appointment to the FDIC, Mr. Hope spent 38 years
at First Union National Bank of North Carolina in Charlotte, where he retired as Vice Chairman in 1985. Mr. Hope is a former President of the
American Bankers Association and has served as Secretary of the North Carolina Department of Commerce. In the field of education, Mr. Hope
is a trustee and former Chairman of the Board of Wake Forest University and has been Dean of the Southwestern Graduate School of Banking
at Southern Methodist University. He holds a B.A. in Business Administration from Wake Forest University and has completed graduate work at
the Harvard Business School and The Stonier Graduate School of Banking at Rutgers University.

Robert L. Clarke
Robert L. Clarke became the 26th Comptroller of the Currency on December 2, 1985, and simultaneously became a member of the FDIC's
Board of Directors. Before his appointment, Mr. Clarke founded and headed the banking section at the Houston, Texas, law firm of Bracewell &
Patterson. He joined that firm after completing his military service in 1968. The banking section prepared corporate applications and securities
registrations, counseled management in expansion opportunities and the effects of deregulatory initiatives, and represented institutions in
enforcement matters. Mr. Clarke holds a B.A. in Economics from Rice University and an LL.B. from Harvard Law School. He is a member of
the bars of Texas and New Mexico. He has served as a director for two state banks and has been active in a number of civic, political, and
professional organizations.

M. Danny WaH
M. Danny Wall became Director of the Office of Thrift Supervision (OTS) on August 9, 1989, upon its creation under the Financial Institutions
Reform, Recovery, and Enforcement Act (FIRREA). He had been Chairman of the OTS's predecessor, the Federal Home Loan Bank Board,
since July 1, 1987. Before his appointment, Mr. Wall served on the staff of the Senate Banking Committee as Republican Staff Director from
January to June 1987, Staff Director from 1981 to 1987, and Republican Staff Director from 1979 to 1981. He was Director of Legislation for
Senator Jake Gam of Utah from 1975 to 1981. Before coming to Washington, Mr. Wall organized the Salt Lake City Redevelopment Agency
and served as its Executive Director from 1971 to 1975. He also was Executive Director of the North Dakota Urban Renewal Agency from
1964 to 1971. Mr. Wall has a Bachelor of Architecture Degree from North Dakota State University, and he has taken graduate courses in
planning and public administration at the University of Minnesota and the University of Utah.

INTRODUCTION
On February 6, 1989, as part of President Bush's restructuring plan for
the savings and loan industry, the Federal Deposit Insurance Corporation
(FDIG) was asked to lead a joint effort to evaluate and oversee the
operations of insolvent savings and loan associations. In addition to the
FDIG and the Federal Savings and Loan Insurance Corporation (FSLIC),
the Federal Home Loan Bank Board, the Federal Reserve Board, and the
Office of the Comptroller of the Currency participated in this
interagency initiative. The objective was to contain, where possible, the
losses in insolvent thrifts and preserve services to depositors until a
comprehensive reform of the savings associations' regulatory and deposit
insurance system was authorized by Congress. This large-scale and
immediate effort required a significant commitment of personnel from
these organizations.
During the next seven months, the FDIC took control of 262
institutions, each of which was placed in conservatorship or receivership.
The FDIC's goals with respect to these institutions were to preserve basic
services to customers; evaluate the losses at each institution; identify and
stop any abuse, waste, or fraud that might exist; and streamline costs
through consolidations and more efficient operations.
On August 9, 1989, the Financial Institutions Reform, Recovery, and
Enforcement Act (FIRREA) was passed and the Resolution Trust
Corporation (RTC) was established. Its job is to manage and "resolve"
failed savings associations that were insured by the FSLIC before the
enactment of FIRREA and for which a conservator or receiver is
appointed between January 1, 1989, and August 9, 1992. In doing so,
the Congress directed the RTC to maximize the net present value return
from the sale or other disposition of savings institutions and their assets;
minimize the impact of such transactions on local real estate and
financial markets; minimize the amount of any loss realized in the
resolution of these insolvencies; and maximize the availability and afford
ability of residential real property for low- and moderate-income
individuals.
The legislation also charged the RTC with reviewing and, if appropriate,
revising the case resolutions completed by the FSLIC during 1988 and
1989, and dissolving the Federal Asset Disposition Association (FADA).
The Board of Directors of the FDIC also serves as the Board of
Directors of the RTC. The Chairman is L. William Seidman. The RTC
Board in 1989 included C.C. Hope, Jr., Comptroller of the Currency
Robert L. Clarke, and Director of the Office of Thrift Supervision
M. Danny Wall. The fifth seat authorized by FIRREA for an appointed
director was not filled. The FDIC serves as manager for the RTC. The
day-to-day operations of the RTC are supervised by an Executive
Director, David C. Cooke.

"7%s job is to WMmage
and

re s o % v e './ tM % e d

s c w M ig s a s s o c M z t t o w s "

RESOLUTION TRUST CORPORAT!ON

The Resolution Trust Corporation Oversight Board was also established
under FIRREA to oversee and set policy for the RTC. The Oversight
Board has five members: the Secretary of Treasury who serves as
chairman, the Secretary of Housing and Urban Development, the
Chairman of the Federal Reserve Board, and two independent members
appointed by the President and confirmed by the Senate. These appointed
seats were not filled in 1989. D

TABLE OF CONTENTS
Resolution Trust Corporation

Transmittal Letter

iii

RTC Board of Directors

Introduction

RTC Organization Chart

Chairman s Statement

Executive Director s Statement

Operations of the Corporation

Asset and Rea! Estate Management Division

Resolutions and Operations Division

Finance and Administration Division

Special Counsel

Office of Research and Statistics

Office of Corporate Communications

Office of Budget

Office of Program Analysis

Office of Legislative Affairs

Office of the Executive Secretary

Regulations

Financial Statements

Statistics

Index

CHAIRMAN S STATEMENT
Although the Resolution Trust Corporation (RTG) has accomplished
much in its first few months of operations, its job is just beginning. The
task facing the RTG is monumental — indeed, it is unprecedented in the
history of the country.
The RTC is now the largest depository institution in the United States.
We currently have 312 "branches" and assets of approximately %169
billion in 39 states, and more than 13 million depositors. But, unlike other
large depository institutions with homogeneous branches, we are the
caretaker of a disparate group of institutions in various states of disarray.
And, we are not in business to make money. W e are here to save money
— the taxpayers' money. Our "branches" are troubled institutions that
have been turned over to us to be salvaged. Our objective is to service
these institutions until they can be sold to the private sector.
During the RTC's first few months we have established a new
nationwide sales organization with four regional and 14 consolidated field
offices. Along with the RTG Oversight Board, we developed a strategic
plan, formulated policies, and put internal controls in place. As required
by Congress, we filled posts and assimilated employees from the former
Federal Savings and Loan Insurance Corporation and the Federal Asset
Disposition Association.

L. William Seidman

The biggest challenge now facing the RTC is the management of billions
of dollars of assets left behind as insolvent thrifts are sold or closed. Our
goal is to maximize the net present value to the RTC while minimizing
the effect of these transactions on local real estate and financial markets.
Unfortunately, less than half of institutional assets are purchased by
acquirers of thrifts. This means the RTC is left with the difficult and
unpopular task of asset management and sales. We can dispose of liquid
assets quickly, but distressed assets such as delinquent commercial loans
and foreclosed real estate are difficult to sell, even in strong markets. Due
to depressed conditions in the areas where our supply is abundant, even
good assets such as performing commercial loans represent a formidable
challenge.
The RTC board recently adopted policies providing more flexibility in
asset disposition. W e can now lower the sales price of our real estate if
no reasonable offers are received during an appropriate marketing period.
W e are also broadening our use of auctions to bring together potential
investors. And, we are exploring the possibility of providing interim seller
financing.
In managing and disposing of assets, we must assure low and moderate
income individuals and nonprofit organizations the opportunity to
purchase eligible single- and multifamily housing. In addition, we are
committed to using the private sector as much as possible. Asset
management firms, property management firms, leasing companies, and
brokerage services are needed; and through our Minority and Women
Outreach Program we provide opportunities for minority and womenowned firms to contract with the RTC.
As we entered 1990, we increased the pace of resolutions. We have
done this by listening to the market, and expediting resolutions through
deposit transfers or through payoffs where there is no buyer interest. We
plan to resolve more than 150 institutions by the end of June, and
anticipate total resolutions by August will be about 200.

We are beginning a new accelerated resolution program, similar to the
FDIC's program, designed to facilitate the early sale of insolvent
institutions. The RTC will market troubled institutions before they are put
in conservatorship, thereby preserving their franchise value.
Finally, we are pursuing legal actions related to the thrift failures. Our
objective is to recover stolen money for the taxpayers and to assist in
prosecuting those who operated outside the law. Of course, the recoveries
will fall short of what the taxpayers must pay for the failure to supervise
this industry effectively. The RTC will spend billions of dollars to make
good on the promise of insurance protection made to depositors of
savings and loans.
Based on information made available to us by the Office of Thrift Super
vision, we expect that approximately 300 additional thrifts may be placed
in the RTC conservatorship program over the next few years, bringing the
total since inception to over 700. The aggregate book value of the assets
of all these institutions is approximately %400 billion. In addition, OTS has
identified another 315 institutions with about %150 billion in assets as
being troubled by poor earnings and low capital. Some of these
institutions may be turned over to the RTC. The final number of thrifts
placed in conservatorship depends on several factors, including general
economic conditions during the next few years, the ability of borderline
thrifts to raise necessary capital, and the ability of management to cope
with changes in the marketplace.

"We ctre here to save
money — the
ta x p a y e r s ' m o n e y ."

The challenge is significant and the approaches needed to respond will
have to be innovative. The RTC, while still in its infancy, has put the
framework in place to respond to this unprecedented undertaking, n
June 1, 1990

EXECUTIVE DIRECTORS STATEMENT
With the legislation as a guide, the assistance of the Federal Deposit
Insurance Corporation, and the policy direction provided by the Oversight
Board, the Resolution Trust Corporation has started its job of resolving
failed savings associations and marketing their assets. It is a difficult task
and one that will not be completed quickly or easily.
Upon enactment of FIRREA, the RTC focused its efforts on building a
decentralized organization. Four regional offices and 14 consolidated field
offices were established as operations centers. The regional offices oversee
all resolution and asset and contracting operations. The consolidated field
offices function as service centers for the RTC's asset and real estate
management activities and will support the majority of our employees.
This decentralized organization allows us to be in touch with and
accessible to the local markets where our assets exist.
Our staff of approximately 2,000 includes more than
600 managing agents and their staffs in conservatorships.
Because the RTC's existence is limited, we have tried to
hire temporary professional and support staff whenever
possible. Approximately 60 percent of our field staff are
temporary employees hired under appointments of one
to three years.
Through our conservatorship program, we manage and
operate 312 institutions. Our objectives for these
institutions are to establish control and oversight while
promoting customer confidence; to evaluate the condition
of the institution and determine the most cost effective
method of resolution; and to operate the institution in a
safe and sound manner pending resolution. Shrinking
these institutions by curtailing new lending activity and
selling their assets is a high priority and our managing
agents have been successful in this area.

David C. Cooke

A managing agent and one or more credit specialists
oversee each conservatorship's operations. The managing
agent's role is to ensure that the institution's management adheres to RTC
policies and procedures. Credit specialists assist the managing agent in
managing and disposing of assets, a process that begins immediately upon
conservatorship. In addition, we advance funds to conservatorships as part
of our high cost funds replacement program and also provide emergency
liquidity loans to conservatorships that are unable to meet their daily
liquidity needs.
In 1989, the RTC resolved 37 associations in a variety of ways,
including deposit transfers, deposit payoffs, and purchase and assumption
transactions. W e have structured our resolutions to include as many
bidders as possible, thus maximizing competition and participation (which
in turn should minimize costs). W e expect to resolve more than 150
institutions by June 30 of this year and a substantial portion of the rest
by the end of 1990.
The RTC's case resolution options are geared toward maximizing
competition and minimizing costs. We advertise and announce the
institutions for sale and contact interested bidders. A menu of options is
offered, ranging from potential whole thrift acquisitions to branch by
branch purchases. This approach was developed in response to the
demands of the marketplace. We plan to begin marketing institutions

before they are placed in conservatorship, an approach used successfully by
the FDIG. We anticipate that seeking buyers for troubled thrifts before they
are closed will result in less costly transactions and less community
disruption than we have experienced.
In addition to initiating the resolution of S&L conservatorships, the RTC
began marketing assets during 1989. Asset marketing can occur in three
phases. First, assets are sold while a thrift is in conservatorship as part of
our downsizing program; second, assets are sold as part of the resolution
transaction; and, third, assets not acquired as part of the resolution process
are sold through RTC receiverships.
The quality and composition of assets determine the difficulty the RTG
will have disposing of them. Liquid assets such as securities and mortgagebacked securities are reviewed for marketability as soon as an institution is
placed into conservatorship. Although we actively market commercial loans,
real estate, and other owned assets to acquiring institutions as part of a
resolution, bidders have focused their efforts primarily on the acquisition of
deposits. For assets retained after resolution, other disposition methods such
as auctions, bulk sales, and conventional property sales are being used.
Securitization and bulk sales of assets will be important tools in the sale of
financial assets.
In January the RTG published an inventory of 30,000 real estate assets
held as of September 30, 1989. The assets the RTG has available for sale
range from raw land, to commercial properties, to one- to four-family
properties, to shopping centers — that is, just about any type of property
that a financial institution lends on or takes as security.
As part of our asset management and disposition program, the RTG has
established an affordable housing inventory to identify home ownership and
rental housing opportunities for low- and moderate-income households. The
affordable housing initiative gives qualified individuals, families, nonprofit
organizations, and public agencies an exclusive right to purchase, or for
multifamily properties, the exclusive right, for a 90-day period, to express
serious interest in purchasing eligible residential properties.
The RTG also has created an outreach program for minority and women
contractors. These Arms will be allowed a price advantage of up to 3
percent for competitively bid services, subject to a ceiling of %2 million
each year and a ceiling of %6 million for the program.
As we move into the second half of 1990, we will be directing our
efforts on sales and service. Ours is an exceptionally difficult and
complicated task; we had to position ourselves to address it appropriately.
We spent several months establishing the organization, developing policies,
and assessing and managing our inventory. We are now focusing on moving
that inventory.
Finally, as directed in the legislation, we have, with the exception of a
final distribution of funds, liquidated the Federal Asset Disposition
Association (FADA). Only the resolution of outstanding litigation claims
remains before final distribution can be made to the FSLIC Resolution
Fund as the sole shareholder of FADA. The RTG was also directed to
review and, if the costs can be reduced, restructure the case resolutions
entered into by the FSLIG between January 1, 1988, and August 9, 1989.
This review will cover 96 agreements providing for the acquisition of 199
savings associations with %110 billion in assets. We solicited bids from the
private sector to perform these reviews and are now in the process of
awarding the contracts. D

"We expect to resofue
m ore

th a n

750

mstitMtiows by

Jtme 30"

June 1, 1990

OPERATIONS

ASSET AND REAL ESTATE MANAGEMENT D:\TS!ON
The Asset and Rea! Estate Management Division is responsible for
managing and disposing of billions of dollars of assets acquired through
the resolution of failed thrifts. To accomplish this task, the division focuses
on disposing of assets quickly and efficiently. The Asset Disposition,
Contract Management and Asset Operations, and Asset Marketing branches
all play important roles in attaining the division's objectives. The division
also has operations in the regional and consolidated field offices. The bulk
of the RTC's employees will be in the field offices to administer the asset
and real estate management functions.
By yearend, the division had filled 50 of its 78 Washington positions, or
64 percent. Seventy-two percent of the senior level management positions
had been filled.

A s s et Dispos/tVon Branc/t
The Asset Disposition Branch (ADB) is responsible for disposing of real
estate and other assets in a way that maximizes the net present value to
the RTC while minimizing the effect on local real estate and financial
markets. This task is unprecedented in both magnitude and complexity
and is complicated by the RTC's responsibility to ensure low and
moderate-income individuals and nonprofit organizations have the oppor
tunity to purchase eligible single- and multifamily housing.
The branch has developed an Asset Management and Disposition Plan
that outlines its goals and objectives. The ADB has also established and
implemented procedures for:
H
H
H
H
RESOLUTIONS AND RECEiVERSHtPS
SALES AND COLLECTIONS
August 1989 through December 1989
//7

Mortgages

$1.f

interest
$32

Other Loans
Securities
$408

Owned
Assets

Other
Assets

notifying rejected bidders within 30 days of a decision,
appraisal instructions and standards,
a telemarketing system for real estate owned, and
contracting asset servicing.

This branch is responsible for hearing credit cases relating to asset
disposition. It has delegated authority for asset matters to the Washington,
regional, consolidated, and field staffs. Generally, asset decisions are
presented in a case format and are reviewed by an asset committee. The
three Washington committees responsible for hearing these cases,
depending on the request or amount, are the RTC Committee on
Management and Disposition of Assets, the Senior Committee on
Management and Disposition of Assets, and the Board of Directors.
Generally, consolidated field offices have delegated authority for asset
decisions up to %10 million and regional directors have delegated
authority up to %25 million. Cases involving assets of %25 million or more
are referred to Washington for review. In this area, ADB has:
H

established Senior Credit Review Committees in the regional offices.
The committees review all cases that have been approved at the
field or consolidated site before they are forwarded to the
Washington office for review and approval.
H developed the Case Processing System that establishes procedures for
submitting cases for approval by the RTC Committee on
Management and Disposition of Assets.
H developed the Case Reporting System through which field,
consolidated, and regional offices report all credit cases approved
unden the respgctiye^ site's delegated authority.

'SLUR
C?

L c.ti'3

.# !

H implemented the Case Monitoring System that tracks al! credit cases
forwarded to the Washington office for approval.
The ADB is also developing an Estimated Gash Recovery System to
show projected recovery from assets compared to actual recovery. This
report will identify deficient areas in the disposition of assets and measure
the performance of the responsible account officers.
Ai%*rdaMe H ousin g P rogram
The Financial Institutions Reform, Recovery, and Enforcement Act
(FIRREA) requires the RTG to identify real estate assets suitable for low
to moderate-income housing and offer nonprofit housing organizations an
exclusive 90-day option to purchase these properties. These organizations
include consumer and public interest groups, nonprofit housing
organizations, and state and local housing agencies. Some of these
organizations will also act as clearinghouses to disseminate information
about properties available for sale by the RTG.
The RTC has worked closely with the National Governors Association to
select housing finance agencies that will serve as clearinghouses. The
governors' help is also needed to identify other housing agencies to
support our efforts to ensure that qualified purchasers benefit from the
sale of affordable housing properties. Governors and state housing finance
agencies all received copies of the listing of affordable housing properties
produced as part of the RTC's asset inventory. State housing agencies
were sent another volume listing all residential properties. The full listing
gives clearinghouses advance notice of all properties currently owned that
could fall within the scope of the program. At yearend 1989, State
housing finance authorities had not purchased any properties from the
RTG.

"The Division is nespow
siMe ybr Mmnoging
disposing of biMiows of
doMtwis of assets"

The RTC has consulted with the Department of Housing and Urban
Development (HUD), other federal agencies, and secondary market groups
to begin to identify and arrange for financing of eligible property sales.
RTG staff has met with the Federal Housing Finance Board, both in
Washington and in the regions, to solicit its cooperation in providing
financing from its affordable housing and community investment funds.
The RTG has also established contacts with national nonprofit
organizations that will also serve as clearinghouses and technical assistance
advisers.
Real Estate Asset Inventory
The Asset Disposition Branch compiled and published an inventory of
real estate assets owned by the RTG. The Real Estate Asset Inventory,
published December 31, 1989, lists approximately 30,000 real property
assets including commercial and residential properties and land. At
yearend, the division had received approximately 25,000 letters requesting
a copy of the inventory. During the first five months of 1990, 191,869
volumes of the inventory were sold.

Contract Management and Asset Operations RraneA
The Contract Management Section of the branch is responsible for
developing and implementing a program to involve the private sector in
the management and disposition of RTC assets whenever practicable and
efficient. In support of this program, the Contract Management Section led
the development of contractor fitness and integrity regulations and an
outreach program for businesses owned by women and minorities.
As part of the overall contracting program, the section directed the
development of the Asset Assignment Policy that determines which RTC
assets should be managed by contractors rather than by the RTC; the
Contractor Selection and Engagement Policy that establishes procedures
for awarding contracts; and RTC's Asset Management Fee Incentives Policy
that proposes several innovative compensation plans to motivate and
reward contractors for achieving various goals and objectives in disposing
of RTC assets.
CONSERVATORSmP, RECE)VERSH!P ASSETS
UNDER RTC MANAGEMENT

December 31,1989
//7 ^ 0 / 7 6 ^

The section is also responsible for developing and administering the
Contractor Database System and the Contractor Registration Program,
both of which will be important tools in screening and engaging
contractors. At yearend, the RTC had received approximately 10,000
requests from contractors interested in providing services to the RTC.
As the Asset and Real Estate Management Division's chief representative
on the Ethics Task Force, the section was instrumental in preparing an
ethics regulation that ensures only qualified firms perform services for the
RTC but at the same time provides opportunities for the private sector.

$73

Securities
$19.6

Conservatorships (281)
Receiverships (37)

$14.7

The section is also responsible for ensuring that firms owned by
minorities and women are given the opportunity to participate fully in all
contracting activities the Corporation enters into for the goods and
services required to manage and dispose of assets acquired from failed
savings associations. At yearend 1989, no minority or women-owned firms
had registered as contractors with the RTC. Contractor registration began
January 1, 1990.
The Asset Operations Section plans and reports on the results of asset
disposition. It is responsible for developing, implementing, monitoring, and
managing uniform, cost-efficient asset management information systems
that provide comprehensive and concise financial and management
analysis. The section's first priority is to implement the Asset Operations
Strategic Plan. Specifically, the section develops, implements, and manages:
*
*
*

asset system conversion strategies;
asset servicing strategies (pre- and post-conversion); and
financial reporting requirements.

Asset Operations establishes minimum standards and guidelines for asset
system conversions, asset servicing, system security, and related resource
management. This section also provides technical support in resolving
issues arising from field operations.

Asset Marketing BrancA
The Asset Marketing Branch is responsible for marketing the large
inventory of real properties, bulk loans, and other assets under the RTC's
control, and for guiding and assisting the regional offices in their
marketing activities.

The branch's main goal is to provide market access to the RTC's initial
inventory of approximately 30,000 properties nationwide.
The branch has established a comprehensive investor database for
buyers of residential and commercial properties, mortgages, and other
assets. This database, which is continuously updated, is intended for the
regional offices to use in marketing both conservatorship and receivership
assets.
As directed by FIRREA, the Asset and Real Estate Management Division
compiled an inventory of real property assets that were under the RTC's
jurisdiction on September 30, 1989. More than 45,000 copies of the fourvolume set were printed and distributed to Congress, executive agencies,
federal depository libraries, RTC offices, conservatorship institutions, and
the public. Each four-volume set was priced to offset the cost of printing
and shipping. The inventory of record will be updated semiannually, but
monthly updates will be part of a computer-based inventory access system
to be introduced in 1990.
The RTC contracted with a national telemarketing/direct marketing
company to manage the many inquiries anticipated after the RTC's asset
inventory was published and to provide access to the portfolio infor
mation. After conducting a competitive bidding process, the contract was
awarded to AA/DMC of Dallas, Texas. The services provided under the
contract will include toll-free telephone access and distribution of the
inventory. D

RESOLUTIONS AND OPERATIONS DIVISION
The Resolutions and Operations Division is responsible for operating
insolvent savings associations in the RTC's conservatorship program and
implementing resolutions for those troubled institutions.
STATES w rrH MOST ASSETS
!N CONSERVATORSHIPS,
December 31, 19$9

(ia mFMwny of
State

Tota! Assets in
Conservatorship

Texas

% 24,723

California

14,471

New Jersey

10,992

Arizona

8,560

Kansas

4,208

Illinois

3,510

Florida

3,368

Louisiana

3,289

Arkansas

2,600

Oklahoma

2,533

Note:

Data based on 9/30/89 Thrift Financial

On August 9, 1989, the day the Financial Institutions Reform, Recovery,
and Enforcement Act was enacted, the division assumed control of 262
insolvent savings associations that had been under FSLIC and FDIC
conservatorship.
Over the next four and one-half months, 56 additional associations were
placed in the RTC's conservatorship program. During the same period, the
division sold or otherwise resolved 37 institutions.
This immediate and significant responsibility required the division to
quickly develop the infrastructure necessary for the difficult tasks ahead.
Hundreds of policies and procedures were created. Staff and administrative
facilities expanded rapidly as the new organization took shape.
The division has two groups in Washington, Operations and Resolutions,
and extensive operations in each of the RTC's four regional offices in
Atlanta, Kansas City, Dallas, and Denver. The division's primary goal is to
resolve the insolvent savings associations at the least cost to the public.
O PERATKM VS G R O & P
The Operations Group has two major functions: managing the RTC's
conservatorship program, and pursuing civil and criminal investigations of
insider abuse, malpractice, and fraud. The group is headed by the Deputy
Director for Operations.
Conservatorship Operations Branch

STATES W!TH LARGEST NUMBER
OF CONSERVATORSHIPS,
Deeexaber
1989
State

No. of
Institutions

Texas
Louisiana

Illinois
California
Kansas
Colorado
Florida
Arkansas
Oklahoma
Mote:

Mississippi, Missouri, and N ew Mexico tie
for tenth with 6 conservatorships in each state.

The Conservatorship Operations Branch (Operations) must ensure that
institutions in conservatorship are managed to minimize the costs and
risks to the RTC. To achieve this goal, Operations develops policies and
procedures to guide RTC's regional offices and managing agents.
Operations also directs and monitors compliance with guidelines
established by the RTC Oversight Board, disseminates data related to its
operations, develops programs to manage the assets held by conser
vatorships nationwide, and ensures that closings of insolvent institutions,
insurance settlements, and claims activities are executed efficiently.
Operations is organized in five sections. The Review Section monitors
each institution in conservatorship. The Financial Section oversees and
coordinates policy issues relating to the nationwide conservatorship
program. The Insurance Settlement Section and the Closing Operations
Section support regional efforts related to the closing of insolvent
institutions and subsequent payment of claims. The Support Section
provides administrative and systems support to the conservatorship
program.
A managing agent working for the RTC oversees each conservatorship
institution, ensuring that its management follows RTC policies and
procedures. The agent also assesses the financial condition of the
institution.
RTC managing agents must develop a business plan for an institution in
conservatorship within 60 days. To the extent possible, funding costs are
reduced by replacing high-cost funds with RTC advances, and by curbing
new lending and selling assets to shrink the institution's size.

Managing agents are also charged with eliminating any abusive or
specuiative practices, and investigating any evidence of fraud. When
necessary, new management is hired to ensure conservative operation and
preclude insider abuse.
Operations made substantia! progress in its first months. It created a
pilot program for securitizing and selling performing loan portfolios from
conservatorship institutions. The division, working with the Finance and
Administration Division, expects to develop this into a nationwide
program.
One of Operations' more significant projects was developing a process to
value and dispose of mortgage servicing rights held by conservatorship
institutions. By yearend, over %11 billion (principal balance) of mortgage
servicing rights had been approved for disposition.

TEN LARGEST CONSERVATORSHIPS,
December 31, 1989

To help evaluate progress in downsizing institutions, the branch
developed a weekly asset disposition reporting system, which tracks the
sale of assets from conservatorships and the use of the proceeds.

Name and !ocation

A new automated system was designed to identify potentially uninsured
funds in conservatorship institutions. This system improves the RTC's
ability to conduct large insurance settlements, and it will assist managing
agents in identifying and handling uninsured funds.

Gibraltar Savings, F.A.,
Simi Valley, CA

8,223

Western Savings & Loan
Association, F.A., Phoenix, AZ

5,228,

Bright Banc Savings Association,
Dallas, TX

3,811

Lincoln Savings & Loan
Association, F.A., Irvine, CA

3,694

Midwest Savings Association,
F.A., Minneapolis, MN

2,351

San Antonio Savings Association,
F.A., San Antonio, TX

2,311

Horizon Financial, F.A.,
Southampton, PA

2,098

Benjamin Franklin F8A,
Houston, TX

2,015

Southwest Savings & Loan
Association, F.A., Phoenix, AZ

1,872

Operations initiated a study of conservatorship institutions' involvement
in low- and moderate-income housing projects funded by tax-exempt
municipal bonds. Detailed information was obtained on more than 290
issues in 48 associations, with supporting bonds totalling more than %1.5
billion.
Several key policies and procedures were issued in 1989, including
procedures for pass-through receiverships and subsequent conservatorships
and a draft policy for the payment of creditor claims. These directives are
intended to ensure proper application of FIRREA rules and promote
consistency among the RTG's regional offices.
The conservatorship program began in February 1989 under the
auspices of the FDIG. By August 9, 1989, when the RTG began its work,
262 thrifts were in conservatorship. At yearend, 56 thrifts had been added
to the program and 37 had been resolved, leaving a total of 281 thrifts in
conservatorship.
These 281 institutions had gross assets with a book value of %106.7
billion, based on their financial reports as of November 30, 1989. The
estimated fair market value of these assets, as of November 30, was
approximately %89.2 billion, indicating an estimated loss of %17.5 billion.
The book value of the liabilities of these 281 thrifts exceeded the book
value of the assets by %13.8 billion. Thus, the estimated preliminary total
loss on these thrifts was approximately %31.3 billion as of November 30,
1989. It should be emphasized that these estimates will be refined to
reflect changes over time and the results of more detailed on-site analysis.
By yearend 1989, RTG's high-cost-funds replacement program had
advanced %9.2 billion to 156 institutions in conservatorship. There were
also 254 emergency liquidity advances totalling %!l.8 billion allocated
among 85 conservatorships.

Tota! assets*

City Savings Bank, F.S.B.,
Bedminster, NJ

t$ 9,891

*Data based oil 9/30/89 Thrift Financial Reports.

!nvestigations Branch

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As President Bush has said, "unconscionable risk-taking, fraud, and
outright criminality were factors" in the insolvency of the federal
insurance fund established to protect the public's deposits in thrift
institutions. As a result of these abuses, losses have fallen on the
American taxpayers. The RTG is dedicated to ensuring that those who
caused and benefited from these losses are not permitted to go
unpunished or retain their ill-gotten gains.
The Investigations Branch (Investigations) directs and coordinates the
policy and planning activities necessary to carry out the RTC's nationwide
investigative program. This responsibility includes staffing and completing
investigations, improving investigative methods, and monitoring civil and
criminal legal actions relating to fraud and professional liability.
Investigations also prepares and coordinates Congressional testimony and
responds to inquiries from Congress and the public relating to
investigations of fraud and professional misconduct.
The RTC is committed to retaining a highly competent professional field
force of investigators. Investigations has started a rigorous new in-house
training program for its staff to broaden their fundamental investigative
skills, including techniques for tracing assets and tracking fraud, bond, and
professional liability claims. Training will also give investigators a deeper
understanding of complex financial transactions. When appropriate,
training from private sources will be used and investigators will be
encouraged to attain professional certification or credentials appropriate to
their field.
Investigations supports its field investigators in several ways. It maintains
a comprehensive database with the names of people and organizations
that have been convicted, indicted, investigated, or otherwise associated
with bank fraud, insider abuse, money laundering, or that have caused the
insolvency of a financial institution. This system makes it easier to
manage investigations and analyze possibly improper actions. The branch
also works with a network of international, federal, state, and local law
enforcement agencies to investigate the background of suspected criminals.
Investigations began its operations with 90 investigators, many of whom
transferred from the FDIC's Division of Liquidation. At yearend the
Washington staff had completed about 200 reports of preliminary findings
pertaining to potential bond, professional liability, or civil fraud claims.
Finally, RTC investigators were monitoring over 1,000 criminal referrals
sent to the Justice Department by yearend.
RESOLt/TMMVS G R O tTP
The Resolutions Group (Resolutions) markets and sells insolvent savings
associations that are managed by the RTG in its conservatorship program.
Again, the fundamental goal is to minimize the cost to the public.
The group's marketing effort is designed to reach a wide range of
prospective bidders across the country. Minority and women bidders are
encouraged to participate in the resolutions process.
Resolutions strives to make the bidding process as fair and efficient as
possible. AH interested parties approved by the appropriate regulators are
invited to bid conferences for institutions ready for sale and are given a
reasonable period to perform due diligence where applicable. All bids are
submitted sealed and opened simultaneously.

The least-costly bid, provided its estimated cost is less expensive than a
payout of insured deposits, is recommended to the RTC's Board of
Directors.
In resolving minority-owned institutions, RTC policy is to give preference
to bids from depository institutions owned by investors of the same ethnic
identification as that of the failed thrift's previous owners. At yearend
1989, there were 40 minority groups, including three groups of women,
that had indicated interest in participating in the resolutions process.
These groups did not submit bids for any transactions.
Resolutions is organized into four functional areas and is headed by the
Deputy Director for Resolutions. Associations with assets of more than
%500 million are handled by the Major Transactions Branch, while smaller
institutions are handled by the Field Resolutions Branch.
Major Transactions has several Assistant Directors (Resolution Managers)
in charge of specific large resolutions. Each manager is responsible for all
institutions of %500 million or more in one of the RTC's four regional
areas.
The Assistant Director for Field Resolutions oversees the resolution
process for smaller institutions. Field Resolutions activities are closely
coordinated from Washington, with the appropriate RTC region responsible
for most aspects of the resolution process.
The Marketing Section coordinates the marketing activities of the
Resolutions Group. An Analysis Section provides analytic support and
maintains the resolutions data base.
Major Transactions Branch
As of December 31, 1989, the Major Transactions Branch had resolved
four large institutions and was in the process of resolving seven more.
The four large transactions completed during the RTC's first three
months of operation were located in Texas, Pennsylvania, Florida, and
California. The institutions had total assets of %8.3 billion, liabilities of %9.5
billion, and 173 branches. In all four transactions, the performing
residential loans and other retail assets passed to the acquirers.
A broad spectrum of potential acquirers
institutions, including savings associations,
corporate and private investors. Over 100
and a total of 13 bids were received. The
by several different banking organizations.

was invited to bid for these
banking institutions, and
of them requested bid packages,
four institutions were acquired

As part of these transactions, the RTC transferred %7.7 billion in
deposits from over 840,000 depositor accounts to the acquirers. In
addition, %2.3 billion in assets were sold to the acquirers. These trans
actions required an initial cash outlay from the RTC of %7 billion, with an
estimated final cost of %1.6 billion. The RTC received estimated total
premiums from these transactions of approximately %225 million. This
amount represents a savings to the RTC when compared to the cost of
liquidating the institutions.
By yearend, the RTC had begun actively marketing seven major
institutions with home offices in Maryland, Texas, Ohio, Illinois, Kansas,
and Arizona and over 190 branches. These institutions had combined
assets of ^12.1 billion and total liabilities of %14.2 billion, with deposits of
jj%8.9 billion in nearly 1.1 million accounts.

In order to increase market exposure and to test alternative transactions,
the RTC offered these seven institutions under three alternative trans
action forms, each of which provided for different amounts of assets
passing to acquirers. These institutions are scheduled for resolution during
the first half of 1990.
To speed future transactions and assure consistent, fair, and open
bidding, Major Transactions has designed standards and policies for trans
action structures, public information packages, bid packages, and legal
documents. These standards are being used for the institutions currently
being marketed and will be further refined during 1990.
FieM Reso)ut!ons Branch
At yearend, the Field Resolutions Branch had overseen the resolution of
33 thrift cases, each with assets of %500 million or less. The first three
cases were resolved on August 10, 1989, only one day after the enabling
landmark thrift legislation was enacted.
The 33 resolutions, in 14 states, involved 26 insured deposit transfer
transactions, three purchase and assumption transactions, and four payouts
of insured deposits.
These institutions had total assets of approximately %2.6 billion and total
deposits of approximately %3.1 billion. Over %673 million of assets were
sold through the resolution process, while almost %2 billion of assets were
retained by the RTC for disposition. The RTC's initial cash outlay in these
transactions was j%2.5 billion, with an estimated final cost of approximately
%1.5 billion.
By yearend, the Field Resolutions Branch was in the process of resolving
11 institutions. These institutions had approximately {%1 billion in assets
(book value).
Standard Case Resolution Process
The Resolutions Group generally follows several steps in the resolution
process. The first step is to determine which institutions should be
resolved first. All insolvent institutions under the authority of the RTC are
scheduled for resolution based upon several factors. The cases that present
the best opportunity for minimizing costs are then selected from this
schedule. The appropriate regulators are notified that the case has been
selected for resolution and the RTC's regional offices begin preparing bid
packages and loss reviews for each institution.
The marketing effort generally begins with a press release and adver
tisement in the Wa# Street Journal or other major publications. In
addition, the RTC contacts investors that have previously expressed
interest in the specific institution or in similar institutions. The RTC also
requests lists of eligible bidders for each institution from federal bank and
thrift regulators. A package containing general information, financial
statements, branch locations, and deposit information is provided to
interested parties. Once investors have been approved by the regulators,
they sign a confidentiality agreement and are invited to a bid conference
where more detailed information about the institution and the transaction
is provided.
The RTC prepares two sets of documents for the bid conference: the
bid package, and the legal documents that will be used to consummate
the transaction. The bid package contains detailed information about

individual institutions, including financial statements, detailed asset and
liability data, branch office structure, administration, and human resources.
At a bid conference, copies of the bid package and legal documents are
usually distributed to bidders. The schedule for any due diligence reviews
and the date bids are due are established as soon as possible after the
conference.
An asset valuation report is prepared for each institution and is used to
develop the RTC's loss estimate for the institution. This estimate is
important for analyzing bids and is one of the principal elements of the
RTC's "cost test".
On the date bids are due, the RTC opens and analyzes the bids and
verifies that all necessary approvals have been received by the appropriate
regulators. If it passes the RTC's "cost test," the best bid is recommended
to the RTC Board of Directors.
The Board reviews the bids and may approve a winning bidder. If a
winning bidder is selected, appropriate legal documents are drawn up and
signed as soon as is practical. The institution will then be closed by the
Office of Thrift Supervision, the RTC named receiver, the assets and
liabilities transferred to the winning bidder as provided in the legal
documents, and the appropriate funds transferred by the RTC.
A prioritization schedule is generated quarterly for each of the RTC's
four regions to assist in the process of selecting institutions for resolution.
In addition, a national priority schedule is generated quarterly to help
ensure resources are efficiently allocated among regions. Each schedule is
updated 30 days before the end of each calendar quarter to reflect
additions to the RTC's conservatorship program, changes in investor
interest, and new data on institutions already in the conservatorship
program.
ytna/ys/s Section
The Analysis Section provides information management and analysis
support to the Resolutions Group. The section calculates the RTC's "cost
test" for large resolutions, maintains the RTC Resolution database, and
analyzes the cash flow for resolutions.
Cost test. The RTC is generally required to resolve institutions at less
than the estimated cost of an insured deposit payoff. To satisfy this
requirement, the Analysis Section created the RTC's "cost test"
methodology based on the approach used by the FDIC. The test
determines the estimated cost of resolution, the initial cash outlay
required, and the estimated break even bid for a particular resolution.
Calculating the break even bid level for each transaction is critical in
selecting the winning bid. To make this determination, the "cost test"
considers several factors. The minimum acceptable bid represents the
break even bid level compared to a deposit payoff for each type of tran
saction.

Resolutions Database. The RTC needs detailed information about all
resolved institutions for reporting and research. The Analysis Section has
completed the analysis for and design of a database that will be used in
the resolution process. Programming and data entry will be completed
in 1990.
The resolutions database includes detailed financial and transaction infor
mation that can aid management and policy decisionmaking, as well as
provide information to the public and Congress. The database can also be
used by the RTC to analyze completed transactions.
CasA F7ow Forecasting. When a case is selected for resolution, an
estimate of cash requirements is needed for cash management and
planning. The Analysis Section prepares an estimate for each institution
and for each type of transaction.
M arAedng

The Marketing Section (Marketing) supports the Resolutions Group by
coordinating programs to attract potential acquirers, providing information
about the sales process, establishing and maintaining a National Marketing
List of potential buyers, analyzing market interest in specific institutions,
and planning and executing marketing conferences.

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Soon after the RTC was established, Marketing began designing a
computerized database for the National Marketing List. The system
integrates lists of potential acquirers obtained from the different regulatory
agencies. This database is used to produce lists of eligible acquirers,
including financial institutions, financial holding companies, and corporate
and private investors. It helps establish the schedule for resolving
institutions based on market interest, and serves as the basis for targeting
potential acquirers when institutions are announced for sale.
Marketing has also concentrated on attracting new potential acquirers
into the sales process. A brochure entitled "A Buyer's Guide: How to
Purchase a Savings Association from the RTC" was published to explain
the process. In addition, a toll-free "buyer's hotline" was established in
November to serve as an initial point of entry for potential investors with
questions about the resolution process.
By yearend, Marketing had distributed over 6,000 copies of the Buyer's
Guide with an investor application package, which includes the forms
investors and financial institutions must complete to be placed on the
National Marketing List.
Marketing also has screened more than 800 applications from corporate
and private investors who have expressed interest in the sales process.
Applicants that did not have the required operating charter were referred
to the appropriate regulatory agency for clearance. By yearend, approx
imately 600 corporate and private investors were added to the Marketing
List, bringing the total to more than 2,700 potential private-investor
acquirers.
Marketing also coordinates the screening process of financial institutions
with the appropriate regulators. These regulators, not the RTC, provide the
approvals necessary for a transfer of deposits to another institution; the
institution must have the appropriate charter and federal deposit
insurance. Without those approvals, a transaction cannot be completed.
In 1989, Marketing planned and coordinated three bidders' conferences
in Washington to solicit bids for 11 thrifts with over %500 million in

assets. Approximately 1,250 financial institutions, financial holding
companies, and corporate and private investors were invited to participate
in these meetings.
Marketing also supplied RTG field offices with lists of potential acquirers
for nearly 200 thrifts with less than 8500 million in assets. Marketing
worked closely with the Field Resolutions staff to coordinate marketing
efforts and ensure uniformity in policies and procedures adopted by the
national and field offices.
Marketing has spearheaded the Resolutions Group's efforts to encourage
the participation of women and minorities in the resolution process. A
coordinator was appointed for this important function and procedures are
being written for a minority outreach program to attract minority bidders
and help preserve the minority status of conservatorship institutions.
During the latter part of 1989, Marketing began working on a limited
due-diligence program that will give potential acquirers an opportunity
early in the sales process to conduct a limited, inexpensive review of
specific conservatorship thrifts. The program is expected to attract new
investors because it will demonstrate the franchise value of various thrifts.
It should also generate more interest from experienced potential acquirers,
who can use this process to structure a more comprehensive due-diligence
effort later in the bidding process. Q

MNANCE AND ADUHMSTRATMN D]V!8iOI\
The Finance and Administration Division is responsible for developing,
evaluating, and operating the Corporation's funding programs and capital
markets activities. The division also directs all RTC administrative and
automation support services, and coordinates the operations of the
Corporation's financial branches.
Corporate Funding Section
The Corporate Funding Section is responsible for the planning, analysis,
evaluation, and requests relating to the financial needs of the RTC and the
institutions and receiverships under its jurisdiction. The section also coor
dinates operational activities related to funding for the Corporation,
including resolutions, advances to receiverships, and conservatorships. The
money is used for high-cost-funds replacement and liquidity. The section's
responsibilities are met through the Financial Systems Unit, the Funds
Administration Unit, and the Planning and Policy Unit.
In 1989, the Corporate Funding Section focused primarily on making
advances, reporting funding activities, training staff, and educating
managing agents and regional office employees about the RTC Advance
Program.

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The section took several actions in early August to ensure the RTC
could make advances and payments to conservatorships and receiverships,
and for resolution activities. Further, systems and reports were developed
to provide management with an accurate accounting of its funding
activities. Since then the Corporate Funding Section has designed,
developed, and implemented reports, procedures, and systems to promote
accuracy, timeliness, and efficiency in all areas of its operations.
In 1989 the Corporate Funding Section established funding relationships
with and advanced funds to 250 conservatorships and receiverships
involving more than 1,300 separate advances. The total advanced to
borrowers in 1989 was approximately %10 billion. The section also
transferred funds totalling approximately %9 billion to finance 37
resolution transactions during 1989.
Written procedures, guidelines, and basic internal controls for processing
RTC advances and payments were developed, implemented, and updated
as necessary. The procedures covered receipt of requests for advances,
transfer of funds to finance resolution activities, daily reconciliation,
financial spreadsheet maintenance, and reports distribution.
Several daily management accounting reports were developed to record
and report on the RTC's advance and payment operations to conser
vatorships, resolution cases, and receiverships. Reports were also developed
to track and manage the RTC's cash position in its Treasury Account for
each of its major subsidiary operating accounts: high-cost funds,
emergency liquidity, and resolutions.
A principal and accrued interest verification system was established and
used monthly to increase internal control over all outstanding RTC
advances. A signed confirmation is required of each managing agent and
liquidator-in-charge whose organization has outstanding advances from the
RTC. To support this function, an automated application was developed
for tracking and reporting the principal amounts and interest accruals on
advances made by the RTG.

A reporting system was developed to track detailed uses of funds by the
borrowers, such as the paydown of Federal Home Loan Bank advances or
the replacement of maturing brokered deposits. The same reporting
system was developed to monitor the RTG ratio on advances to current
estimated total loss.
The Corporate Funding Section also created a database to track its
receipt of documents required from each borrower, as dictated in the
RTC's Lending Circular No. 1 and its appendices. In addition, a high-cost
maturing-liabilities database was set up to assist in the development of
policy and plans for the best use of RTC funds under the high-cost-funds
replacement program. The database can include these funding needs in
cash management projections as well.
Finally, the section established an RTG Gash Position Report, produced
daily by the FDIGs Division of Accounting and Corporate Services, to
provide an independent accounting of RTG disbursement and receipt of
funds.
In the coming year the Corporate Funding Section expects to formalize
and improve the presentation of information between the section and the
RTC's operating divisions (corporate and regional) regarding RTG funding
requirements and capital markets operations. Formal information
exchanges will enable the section to make the most efficient use of the
RTC's financial resources in accordance with adopted policies, plans, and
agreements.
The section will also assist management in identifying, evaluating, and
structuring alternative low-cost sources of funding to finance RTG
operations.
A professional staff development program will be put in place to help
the section enhance its ability to meet its objectives and growing respon
sibilities.
In addition, the section anticipates developing an integrated automated
data system to meet its increasingly complex cash management and
management accounting needs. The growth in funds managed and
institutions under conservatorship requesting advances, coupled with the
importance of providing accurate, timely, and useful financial data,
demands an immediate, sophisticated technical response.
C&pAaF M ark ets BnancA
The Capital Markets Branch is responsible for recommending and
implementing policies and procedures relating to national securities sales,
securitization, structured transactions, and all other capital markets
oriented activities of the RTG; developing and directing programs to pool
and securitize loans and other assets in the conservatorships and
receiverships; and monitoring the capital markets and the broker/dealer
community in order to ensure the RTG receives maximum value from
asset disposition. In addition, the branch provides guidance and assistance
to the regional offices and managing agents in evaluating and managing
interest rate risk, downsizing efforts, and liquidity management.
The Capital Markets Branch began operation in November 1989. After
meeting with investment advisors, brokers, and other financial market
participants to develop disposition strategies for securities controlled by
the RTC, the branch issued a Solicitation of Services for a financial
advisor to implement a national market mechanism to evaluate the

feasibility and benefits of securitizing assets. The financial advisor will
begin work on the sales and training programs by creating a securitization
demonstration project. The branch currently assists conservatorships and
receiverships in the disposition of securities. It has begun advising the
regional offices and working with them to begin the securitization
demonstration project with the portfolios of one or two institutions in
each region.
The Capital Markets Branch will be developing a national sales program
for all securities, including junk bonds and other financial instruments
such as interest rate swaps, owned by institutions under the RTC. Addi
tionally, the branch will develop its own securitization program to
enhance the value of loans and other assets held by RTC conservatorships
and receiverships. This program will allow for pooling of assets when
greater value is achieved through that process. The branch will continue
to assist RTC regional and Washington staff.
In addition, the inventory of securities held by all institutions under the
RTC will be computerized, and the branch will track inventories and sales
of securities. The database will be used to securitize and pool assets,
particularly when a premium can be obtained by producing larger blocks.
Administrative Section
Congress and the President can create a new federal agency, but it
doesn't fully come alive until office space is found and leased, people are
hired and trained, and equipment is bought and installed. The
Administrative Section provides these essential support services for the
RTC in Washington and throughout the country.

RTC STAFFING
December 31, 1989
Office

Number of Employees
Permanent Temporary Tota!

Washington
Regional and
Field Offices

TOTAL

376

—

376

656

808

1,464

1,032

808

1,840

The administrative challenges of staffing and establishing a nationwide
organization like the RTC are considerable. During 1989 the RTC's four
regional offices were established, and ten of what will eventually be 14
consolidated field offices were ready to begin operations (leases were
signed in 1990).
For each of these locations and the Washington office, the
Administrative Section is responsible for handling personnel
administration; locating office space, negotiating leases, equipping and
furnishing space, and moving employees; coordinating the RTC's
procurement of goods and services; and implementing the agency's travel
and training programs.
At yearend the RTC had approximately 1,900 employees, including
more than 600 managing agents and their staffs in conservatorship. Six
hundred and fifty employees transferred from the FDIC and 190 people
from various FSLIC operations were allocated to the RTC.
Because the term of RTC's existence is limited, the agency has tried to
contract its services and hire temporary staff whenever possible. Over 60
percent of the field staff at yearend were temporary employees hired
under appointments of one to three years. Ultimately, the RTC will have
about 5,000 temporary and permanent employees.
Automation Section
The Automation Section is responsible for planning and implementing
management information systems for the RTC. Because the RTC has a
number of functional areas and its workload is distributed across the
country, the Automation Section's responsibility ranges from providing

complete automated solutions to helping other groups implement their
information systems. The Automation Section is the focal point for coor
dinating the purchase of hardware and telecommunications services for
the Washington office, as well as the regional offices and consolidated
sites.
In 1989 the Automation Section began several projects to create the
infrastructure required to handle the RTG's information processing and
reporting needs. These include:
* Developing several processing and reporting systems, including a
manpower reporting system, a loss profile analysis, and a contractor,
consultant, and vendor database.
* Planning a Request for Proposal for a contractor to provide an
overall MIS plan. This project includes tasks to define requirements,
assess existing and proposed systems, and recommend approaches to
fulfill the varied processing and reporting needs.
* Initiating a Request for Proposal for the RTG's overall hardware
needs to provide automation capabilities (primarily workstations and
local area networks) to all RTG personnel as staffing expands in
1990.
* Analyzing alternatives to meet the RTG's overall wide-area
networking needs. Selecting the networking environment will be a
critical decision because of the many locations and the huge amount
of data and electronic messages to be transferred.
The challenge facing this section will be to supply over 5,000 users with
the technology to fulfill the RTG's complex mission. Based on current
projections, the amount of data to be collected, processed, and reported
by the RTG is similar in scope to that of the country's largest
corporations. Hardware, networks, and application software all must be
acquired, and the technology must be integrated in a very short time.
Financiat Reporting Section
The Financial Reporting Section coordinates and reviews RTG financial
information presented to senior management, Congress, the executive
branch, and the public.
The Corporation and the Oversight Board must submit, to the Congress
and the President, annual reports containing audited statements of the
RTC's financial condition and operations. Additional reports and testimony
with updated financial information must be prepared semiannually for the
Congress. F1RREA requires the RTC to update its estimates of contingent
liabilities quarterly. Reports on the status of RTC obligations with respect
to the statutory formula limiting such obligations must be submitted
regularly to the Oversight Board and others. Additional financial data and
reports are required from the Corporation on a period or ad-hoc basis by
the Oversight Board, Congressional committees, the General Accounting
Office, the Treasury Department, the Office of Management and Budget,
and the Congressional Budget Office.
The Financial Reporting Section also assists in solving financial reporting
problems as they emerge, and reviews the methodologies employed in the
development of reports, recommending changes where necessary.
The first semiannual report, covering activities from August 9, 1989, to
September 30, 1989, was submitted by the RTC and the Oversight Board
to Congress in November 1989. Corporation officials also testified to the

House and Senate Banking Committees and the House Banking
Committee's RTC Task Force concerning the RTC's start-up activities.
In the future the Financial Reporting Section will work closely with the
operations divisions of the RTC and FDIC accounting support units to
ensure timely completion of the annual and semiannual reports to
Congress. Reports will be developed periodically to track the RTC's
position with respect to the maximum limitation on its obligations. The
Financial Reporting Section will continue to respond to the increasing
requests from other government entities for financial information. The
section will also work with the staff and outside contractors responsible
for evaluating the Corporation's financial information needs and for deter
mining the alterations to current information systems necessary to meet
financial reporting requirements, n

SPECKAL COUNSEL
Legal services for the RTC are provided by the FDIC's Lega! Division.
The RTC's Special Counsel serves as the overall coordinator of those
services. The Special Counsel is the RTC's liaison to the FD1C Legal
Division and legal adviser to the Executive Director and Division Directors.
The Special Counsel also serves as the Associate General Counsel (RTC)
for the FDIC's Legal Division. As such he is directly responsible for legal
support to the RTC's regional operations and the bulk of the direct legal
support in Washington. The section in Washington is composed of 13
attorneys plus support staff. It advises the RTC Washington personnel on
issues such as resolutions, contracting, real estate matters, commercial
litigation, receivership issues, conservatorship operations, securitization, and
other commercial transactions. The section relies upon other sections and
branches of the FDIC's Legal Division for such issues as tax, directors' and
officers' liability, accountants' liability, and blanket bond claims. The
regional units of the section are each headed by a regional counsel who is
responsible for the overall provision of legal services within a region.
There are legal units in all regional offices and consolidated field offices.
The RTC has assumed responsibility for over 50,000 lawsuits and
expects to absorb another 40,000 by year-end 1990. Over 85 percent of
these cases will be handled by outside counsel under the guidance and
direction of in-house staff. The fees and caseloads involved require
significant in-house oversight and control.
The RTC, like the FDIC, is interested in retaining minority law firms.
The division's minority and women outreach program has made significant
strides in that regard. Additionally, both the RTC and FDIC monitor the
extent to which all of its outside firms hire and promote women and
minorities.
In late 1989, the RTC filed the largest financial institution fraud case in
history. Action was taken against various principals of Lincoln Savings and
Loan Association of Irvine, California, and its parent, American
Continental Corporation, Phoenix, Arizona, under the Racketeer-Influenced
and Corrupt Organizations Act (RICO). Pursuing perpetrators of fraud and
malfeasance is a high priority of the agency. Efforts are being made to
ensure that those most at fault for the failure of an institution pay their
fair share of the cost.
The unique legal issues confronting the RTC, and the mammoth
workload of resolutions and asset disposition, will provide challenges well
beyond 1990.C

The RTC has
assumed responstbiHty
y b r o v e r 5 0 ,0 0 0

OFFICES OF THE RESOLUTION TRUST CORPORATION
OFF7CE OF RESEARCH AND STA77S77CS
The Office of Research and Statistics serves as the research and
planning arm of the RTG. It supports the activities of the RTGs
Resolutions and Operations, Asset and Real Estate Management, and
Finance and Administration Divisions, providing economic, financial, and
statistical analysis for their operations. The branch also provides the
Executive Director and the operating divisions with economic analysis of
policy issues facing the RTG.
The work of the office is carried out by three sections. The Financial
Modeling and Statistics Section develops financial models for a variety of
purposes, prepares data on RTG activities for dissemination within RTG
and to the public, and works with management information systems
groups within the RTG and in other agencies. The projects in which the
section is engaged include projecting long-term RTG cash flow needs,
developing the methodology for the review of 1988 FSLIG transactions
mandated by F1RREA, enhancing asset evaluation reviews, preparing
public information packages for distribution to potential bidders in case
resolutions, and preparing the RTG Review, a monthly publication that
provides data and other information on RTG activities.
The Programs and Policy Section is involved in the economic analysis
of public policy issues. The section participates in the preparation and
coordination of Congressional testimony, provides liaison with the RTG
Oversight Board on the RTC strategic plan and implementation
procedures, and undertakes special projects as assigned. The latter
include a detailed study of open bank assistance from the 1930s to the
present, preparing a briefing book on the RTG, and developing the
methodology for determining resolution caseload priorities.
The Financial Markets and Institutions Section provides econometric
analysis and direct support for the Asset and Real Estate Management
and Resolutions and Operations Divisions. Specific projects include
developing asset sale concepts to facilitate bulk sales, developing a model
for estimating thrift resolution losses, valuing put and call options in
analyzing bids, and analyzing incentive contracting and other contractor
performance issues.

OFF7CE OF CORPORATE COAfAf^iCATiOJVS
The enormity of its task has made the RTG one of the most closely
watched federal agencies. Hundreds of reporters, contractors, lawyers, and
other interested parties phone each day with questions on the
Corporation's policy actions and resolutions. Their point of entry is the
Office of Corporate Communications (OGC).
It is the job of the Communications office to respond to inquiries from
the media and the public quickly and accurately, and the OCC's infor
mation programs play a key role in helping to increase the
understanding of the RTGs operations and responsibilities.
The demand for information has been particularly heavy because the
RTG is a newly created federal agency, so the media's learning process
had to start from the beginning. From the day FIRREA was signed into
law, reporters were clamoring for details about the structure of the
Corporation and its plans for achieving its statutory objectives of closing
hundreds of failed S&Ls and selling billions of dollars in assets acquired
from those institutions.

In the RTC's first five months, thousands of questions and information
requests were received from radio, TV, and print reporters at news
organizations around the country. Information is gathered and
disseminated in response to more than 150 media calls a day, requests for
speakers to appear at privately sponsored functions are evaluated, and
press interviews with Executive Director Cooke and other key RTC
officials are scheduled.
The Washington Communications office handles inquiries on RTC
policies and procedures from the national news media and industry trade
publications. It also issues all RTC press releases.
OCC also maintains a public information staff in each of the RTC's four
regional offices. Their main responsibilities are to serve as regional
spokespersons for the RTC, and to coordinate media relations on-site
when the RTC places savings institutions into conservatorship or
receivership.
Providing information on individual case resolutions is one of the major
functions of the Communications office. Many of the nearly 100 press
releases issued in 1989 concerned conservatorship or receivership trans
actions. Initial distribution is done by facsimile transmission (fax), which
enables the OCC to notify other regulatory agencies, news wire services,
and local newspapers immediately after a savings association is acquired
or closed. Press releases are made available for pickup, and any
consultants, law firms, and other interested parties are placed on the
RTC's mailing list for all press releases. The office is currently testing
vendor fax systems to enhance transmission service to the media and is
examining private services that could be used to expedite access to press
releases by nonmedia businesses that want immediate access to al]
materials issued by the Communications Office.
Other OCC activities include writing and editing copy for various
publications and RTC operations, editing copy for advertisements that
announce solicitations for prospective bidders and contractors, scheduling
press briefings, and producing the RTC's Annual Report.
OFFiCE OF Bt/DGET
The Office of Budget coordinates and oversees the RTC's ongoing
budget process. This includes budget formulation, budget execution,
program planning, and performance planning and measurement. Since
the RTC was still in its formative stages during most of the latter part of
1989, estimates were based on a top-down analysis of operations and
resource requirements. This method of budget formulation takes into
consideration planned organizational structure and supporting staff levels,
historical experience from the FDIC, and detailed analysis of the cost of
RTC operations. These estimates can change markedly as a result of
many unpredictable variables. Types of resolutions (clean bank, whole
bank, etc.), types and amounts of assets passed to the RTC, and time in
liquidation of certain assets are all difficult to predict and can have a
significant effect on the budget amounts. Because of this, and because
the basic organizational structure of the RTC is still subject to change,
only quarterly administrative expense budgets have been prepared thus
far for the RTC. Annual budgets will be prepared in greater detail after
more operational experience is gained and when various policy issues are
settled. All budgets are presented to the RTC Board of Directors for
approval.

Several initiatives are being considered that will enhance budget infor
mation available to managers and will refine the process of formulating
and executing the budget for the RTG.
Function#/ Budget. To provide senior management with information
necessary to manage resources efficiently and effectively, the budget is
divided along many lines. Breakdowns by organization and location are
available, as well as by program and function, to provide managers with
data that cross organizational boundaries. The functional budget is an
important addition because it is organized based on corporation functions
such as asset management, resolutions, contracting, operations, information
services, and investigations. The functional budget will help highlight all of
the Corporation's important activities.
NexiMe Expense Budget. Since 80 percent to 90 percent of the RTC's
work will be contracted to the private sector, as much as two thirds of the
RTG budget will be directly related to asset workload. This workload is
difficult to predict, but relationships between workload and expenses have
been established that can be used to provide budget estimates that vary
with different workload levels. This flexible expense method of budgeting
will play a more important role in the RTG as more sophisticated
estimating techniques are employed, and as the Corporation becomes
more experienced with operations. By using a flexible expense budget, the
RTC will avoid fixed ceilings on expenditure amounts that may hinder the
pace of operations, and the RTG will have the flexibility to move quickly
to resolve institutions and dispose of assets.

OFFiCE OF PROGRAM AJVAtrSfS
The Office of Program Analysis (OPA) is responsible for providing
functional oversight and analysis of RTG activities for the Corporation's
Executive Director. OPA advises senior management on divisional goals
and strategies developed to implement FIRREA and the RTC Strategic
Plan. Major programs are reviewed to ensure that statutory requirements
are addressed and the programs, as designed, are meeting objectives effi
ciently. Special ad hoc reviews are also performed on request to address
the particular needs of senior management. The office is also responsible
for coordinating all information requests from the General Accounting
Office and the Office of the Inspector General. These requests are
analyzed to determine the appropriate action that should be taken.
The office's activities are administered through the Resolutions and
Operations and the Asset and Real Estate Operations Sections, which
perform operational reviews and special projects at selected field
locations and in the regional, consolidated, and Washington offices. These
reviews, which assess how the RTC programs and policies are being
implemented and followed, provide senior RTC management with a
means of further evaluating the effectiveness of established divisional
goals.

OFFiCE OF LEGiSLAWVE AFFAiRS
The Office of Legislative Affairs (O LA) serves as the RTC's Gongres
sional liaison, advises the Board of Directors on legislative issues, coor
dinates the drafting of proposed legislation, prepares testimony, and
responds to inquiries from Congress on legislative and other matters.

OLA coordinates answers to correspondence and telephone inquiries
from Congressional offices with other RTG divisions and offices before
providing timely replies. In the five months since the RTG was
established, OLA has also prepared testimony for numerous appearances
by Chairman Seidman, Executive Director Cooke, and other RTG officials
before Congressional committees, beginning with its first Congressional
appearance on October 4, 1989. To promote legislation and assist with
oversight functions important to the RTG's operations, OLA meets with
members of Congress and their staffs to provide them with information
relevant to their legislative duties. During 1989, these briefings averaged
13 a month.
OEEfCE OF 7WE EXECt/TYVE SECRETARF
The core responsibilities of the Office of the Executive Secretary (OES)
are to provide public notice of meetings of the RTG Board of Directors,
record all votes and prepare minutes of the meetings, and maintain the
RTC's corporate records. In 1989 the OES also acted as corporate
secretary for two RTG standing committees on management and asset
disposition.
In 1989 the Executive Secretary's staff reported to the FDIG Office of
the Executive Secretary. In 1990 the RTG's Office of the Executive
Secretary will operate independently of the FDIC. One early priority for
RTC Executive Secretary was to hire a staff and develop the necessary
procedures and support systems to operate independently. By yearend
these important structural components were in place.
From August through December, the RTC Board of Directors held 21
meetings — five open to the public and 16 closed. In those sessions a
total of 90 Board actions were considered, 41 of which involved
resolution or conservatorship actions on individual savings associations.
Many of the basic issues of policy and structure for the RTG, such as the
adoption of bylaws and ethics guidelines, were also decided during this
period.
An often overlooked but important function of OES is attesting to the
validity of documents or signatures of Corporation officers. OES
processed 398 requests this year for certification of documents. Another
function is to ensure that the RTG is in compliance with the Freedom of
Information Act (FOIA). The RTG received 149 FOIA requests from
August through December.
In 1989 the Executive Secretary moved forward with plans to establish
an RTG Reading Room, where the public will have access to all nonconfidential documents generated by the RTC without the need to undergo
the time-consuming process of filing an FOIA request. The Reading
Room will open in April 1990.
Additionally, OES began organizing a major initiative to create a
uniform, nationwide filing and records management system for the RTC.
Having such a system in place will make records management and
retrieval much simpler and increase the efficiency of the RTG. In 1989
the Executive Secretary received Board approval for the project, and
took the initial steps of soliciting bids and selecting an outside contractor
to study the RTC's records management program. A records retention
schedule is expected to be developed in 1990, and a standardized,
nationwide filing system implemented the following year.

Finally, the OES made preparations in 1989 to begin an automated
index of official actions taken by the RTG Board of Directors, and by
committees and officers of the RTG exercising authority delegated by the
Board. D

REGULATIONS

P rop osed R egulations
/^rf^po^ed ^e^rJafion on PWnctp/es of Et/nerJ CondMct /or 7W7
e x tra c to rs (Abvember 77, i9<S9)
The IHY^ and the Rfl^C Oversight Board jointly proposed a regulation that
would establish ethical standards applicable to contractors selected to
perform services for the RTG. The proposed regulation would, among other
things, prohibit contractors from performing services for the RTG if they
had caused losses of i%5(),00() or more to the federal deposit insurance
fund in certain circumstances. In addition, a contractor currently in default
on an obligation to the FDIG, the RTG, or an insured depository institution
under the jurisdiction of the RTC would also be deemed ineligible to
contract with the RTC. The proposal would replace the interim standards
adopted by the RTC Board on September 26, 1989.
Mansards o f Conduct /or R7YJ Employees (December 12,
The RTG Board of Directors proposed a regulation that would establish
standards of ethical conduct for RTC employees. The proposal is modeled
after rules applicable to Federal Deposit Insurance Corporation employees
and incorporates requirements mandated in FIRREA. The proposed rules
would, among other things, extend the prohibitions on the acceptance of
gifts, entertainment, favors, and loans by RTC employees to officers,
directors, or employees of any insured depository institution or trade
organization whose members seek to do business with the RTC. Other
limits would restrict certain types of securities investments, and prohibit
RTC employees from engaging in any other employment related to real
estate while employed by the RTC.

FmANCKAL STATEMENTS OF THE RESOLUTMN TRUST CORPORATMN
STATEMENT OF !NCOME AND ACCUMULATED DEFM !T
For the Period August 9, 1989 (Inception) through December 31, 1989 (/n f/iousands)

Revenue
Interest on advances and loans
Servicing and other revenue
Total Revenue

$
230,912
_________2,096
233,008

Expenses and Losses
Provision for losses (Note 6)
Administrative operating expenses
Other expenses

44,911,633
6,536
_________2,578

Total Expenses and Losses
Net Loss

44,920,747
(44,687,739)

Accumulated Deficit — August 9 (Inception) (Note 11)
Accumulated Deficit — December 31

See accompanying notes

(55,240,000)
$

(99,927,739)

RESOLUTION TRUST CORPORATION

STATEMENT OF F!NAN(XAL POS!T!ON
As of Decem ber 31, 1989 (7n thousands)

Assets
Cash
Advances and bans (Note 3)
Net subrogated claims (Note 4)
Other assets (Note 7)
Total Assets
Liabilities
Accounts payable, accrued liabilities and other
Liabilities incurred from assistance and failures (Note 8)
Estimated cost of unresolved cases (Note 9)
Estimated losses from corporate litigation (Note 10)

4,406,656
11,277,480
3,632,656
28,932

19,345,724

7,950
4,037
94,669,000
83,719

Total Liabilities

94,764,706

Equity
Contributed capital
Capital certificates
Accumulated deficit

18,800,000
5,708,757
(99,927,739)

Total Equity (Note 11)
Total Liabilities and Equity

(75,418,982)
$

19,345,724

See accompanying notes

R E S O L U T IO N TRUST C O R P O R A T IO N

STATEMENT OF CASH FLOWS
For the Period August 9, 1989 (Inception) through Decem ber 31, 1989 (/n thousands)

Cash Flows From Operating Activities:
Cash inflows from:
Increase in accounts payable, accrued liabilities and other
Servicing and other revenue
Receipts from subrogated claims

7,950
2,096
190

Cash outflows for:
Increase in other assets
Disbursements for advances and loans
Disbursements for subrogated claims
Administrative operating expenses
Other expenses

(28,932)
(11,046,568)
(9,027,723)
(6,536)
________ (2,578)

Net Cash Used by Operating Activities (Note 14)

(20,102,101)

Cash Flows From Financing Activities:
Cash inflows from:
18,800,000
5,708,757

Contributed capital
Capital certificates
Cash Provided by Financing Activities

24,508,757
4,406,656

Net Increase in Cash
Cash — August 9 (Inception)
Cash — December 31

See accompanying notes

4,406,656

NOTES TO RESOLUTION TRUST CORPORATION (RTC) FINANCIAL STATEMENTS

DECEM BER 31, 1989
1. Impact o f FIRREA Legislation:
y ^

J?7'6r

The Financial Institutions Reform, Recovery, and Enforcement Act o f 1989 (FIRREA) became public law on
August 9, 1989. This landmark legislation established organizations and procedures to obtain and administer
the necessary funding to resolve failed thrifts and to dispose o f the assets of these institutions. FIRREA
abolished the Federal Savings and Loan Insurance Corporation (FSLIC) and the Federal Home Loan Bank
Board (FHLBB). Their functions were transferred, in a prescribed manner, to the Federal Deposit Insurance
Corporation (FDIC), the Office of Thrift Supervision, the Federal Housing Finance Board, and the Resolution
Trust Corporation (RTC).
Under FIRREA, the R TC was established to aid in resolving the thrift industry crisis. This newly created
mixed-ownership Government corporation was tasked with replacing the FSLIC in future case resolution
activity by managing and resolving all troubled savings associations that were previously insured by FSLIC and
for which a conservator or receiver is appointed during the period January 1, 1989 through August 8, 1992.
The FSLIC Resolution Fund, a separate fund under FDIC management, will complete the resolution o f all
thrifts that failed before January 1, 1989 or were assisted before August 9, 1989. Beginning on August 9,
1992, the Savings Association Insurance Fund will replace the R TC in resolving troubled thrift institutions.
To allow the R TC to carry out its legislative mandate, FIRREA
manager, subject to removal by the RTC Oversight Board. Thus,
responsibilities o f the RTC and shall be reimbursed by the RTC
Directors o f the FDIC serves as the Board of the RTC, and the
Chairperson o f the R TC Board.

authorized the FDIC to act as exclusive
the FDIC shall carry out all duties and
for all services performed. The Board o f
Chairperson of the FDIC Board is the

The activities o f the R TC are subject to the general oversight o f the newly established Oversight Board. The
Oversight Board was created by FIRREA to oversee and be accountable for the RTC, to provide the RTC
with general policy direction, and to review and monitor the RTC's performance. The Oversight Board
consists o f five members: the Secretary o f the Treasury; the Chairman o f the Board o f Governors o f the
Federal Reserve System; the Secretary o f Housing and Urban Development; and two independent members
appointed by the President, with the advice and consent o f the Senate.
FIRREA established the Resolution Funding Corporation (REFCORP) to provide funds to the RTC to enable
the R TC to carry out its legislative mandate. The REFCORP, under general oversight of the Oversight
Board, was granted power to issue up to $30 billion in long-term debt securities, the net proceeds o f which
shall be used to purchase capital certificates issued by the R TC or to refund any previously issued obligation.
The RTC will terminate on or before December 31, 1996. All remaining assets and liabilities will be
transferred to the FSLIC Resolution Fund, with the requirement that any net proceeds from the sale o f such
assets be transferred to the REFCORP for interest payments. At the time o f the RTC's termination, the
FDIC will succeed the RTC as conservator or receiver for failed thrift activity.
y

7?7Y7.-

* Maximize return on the sale or other disposition o f institutions or the assets o f such institutions;
* Minimize the amount o f any loss from case resolutions;

* Review all insolvent institution cases resolved by the FSLIC between January 1, 1988 and August
9, 1989, exercising all legal rights to modify, renegotiate, or restructure agreements where savings
would be realized;
* Manage, and before February 9, 1990 liquidate, the Federal Asset Disposition Association; and
* Conduct all such operations in accordance with the special restrictions and objectives o f the
FIRREA as specified therein.
o/'
The R TC is funded from the following sources: 1) U.S. Treasury payments and borrowings; 2) amounts
borrowed by REFCORP; 3) the issuance o f debt obligations and guarantees as permitted by the Oversight
Board; and 4) income earned on the assets o f the RTC, proceeds from the sale o f assets, and collections
made on claims received by the R TC from receiverships, to the extent such amounts are needed for further
resolution costs (as determined by the Oversight Board).
The Secretary o f the Treasury has contributed capita! o f $18.8 billion to the R TC as o f December 31,
1989. The R TC has also issued capital certificates o f $5.7 billion to REFCORP as o f December 31, 1989
(see Note 11). The R TC is also authorized to borrow from the Treasury an amount not to exceed in the
aggregate $5.0 billion outstanding at any one time. As o f December 31, 1989, the R TC had no borrowings
outstanding.
Beginning in 1990, working capital will be made available to the RTC under an agreement between the
R TC and the Federal Financing Bank. The working capital will be available to fund the resolution o f thrifts
operating as conservatorships and for use in the RTC's high-cost funds replacement and emergency liquidity
programs. These borrowings, approved by the Oversight Board, are to be within the maximum obligation
limitation.

The FIRREA transferred all o f the assets and liabilities of the now defunct Federal Savings and Loan
Insurance Corporation (FSLIC) to the FSLIC Resolution Fund (FRF), except for the $55.2 billion liability for
estimated losses on unresolved cases, which became a liability o f the R TC and resulted in R TC reporting an
accumulated deficit at August 9, 1989 (inception) (see Notes 6 and 11).
The FIRREA requires that the assets, liabilities and equity of the R TC be maintained separately, and not be
consolidated with any fund for accounting purposes. As mandated by FIRREA, R TC is managing seven
receiverships that were effected by FSLIC after January 1, 1989 but prior to FIRREA. Activities o f these
entities are excluded from the financial statements o f the R TC because FRF remains financially responsible
for the losses associated with these resolution cases.

2. Summary of Significant Accounting Policies:
G^%27T%/. These statements do not include accountability for assets and liabilities o f closed thrifts for which
the R TC acts as receiver or liquidating agent.
y&r Law
The R TC records as assets the amounts advanced for assisting and
closing thrifts. An allowance for loss is established against subrogated claims representing the difference
between the amounts advanced and the expected repayment, based on the estimated cash recoveries from the
assets o f the assisted or failed thrift, net o f all estimated liquidation costs.
C<vf
C&MF. The R TC has recorded the estimated losses related to thrifts in
conservatorship and those identified in the regulatory process as probable to fail.
The R TC recognizes an estimated loss for litigation against it in its Corporate,
36

conservatorship and receivership capacities. The RTC's Legal Division recommends these estimated losses on a
case-by-case basis.
The cost of furniture, fixtures, equipment, and other fixed assets is expensed at time of
acquisition and reported in the administrative operating expenses. This policy is a departure from generally
accepted accounting principles, however, the financial impact is not material to the RTC's financial
statements.
The RTC considers cash equivalents to be short-term, highly liquid investments with
original maturities of three months or less. As o f December 31, 1989, the RTC did not have any cash
equivalents.
3. Advances and Loans (in thousands):
This line item includes both secured advances and loans made to conservatorships and receiverships by the
RTC. The Corporation accrues interest on these advances and loans which is included in the Statement of
Income and Accumulated Deficit. The Corporation expects repayment o f these advances and loans before any
subrogated claims are paid by receiverships.
December 31, 1989
Secured advances from conservatorships
Secured advances from receiverships
Loans to receiverships
Accrued Interest

10,077,033
863,934
105,601
230,912

11,277,480

4. Net Subrogated Claims (in thousands):
Subrogated claims from failures represent those disbursements made by the RTC for depositor liabilities. The
Corporation recognizes an estimated loss on these subrogated claims.
December 31, 1989
Subrogated claims
Claims o f depositors pending and unpaid
Allowance for Losses

9,028,383
3,187
(5,398,914)
3,632,656

5. Analysis o f Change in Allowance for Loss from Receiverships
(in thousands):
Balance
August 9,
1989
(Inception)
Due from Receiverships

Provision
for
Losses
-0-

Transfers
and
Adjustments
$

5,398,914

Balance
December 31,
1989
$

5,398,914

Transfers and adjustments represent amounts transferred from the liability for the estimated cost of unresolved
cases to the allowance for loss for subrogated claims as a result of case resolutions.

6. Analysis o f Change in Estimated Cost o f Unresolved Cases and Losses from Corporate Litigation (in
thousands):
Balance*
August 9,
1989
(Inception)
Estimated cost o f
unresolved cases
Estimated losses from
corporate litigation

55,240,000
-

Provision
for
Losses

83,719

35,240,000

44,827,914

Transfers
and
Adjustments

44,911,633

(5,398,914)
-

Balance
December 31,
1989

94,669,000
83,719

(5,398,914)

94,752,719

The estimated cost o f unresolved cases includes amounts transferred to the allowance for loss for subrogated
claims as a result o f case resolutions.
* Transferred from FSLIC upon its dissolution as required by the FIRREA.
7. Other Assets:
The following are the components o f other assets (in thousands):
December 31, 1989
Reimbursements due from receiverships
and conservatorships for operating expenses
Miscellaneous assets

27,979
953
28,932

Reimbursements due from receiverships and conservatorships for operating expenses represent amounts paid by
the R TC on behalf o f the receiverships and conservatorships for which full repayment is expected.
8. Liabilities Incurred From Assistance and Failures:
The following are the major components from liabilities incurred from assistance and failures (in thousands):
December 31, 1989
Pending Claims o f depositors
Other

3,187
850

4,037

9. Estimated Cost o f Unresolved Cases:
The R TC has established a liability o f $94.7 billion for the future cost of resolving troubled thrifts already
in conservatorship and those identified in the regulatory process as probable to fail. The liability recorded is
the amount that is probable and can be reasonably estimated as o f December 31, 1989. The liability for
unresolved cases was estimated using RTC's cost test methodology. The estimate was based on the
assumption that all unresolved cases would be resolved through a pay-out liquidation and that losses on net
assets would occur at the same rate as losses experienced on actual resolutions. This estimated cost is based
upon loss rates for resolutions completed through June 1, 1990. As o f September 30, 1990, the liability for
the estimated cost o f unresolved cases totaled $67.6 billion.
38

In addition, there are other open institutions from which losses to the R TC are reasonably possible. The
losses from those institutions may range as high as $18 billion.
10. Estimated Losses from Corporate Litigation:
As o f December 31, 1989, the RTC has been named in numerous legal or administrative actions while
serving in its Corporate, conservatorship or receivership capacities. Currently, it is not possible to predict the
outcome for all of the various actions. A provision totalling $83.7 million has been made for those actions
that management feels will result in a probable loss. It is management's opinion that the outcome for the
remaining actions, while not determinable, will not result in liabilities to such an extent that they will
materially affect the Corporation's financial position.
11. Changes in Equity:
Equity for the R TC is as follows (in thousands):

Contributed
Capital
Balance August 9, 1989
(Inception)
Net Loss
Treasury Payments
Issuance of Capita]
Certificates
09/22/89
10/30/89
Balance
December 31, 1989

-0-018,800,000

Capital
Certificates
$

-0-0$

18,800,000

-0-0-0-

Accumulated
Deficit
$

5,708,757

-0-0-

1,200,000
4,508,757

(55,240,000)
(44,687,739)
-0-

Total
Equity

(99,927,739)

(55,240,000)
(44,687,739)
18,800,000

1,200,000
4,508,757

(75,418,982)

12. Pension Plan and Accrued Annual Leave
The FDIC eligible employees assigned to the R TC are covered by the Civil Service Retirement System
(CSRS) and the Federal Employees Retirement System (FERS). Matching employer contributions provided by
the RTC for all eligible employees were approximately $676,000 for the period August 9, 1989 through
December 31, 1989.
Although the R TC contributes a portion of pension benefits for eligible employees and makes the necessary
payroll withholdings from them, the R TC does not account for the assets of either o f these retirement funds
and does not have actuarial data with respect to accumulated plan benefits or the unfunded liability relative
to its eligible employees. These amounts are reported by the U.S. Office o f Personnel Management (OPM)
and are not allocated to the individual employers. OPM also accounts for all health and life insurance
programs for retired eligible employees.
The RTC's liability to employees for accrued annual leave is approximately $2,352,000 at December 31,
1989.
13. Commitments and Guarantees:

The RTC is currently leasing office space to accommodate its staff. The RTC's lease agreements for office
space are approximately $97,311,000. The minimum yearly rental expense for all locations is as follows (in
thousands):

1990

1991

1992

1993

1994

1995/Thereafter

$ 9,216

$ 8,517

$ 8,532

$ 8,390

$ 8,414

$ 54,242

Guarantees o f RTC:
Guarantees made by the FSLIC from January 1, 1989 through enactment o f FIRREA became guarantees o f
RTC. There were three such guarantees made by FSLIC to the Federal Home Loan Banks (FHLBs) payable
in the event an identified institution defaults on its loan payments to the FHLBs. These guarantees involved
institutions which have already been placed into conservatorship. The total amount contingently payable is
$121 million. However, no losses from these arrangements are anticipated by management.

14. Supplementary Information Relating to the Statement of Cash Flows (in thousands):
Reconciliation o f net loss to net cash used by operating activities:

For the Period
August 9, 1989 (Inception)
Through
December 31, 1989
$ (44,687,739)

Net Loss:
Increase in accounts payable,
accrued liabilities and other
Increase in other assets
Provision for losses
Disbursements for advances and loans
Disbursements for subrogated claims
Accrued interest from assistance and failures
Receipts from subrogated claims

7,950
(28,932)
44,911,633
(11,046,568)
(9,027,723)
(230,912)
190

Net cash used by operating activities

$ (20,102,101)

Schedule o f non-cash transactions incurred from thrift assistance and failures (in thousands):

For the Period
August 9, 1989 (Inception)
Through
December 31, 1989
Increase (decrease) in subrogated claims from failures:
Outstanding depositor claims paid
Depositor claims unpaid
Transfer of allowance for loss

850
3,187
(5,398,914)

Decrease (increase) in liabilities incurred from assistance and
failures:
Outstanding depositor claims paid
Pending claims of depositors

(850)
(3,187)

Estimated cost of unresolved transfer

5,398,914
$

-0-

GAD

United States
Genera! Accounting Office
Washington, D C. 20548
ComptroUer Genera!
of the United States

B-240108

To the Board of Directors
Resolution Trust Corporation

We have audited the accompanying statement of financial
position of the Resolution Trust Corporation as of
December 31, 1989, the related statement of income and
accumulated deficit, and the statement of cash flows for
the period August 9, 1989, through December 31, 1989.
These financial statements are the responsibility of the
Corporation's management.
Our responsibility is to express
an opinion on these financial statements based on our
audit.
In addition, we are reporting on our consideration
of the Corporation's internal control structure and on its
compliance with laws and regulations.
We conducted our audit in accordance with generally
accepted government auditing standards.
Those standards
require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements
are free of material misstatement.
An audit includes
examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements.
An audit also
includes assessing the accounting principles used and
significant estimates made by management, as well as
evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for
our opinion.
However, as discussed in the following
paragraphs, the Corporation's estimated liability for
unresolved institutions and its estimated recovery from
receiverships for claims paid on behalf of depositors are
subject to significant uncertainties that limited our
audit and precluded us from opining on these reported
balances.
The Corporation developed a standard methodology in June
1990 to estimate its liability for the cost of unresolved
institutions.
The methodology was consistently applied and
used the best information available at the time.
However,
the actual cost to the Corporation for future resolution

B -2 4 0 1 0 8

actions will depend on the outcome of various
uncertainties, including the number of institutions placed
into conservatorship prior to August 9, 1992; the extent of
these institutions' continuing operating losses; the
quality and salability of each institution's assets; and
the condition of the economy, especially in certain
geographic locations.
As a result of these uncertainties,
the Corporation's estimated liability for unresolved
institutions is subject to significant change and final
costs could be much higher than estimated.
For institutions already resolved, the Corporation has
paid out funds required to settle depositor claims to
either the depositors themselves or acquirers of the
institutions.
However, the Corporation expects to recover
some portion of those paid claims (subrogated claims)
through the sale of the failed institutions' assets that
remain in Corporation receiverships.
To develop its
estimated net receivables from paid claims, the Corporation
calculated the estimated market value of assets held in
receivership less the associated costs of holding those
assets for sale.
The Corporation calculated asset recovery
values based on appraisal and review processes.
Because it
had only been in existence for 5 months, however, the
Corporation lacked historical asset sales experience with
which to evaluate the accuracy of the resulting recovery
estimates.
Also, the Corporation's short operating life
had not provided it with sufficient asset management
experience to serve as the basis for estimating holding
costs.
Most important, the Corporation had never examined
receivership inventories on an individual asset basis;
instead, all valuation decisions had been based on samples
of assets taken prior to the resolution process.
As a
result, the expected recovery value of assets in
receivership could be significantly overstated.
The
current recessionary economy and the depressed real estate
market are also likely to negatively affect asset recovery
values.
In our opinion, except for the effects that the
uncertainties discussed in the preceding paragraphs may
have on the cost of unresolved institutions and the
expected recoveries from resolved institutions, the
financial statements referred to above present fairly, in
all material respects, the financial position of the
Resolution Trust Corporation as of December 31, 1989, and
the results of its operations and its cash flows for the

B -2 4 0 1 0 8

period then ended, in conformity with generally accepted
accounting principles.
As discussed in note 1, the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 was enacted
on August 9, 1989.
FIRREA, which created the Resolution
Trust Corporation, responded to the savings and loan
industry crisis and the mounting losses of the industry's
insurer by abolishing the Federal Savings and Loan
Insurance Corporation (FSLIC) and transferring its
functions to several newly established entities.
FSLIC's
insurance function was transferred to the Savings
Association Insurance Fund, which is administered by the
Federal Deposit Insurance Corporation (FDIC).
The new
insurance fund will be responsible for assisting and
resolving troubled thrifts after August 9, 1992.
FIRREA created the FSLIC Resolution Fund to accept the
assets, debts, obligations, contracts, and other
liabilities resulting from FSLIC's resolution activity
prior to January 1, 1989.
FDIC is responsible for
administering the FSLIC Resolution Fund to ensure that its
assets are sold and liabilities paid.
FIRREA created the Resolution Trust Corporation to resolve
the problems of failed thrift institutions previously
insured by FSLIC and placed into conservatorship or
receivership from January 1, 1989, until August 9, 1992.
The Corporation's newly established Oversight Board, under
the chairmanship of the Secretary of the Treasury, has
overall responsibility for the Corporation's activities.
FDIC carries out the Corporation's duties and
responsibilities and is reimbursed by the Corporation for
all services performed.
FIRREA provided the Corporation with $50 billion to resolve
failed savings institutions and to pay its administrative
expenses.
Through December 31, 1990, the Corporation had
used $37 billion of the $43 billion then available to pay
the losses of 352 failed institutions.
However, resolution
cost estimates prepared by the Corporation and its
Oversight Board indicated that between $89 billion and

4.1

B -2 4 0 1 0 8

$132 billion on a present value basis would eventually be
needed to close a total of 700 to 1,000 failed
institutions.1
In January 1991, the Corporation received the last
$7 billion available under FIRREA for resolutions.
Although the Corporation has slowed down marketing and
resolving institutions, it does not expect these funds to
last beyond March 1991.
The Corporation has stated that
without more funds, all resolution activity would cease.
Accordingly, in January 1991, the Oversight Board appeared
before the Congress to request an additional $30 billion to
resolve approximately 225 institutions before the end of
fiscal year 1991.
The Oversight Board indicated its
preference for permanent funding authority since that would
allow the Corporation to pursue its mandate aggressively
and without costly interruption.
We have no reason to disagree with the Board's stated need
for more funds through the end of this fiscal year, and we
expect that the Corporation will require substantial
additional funds in fiscal year 1992.
However, we do not
agree with the Oversight Board on the best way to provide
those funds.
In our February 1991 testimony before the
House Committee on Banking, Finance and Urban Affai r s , 2 we
stated that a permanent and indefinite appropriation would
effectively eliminate the existing controls over the
Corporation's obligational authority contained in FIRREA.
We expressed the belief that it is important to retain
control mechanisms already in place and functioning.
Therefore, we support providing sufficient funds annually
to cover the Corporation's resolution needs for that year.
This would allow the Corporation to efficiently plan its
workload to avoid costly slowdowns in resolution activity,
and would retain existing congressional oversight control

iThe Oversight Board calculated its cost estimate range in
May 1990.
In January 1991 testimony before the Senate
Banking Committee, the Oversight Board stated that its
present value cost range was still valid; however, due to
the recent economic downturn and the war in the Persian
Gulf, the most likely cost scenario has moved to the
higher end of the range.
^Resolution Trust Corporation:
Performance Assessment to
Date (GAO/T-GGD-91-71 February 20, 1991).
4

B -2 4 0 1 0 8

mechanisms.
As stated in our testimony, we believe that a
yearly appropriation, provided on-budget and linked with
the Oversight Board reporting requirements, is the best
funding alternative.
FIRREA's obligation limit would have
to be revised to reflect the Corporation's funding through
the annual appropriation process, since currently it is
linked to the $50 billion originally designated for
unrecoverable losses.
On March 13, 1991, the House approved a bill providing the
Corporation with an additional $30 billion to cover
depositor claims at hundreds of failed institutions.
The
Senate had approved similar legislation a week earlier.
Before the Corporation can receive any of these funds,
however, the House and Senate must reconcile some
relatively minor differences in the bills.
The following sections of this report provide details on
the Corporation's liability for unresolved institutions and
its expected recoveries from resolved institutions.
In
addition, our report on the Corporation's internal control
structure provides additional information on its ability to
produce reliable estimates for the expected recovery value
of assets in both resolved and unresolved institutions.
ESTIMATED LIABILITY FOR
UNRESOLVED INSTITUTIONS
The Corporation's estimated resolution liability is subject
to many uncertain factors and future events that are
likely to make actual costs higher than projected.
At
December 31, 1989, the Corporation accrued a $95 billion
liability for resolving approximately 650 troubled
institutions already in conservatorship or identified in
the regulatory process as probable to fail.
To estimate
this liability, the Corporation assumed that all troubled
institutions would be resolved on December 31, 1989, by
directly paying off depositor claims.
The Corporation also
assumed that recovery rates for subsequent asset sales
would be the same as those calculated for resolutions
already performed.
However, some of the Corporation's assumptions may not hold
true and future events may cause asset values to decline.
For example, the number of institutions requiring
resolution could increase significantly.
At September 30,
1990, approximately 350 institutions not included in the

B -2 4 0 1 0 8

Corporation's liability had capital levels of less than
3 percent and were operating unprofitably.
As the
Corporation discussed in footnote 9 to its financial
statements, some or all of these institutions could require
resolution at an additional cost to the Corporation of as
much as $18 billion.
Also, the market values of
Corporation-held assets might continue to decline,
thereby reducing the amount recovered at sale.
Although
the Corporation assumed asset writedowns of 20 percent to
34 percent based on estimates calculated for institutions
resolved through May 1 9 9 0 , worsening economic conditions
could result in higher losses.
Finally, delays in closing
troubled thrifts could result in significant continuing
operating losses that must be funded at the time of
resolution.
By not including operating losses in its
liability calculation, the Corporation has increased the
likelihood that actual resolution costs will exceed its
estimate.
ESTIMATED RECOVERIES
ON PAID CLAIMS
Because the Corporation had not, at the time of our review,
either examined all assets remaining in its receiverships
or valued each asset based on actual sales experience, it
may have overstated its expected recoveries from depositor
claims paid.
At December 3 1 , 1 9 8 9 , the Corporation had
resolved 37 failed savings institutions requiring
disbursements of $9 billion for depositor liabilities.
Although the Corporation has a subrogated claim for the
entire disbursement amount against the failed institutions'
assets remaining in receivership, the Corporation estimated
that it would recover less than $4 billion from the sale of
those assets.
The Corporation calculated asset recovery
values based on the results of reviews conducted in each
conservatorship institution prior to resolution.
As part
of these valuation reviews, the conservatorships' assets
were categorized according to type and performance (for
example, performing mortgage loans, nonperforming consumer
loans, and real estate owned.)
Based on the size of the
institution, reviewers were required to sample certain
dollar amounts and numbers of assets within the categories.
The reviewers developed expected recovery values for the
sampled assets using recent appraisals or following
Corporation guidelines.
Those rates were then projected to
unreviewed assets.
Upon resolution, an institution's asset
valuation review became the basis for determining the

B -2 4 0 1 0 8

recovery value of the assets remaining in Corporation
receiverships.
Although the Corporation provided the reviewers with
general guidelines to follow in determining expected
recoveries, it had no historical experience in asset sales
with which to evaluate the mark-to-market adjustments
resulting from reviews and appraisals.3 The Corporation
also lacked experience in asset management with which to
evaluate the estimated cost of holding assets for sale.
In
addition, receivership asset inventories were valued based
on samples chosen prior to the acquirer taking the "good"
assets at resolution and leaving the "bad" assets to be
handled by the Corporation.
By continuing to apply
recovery rates based on a certain proportion of both good
and bad assets, the Corporation could be significantly
overstating the value of the assets remaining in
receivership.
Without reviewing each individual asset
under receivership control, the Corporation cannot
determine an asset's condition or set a realistic price for
its sale.
As discussed, the Corporation's actual recoveries on paid
claims could be lower than estimated if receivership
assets are found to be more impaired than anticipated.
Also, higher than expected contract management fees or
"fix-up" costs would increase losses.
However, the
greatest unknown is the future health of the economy,
particularly in geographic areas with large real estate

^To address this concern, we recommended in our report
Obligations Limitation:
Resolution Trust Corporation's
Compliance as of March 31, 1990 (GAO/AFMD-90-101, July 27,
1990) that the Corporation institute a system to track and
report the actual results of asset sales.
In response,
the Corporation stated that it is developing a
Receivership Asset Inventory System that will have some
reporting capability by March 31, 1991.
7

B -2 4 0 1 0 8

asset portfolios for sale.
If the economy continues its
slowdown, asset sales could bring in significantly less
than expected.

Charles A. Bowsher
Comptroller General
of the United States
December 14,

1990

STATISTICS

RTC CONSERVATORSHIPS (August 9, 19<39

State

Associations
Ptaced

Conservatorship

into
Conservatorshtp

Conservatorship

August 8, 1989
5

A LASKA

2
5

A RKA N SA S
C A U FO RN iA

12
22

COLORADO
C O N N EC TiC UT

FLO R ID A

1
13

GEORGIA

ILLIN O IS

^9W)

Associations
in

A LABA M A
AR!ZO NA

/Jecemher

Associations

Resolutions

P&AID T

Payout

December 31, 1989

Total

1
2
5

3
2
1
1

19
13
2

2
1

3
1

11
4

INDIANA

IOWA

13
27

2
14

2
2

KANSAS
LO UISIA N A
M A RYLA N D
MICHIGAN
M IN N ESO TA

5
6
5

N EW J E R S E Y

N E W MEXICO

N E W YO RK

6
1

OHIO
O KLAHO M A

3
4

PEN N SYLV A N IA

S O U TH CARO LINA

1
5

VIRGINIA

3
2

W A SH IN G TO N

W ISC O N SIN

W YO M ING

5
6
1
1

8
3

1
1
5

82
3
4

1
2
1

262

1
3

N O TE: P&A indicates a purchase and assumption transaction and iD T indicates an insured deposit transfer.
Prepared by R TC Anatysis

6
4

N O RTH C ARO UNA

TOTALS

3
2
1

M IS S IS S IP P I

TE X A S
U TA H

M ISSO U R I
N EB R A SK A

TE N N E SS EE

2
1

281

NEW RTC CONSERVATORSHIPS (August 9, J9<S9 iArougA December JJ, J9<S9) (DoAfar amounts in thousands)
At Date of Conservatorship
Date of
Conservator
No.

ship

83,929
100,220
45,908
1,939

41,246

3,158
1,929
32,409

17-Aug

6
7

17-Aug
17-Aug

17-Aug

9
10
11

17-Aug
24-Aug
24-Aug

07-Sep

Heritage S& L, Jerseyvitte, )L
Citizens S & LA of Springfietd, Springfietd, tL

13
14

14-Sep
21-Sep

F irst FS& LA . Laredo, TX

180,864

161,733

5,047

Firs t Gartand Savings Association, Gartand, TX

136,180

103,135

11,227

21-Sep

Piano S& LA , Ptano, TX

283,008

248,982

16,093

F irst Savings Association of Brenham, Brenham, TX
East Texas S& LA . Tyter, TX

149,114

134,137

18,033

21-Sep
21-Sep

334,194

206,033

18
19

28-Sep
05-0ct

Coiorado Federat Savings Bank, Sterting, CO
American Home S& LA , Edmond, OK

11,940

12,418

23,672
3,352

20
21

05-0ct
13-Oct

Famiiy Federa) Savings Bank, Saputpa, OK

97,743
53,916
100,255

79,131
52,815

5,047
9,571

89,795

8,937
25,457

23
24

16-Oct
19-Oct
19-Oct

25
26
27

19-Oct
19-Oct
19-Oct

28
29
30

Security S& LA , FA, Peoria. )L
Taytorbanc Savings Association, Ta y to r, TX
Biack Hawk FS& LA , Rock tstand, tL
Denton Savings Association, Denton, TX

Cotumbia Homestead Association. Metairie, LA
Banc towa Savings Bank, Cedar Rapids, iA

27.265
53,068
28,831
327,156
149,812
73,248
169,400
31,693
92,048

Accounts

Guadatupe S& LA , Kerrvitte, TX
Southside S& LA , Austin, TX
Heame Buitding & Loan Association, Heame, TX

794,352
1,879,301
835,595

608,025
1,466,539
672,480
16,277

10-Aug
10-Aug

Peoptes Heritage F S& LA , Satina, KS
Metropotitan Financia) Savings & Loan, Dattas, TX

Deposits

1
2
3
4

10-Aug
17-Aug

U n ifirst Bank for Savings, FA. Jackson, M S

Number of

Gross
A sse ts

Name of institution & Location

25,535
227,745
149,756
68,088
146,342
29,264
79,296

16,252
9,314
12,709
5,558
9,054

165,339
298,392
559,132
781,094

139,796
263,246
536,306
587,188

86,122

298,114

244,529

21,100

Seasons Savings Bank, F S B , Richmond, VA

264,530

14,121

26-Oct

Great Ptains F S & LA of Weatherford. Weatherford, OK

115,584

212.550
72,082

02-Nov

F irst Louisiana F SB , Lafayette, LA

168,690

104,557

8,363
11,699

09-Nov
09-Nov

129,504
329,134

17,515
39,936

09-Nov

Crest Savings, Kankakee, tL
Cotoniat Savings Bank, SLA . Rosette Park, NJ
Aspen S& LA , Aspen. CO

144,976

31
33
34

09-Nov
09-Nov

Saratoga S& LA , San Jose, CA
Fidetity FS& LA , Gaiesburg, tL

35
36
37

16-Nov
16-Nov
16-Nov

First S & LA of Centra) tndiana. Anderson, tN
Sooner FS& LA . Tutsa, OK

38
39

16-Nov
16-Nov

40
41
42
43
44
45
46
47

30-Nov
30-Nov
30-Nov

48
49
50
51
52

30-Nov
30-Nov
30-Nov
30-Nov
07-Dec
07-Dec
07-Dec
08-Dec
08-Dec
14-Dec

53
54

14-Dec
14-Dec

Peopie's Homestead F S for Savings, Monroe. LA
Vattey FS& LA , McAiten. TX
Mid Kansas F S & LA of Wichita, Wichita, KS
Surety Savings Association, Et Paso, TX

Security FS& LA . Garden Grove. CA
Texas W estern FS& LA , Houston, TX
Genera) Bank, A Federat Savings Bank. Miami, F L
Brookstde S& LA , Los Angetes, CA
Southwestern S& LA , Et Paso, TX
Fortune Financia), A Savings & Loan tnstitution. Copperas Cove, TX
Security Federat Savings Bank, Cotumbia, SC
Austin Savings Association, Austin, TX
First Guaranty S& LA , GiHette, W Y
Satamanca FS& LA , Satamanca, NY
The Garnett S& LA . Garnett. KS
Community F S& LA , Bridgeport, CT
Artington Heights FS& LA , Artington Heights, tL
Attantic Permanent Savings Bank F SB , Norfotk, VA
City Federat Savings Bank. Bedminster. NJ
Louisiana Savings Association, Lake Chartes. LA
Yorkridge-Catvert S& LA , Battimore, MD

21-Dec

Red River S& LA , Coushatta, LA
Sitver S& LA , A Federa) Association, Stiver City, NM

21-Dec

Cotumbia Savings Association, Nassau Bay, TX

TOTALS

56 institutions

Prepared by RTC Anatysis

449,849
153,002
110,795

104,422
96,848

32,513
47,761

5,704
2,608
64,413
25,699

401,638
199.473

359,748
175,633

1,564,512
74,077
112,004

1,136,176
74,687
91,020
291,149

172,728
5,853

572,775

18,734

359,365
630,481
131,007
86,220
770,574
109,250
23,509
30,388
18,178
61,341
526,009
590,397
9,702,243
459,211
585,265

9,103
47,360

114,596

6,790

73,730
667,765
84,699
21,424
29,870
17,551
48,924
402,038
359,329
6,949,856
394,545

4.626
81,360
2,872
2,256
3,924
3,485
2,292
66,979
29,153
829,280
50,470

363,968
8,005

57,814
927

11,073
33,524
74,709

26,519
71,703

6,176
1,874

$25,872,928

$19,774,644

2,230,425

!NST!TUT!ONS !N CONSERVATORSH!P (as o/August ^ i9^9) (Do77ar amounts in thousands)
At Date of Conservatorship

No.

Date of Con
servatorship
1989

Gross
Name of institution & Location

07-Feb

2
3
4

07-Feb
07-Feb
07-Feb

10-Feb

Bright Banc SA, Dattas, TX

6
7

10-Feb
10-Feb
10-Feb
10-Feb

F irs t Federat of Arkansas, FA, Littte Rock. AR
Deseret FS & LA , Satt Lake City, U T
Sandia F S & LA , Atbuquerque, NM
Savers F S & LA , Littie Rock, AR

8
9

Gitt SA, Hondo, TX
Freedom S& LA , A F S& LA , Tampa, F L
Battimore Federat Financial FSA, Battimore, M D
Pacific Savings Bank, Costa Mesa, CA

A sse ts

Deposits

Number of
Accounts

$1,412,921

$1,495,912

65,028

1,517,535
1,626.673

1,113,130
1,208,753

161,338
205,803

1,147,173

1,014,999
2,894,641
1,175,294
169,875

49,099
293,593
119,930
33.208

898,555

1,051,488
784,296

75,050
89,046

3,062,827
4,897,894

2,179,485
3,742,001

333,018

142,895
393,337

16,185
48,931

199.055
298,525

4,548,026
1,853,910
175,135
913,965

13-Feb

M idw est F S & LA of Minneapotis, Minneapotis, MN

14-Feb

University SA, Houston, TX

17-Feb

Cotumbia Federat Savings Bank, W estport, C T

13
14
15

17-Feb

Guaranty F S& LA , Birmingham, A L

153,076
405.270

17-Feb
17-Feb

Equitabte Federat Savings Bank, Fremont, N E
North Jersey S& LA , Passaic, NJ

223,691
330,599

339,620

17-Feb

Etysian Federat Savings Bank, Hoboken, NJ

204,977

195,534

34,983
46,060
14,818

Btue Vattey F S& LA , Kansas City, MO
Sun Savings Association, F.A., Kansas City, KS

881,784

811,507

113,760

17-Feb
17-Feb

17-Feb

20
21

17-Feb
17-Feb

French Market Homestead, FSA, Metairie, LA
Occidentat/Nebraska F S B , Omaha. NE
M idw est F S& LA , Nebraska City, NE

201,664
278,255
704,457

184,282
232,840
515,032

36,805
87,440

22
23
24

17-Feb
17-Feb
17-Feb

W estw ood S& LA , Lo s Angetes, CA
Community S& LA , Fond Du Lac, W t
Southern Ftoridabanc FS & LA , Boca Raton, F L

17-Feb
17-Feb
17-Feb

F irs t FS & LA , Largo, F L
American S& LA , A Federat Association, Satt Lake City, U T
Security S& LA , Scottsdate, AZ

29
30

17-Feb
17-Feb
17-Feb

Nite Vattey FS & LA , Scottsbtuff, NE
Concordia Federat Bank for Savings, Lansing, tL
Ptatte Vattey F S& LA , Gering, NE

31
32

17-Feb
17-Feb

tndependence F S & LA , Batesvitte, AR
Universat S& LA , A F S & LA , Scottsdate, AZ

33
34

17-Feb
17-Feb

So uthw e st S& LA , Phoenix, AZ

17-Feb

17-Feb
02-Mar
02-Mar
02-Mar
02-Mar
02-Mar

16
17

26
27
28

37
38
39
40
41
42
43
44
45
46
47
48
49

02-Mar
02-Mar
02-Mar
02-Mar
02-Mar
02-Mar
02-Mar
02-Mar

Anchor SA, Kansas City, KS
Mountainwest S& LA , A F S & LA , Odgen, U T
Horizon FS & LA , Metairie, LA
F irs t F S & LA , Fayettevitte, AR
Topeka Savings, A F S & LA , Topeka, KS
F irs t F S B of Kansas, Wettington, KS
La Hacienda Savings Association, San Antonio. TX
F irs t State Savings Bank, F S B , Mountain Home. AR
Vattey F S & L A of Hutchinson, Hutchinson, KS
F irs t State SA, San Antonio, TX
Southm ost S& LA , Brownsvitte, TX
Permian S& LA , Kermit, TX
Commerce SA, San Antonio, TX
F irs t F S & L A of Coffeyvitte, Coffeyvitte, KS
F irs t F S & L A of Hutchinson, Hutchinson, KS
F irs t F S& LA , Matvern, AR

19,354

17,597
8,944

149,779

117,117

406,287

402,023

188,623

158,319
253,633

30,695

386,061
1,364,590

39,123
217,800
89,032
5,956
56,978

157,027
332,186
2,240,605
761,572
60,256
494,395

1,050,220
63,950

357,545
257,750

415,298
332,386
336,754

99,725
2,301,855

99,216
1,766,373

857,035
249.999

222,009

386,851
131,698
102.618
168,759
77,923
125,217
236.493
250,429
110,189
11,307
837,729
96,316
197,194

588,493

19,073

17,912
31,874
9,209
161,411
82,159
32,064

122,637
196,120
321,648
107,550
11.333
795,937

18,263
17,076
9,602
24,499
3,560
14,864
16,388
8,717
10,715
1,028
44,844

90,325
169,035

13,408
20,769

390,852
106,633
105,490
163,218
117,059

M ission SA of Texas, San Antonio. TX

96.237

51,883
98,860

6,620
2,496

Home F S & LA , Mountain Home, AR

02-Mar

Enterprise FS & LA , Marrero, LA

47,022
40,534
72,404

69,528
34,742
67,134

6,870

02-Mar
02-Mar
02-Mar

5,361

54
55
56

02-Mar
02-Mar

Atamo SA of Texas, San Antonio, TX
Etmwood F S& LA , Harahan, LA

629,109
58,766

616,625
46,249

38.951
3,688

02-Mar

57,313

02-Mar

Gibrattar Federat Savings Bank, F S B , Annapotis, M D
Unipoint Federat Savings Bank, Trumann, A R

68,190

02-Mar
02-Mar
02-Mar

F irs t Federat Bank of Ataska, S B , Anchorage, AK
F irs t Savings of Louisiana, FSA, La Ptace, LA
Vision Banc Savings Association, Kingsvitte, TX

28,676
182,015
44,186

10,806
4,167

58
59
60

20,303
220,546
30,922

34,478
4,297

Landmark Savings Bank, F S B , Hot Springs, AR
San Antonio SA, San Antonio, TX
Cotoniat SA of America, Libera), KS

95,763
145,533
2.842.935

94,646
151,967
1,965,351

4,033
18,215
285,526

73.872
886.644

61,658
817,525

26.198
91,354

30,935
76,546

5,425
31,009
1,333

50
51

Fontainebteau Federat Savings Bank, Stidett, LA

02-Mar
02-Mar

63
64

02-Mar
02-Mar

65
66

02-Mar

Bexar Savings Association, San Antonio, TX
Padre F S& LA , Corpus Christi, TX

02-Mar

Home Savings Bank, Anchorage, AK

53.188

3,177

7,912

!N STrFU T!O N S !N CONSERVATORSH!P (^s of August $ i9<$9) Continued (Do77ar amount in thousands)
At Date of Conservatorship
Date of Con
servatorship
No.

Name of tnstitution & Location

A sse ts

Deposits

Accounts

$222,984

$186,978
83,536
67,467

26,375
14,506

02-Mar

Shawnee FS& LA , Topeka, KS

02-Mar

Mid-America F S& LA , Parsons, KS

85,068

02-Mar
02-Mar

Peoptes S& LA , Parsons, KS
Suburban SA, San Antonio, TX

02-Mar
02-Mar

The Barber County S& LA , Medicine Lodge, KS
Commonweatth S& LA , Osceota, AR

87,893
59,654
55,509

73
74
75
76

02-Mar

Madison Guaranty S& LA , Augusta, AR

09-Mar
09-Mar
09-Mar

70
71

Number of

Gross

1989

50,981
42,601

10,907
2,723
4,812

121,878

32,311
99,399

7,592
5,014

Otero Savings, A F S& LA , Cotorado Springs, CO
United Guaranty Federat Savings Bank, Tuttahoma, TN
Century S& LA , Baytown, TX

552,819
11,011
84,611

472,010
12,562
85,179

35,600
1,192

09-Mar

W e stern Gutf S& LA , Bay City, TX

204,732

248,706

78
79
80

09-Mar
09-Mar
09-Mar

F irs t F S& LA , Summervitte, GA
Commonweatth Savings Association, Houston, TX
City SA, League City. TX

81
82
83

09-Mar
09-Mar
09-Mar

Mesa F S & LA of Cotorado, Grand Junction. CO
Sun Country S B of New Mexico, F S B , Atbuquerque, NM
Bankers S& LA , Gatveston, TX

34,277
1,796,502
39,630
116,197

1,661,352
40,946
103,490

84
85

09-Mar
09-Mar
09-Mar
09-Mar
09-Mar

Vattey Federat Savings Bank, Roswett, NM
Lincotn FS& LA , M t Carmet, TN
Cotorado S& LA , Granby, CO
Citizens of Texas S& LA , Baytown, TX

86
87
88
89
90

09-Mar
09-Mar

85,489
315,119
125,889

110,082
263,431
145,584

16,195

17,968
47,045

17,707

3,002

46,143
227,752

27,996

94,431
72,943

83,297

3,686

65,399

Continenta) Savings, A F S& LA , Bettaire, TX
American FS& LA , Atbuquerque, NM

545,196
205,629

597,129
145,177

9,182
14,195

Bancptus Savings Association, Pasadena, TX
Ameriway Savings, Houston, TX

698,942

881,736

184,307
3,226,760

216,058
2,333,110

60,510
76,258
93,847
95,994

43,866

09-Mar

Spring Branch S& LA , Houston, TX

09-Mar

Rocky Mountain S& LA , Woodtand Park, CO

09-Mar
09-Mar

Liberty County F S& LA , Liberty, TX
F irs t F S& LA , Attanta, GA
Trinity Vattey S& LA , Ctevetand, TX
Modern FS& LA , Grand Junction, CO

106
107
108

09-Mar
09-Mar
09-Mar

109
110
111
112
113
114
115
116

09-Mar
09-Mar
09-Mar
09-Mar
09-Mar
09-Mar
09-Mar
09-Mar

Universat SA, Houston, TX
Concord-Liberty S& LA , Monroevitte, PA
Peoptes Savings Association. FA, St. Joseph, Mt
American S & LA of Brazoria. Lake Jackson, TX

117

09-Mar

Benjamin Franktin SA, Houston, TX

118

09-Mar
16-Mar

F irs t Savings Bank of Atabama, FA, Hamitton, A L
F irst F S & LA of Seminote, Seminote, OK

121

16-Mar
16-Mar

122

16-Mar

Continenta) F S& LA , Oktahoma City, OK
Savings of Texas Association, Jacksonvitte, TX
F irst FS& LA , Baton Rouge, LA

123
124
125

16-Mar
16-Mar
16-Mar

Midwestern SA, Macomb, tL
Peoptes F S & LA of Thibodaux, Thibodaux, LA

126
127

16-Mar
16-Mar

F irst F S & LA of the Ftorida Keys, Key W e st, F L
Deep East Texas SA, Jasper, TX

128

16-Mar
16-Mar

Brickettbanc SA, Miami, F L
The Duncan S& LA , Duncan, OK

16-Mar
16-Mar
16-Mar

Gotden Triangte S& LA , Bridge City, TX
Financiat Security FS & LA , Detray Beach, F L
Acadia S& LA , A FSA, Crowtey, LA

129
130
131
132

7,063
21,866

154,069
101,558

119
120

2,354
6,828

122,470
132,704

Sun S& LA , Parker, CO

09-Mar

24,866
7,617

189,538

09-Mar

104
105

59,993
49,685
105,430
53,084

190,130

09-Mar

250,928

17,062
13,583
9,177

314,252
78,017

Vittage Savings, F S B , Houston, TX
Germantown T ru s t Savings Bank, Germantown, TN
F irs t Capita) SA of Texas, Houston, TX

09-Mar
09-Mar
09-Mar
09-Mar

70,797
55,285
71,346

77,446
111,451

102,546
2,167

50,038
362,468
60,127

09-Mar
09-Mar
09-Mar
09-Mar

101
102
103

73,619
109,501
221,918

35,783

7,429
8,181
6,917

Bayshore SA, La Porte, TX
F irs t F S & LA of Cotorado Springs, Cotorado Springs, CO
Humbte S& LA , Humbte, TX
Phenix FS& LA , FA, Phenix City, A L

91
92
93
94

99
100

39,254

Hitt Financiat S& LA , Red Hitt, PA
Atpine FS& LA , Steamboat Springs, CO
Century Federat Savings Bank, Trenton, TN
Vattey F S & LA of Grand Junction, Grand Junction, CO
First Equity SA. Tombatt, TX
Southeastern SA, Dayton, TX
Liberty Bett SA, Beaver Fatts, PA

Rusk F S& LA , Rusk, TX

315,850

64,869
92,627
218,458
217,400
109,927
286,628
2,731,396
25,288
35,427
654,308
79,394
43,790

72,621
113,282
119,509
70,759
79,557
265,330
222,562
99,714
321,711
1,928,312
22,799
33,547
505,851
79,391

7,202
21,706
11,123
8,135
10,236
9,182

6,842

10,872
23,078
10,587
306,542
8,013
7,106
15,573
10,522
6,090
14,809
9,334
52,901
11,939
15,614
113,630
3,578
4,140
97,317
5,759
5,167

53,167

44,135
45,405

117,639

95,514

19,809
237,275

20,399
189,706

55,693
39,590
153,036
44,449

57,196
35,944
134,977
63,436

2,173
14,180
3,100

151,354
134,771

146,001
136,174

9,858
10,947

4,946
16,158
3,435
26,169
5,328

INSTITUTIONS IN CONSERVATORSHIP (as of August <S, J9#9) Continued (Doiiar amounts in thousands)
At Date of Conservatorship
Date of Con
servatorship
Name of institution & Location

Number of

Gross
A sse ts

Deposits

Accounts

$309,501

$257,434

20,512

85,850

97,796

5,570

217,296
594,487

196,489
473,834

19.927
27,053

51,948
34,806
30,594

51,998
25,320

No.

1989

133
134

16-Mar

Fidetity S& LA , Port Arthur, TX

16-Mar

River City Federa) Savings Bank, Baton Rouge, LA

135
136
137
138

16-Mar
16-Mar

F irs t F S& LA , Shreveport, LA
Royat Patm Savings Bank. W e st Patm Beach, F L

16-Mar

139
140

16-Mar
16-Mar
16-Mar

Chitticothe F S& LA , ChiHicothe, )L
Southeast Texas S& LA , Woodvitte, TX
Famity F S& LA , Shreveport, LA
Meritbanc Savings Association, Houston, TX

141
142

16-Mar
16-Mar

F irs t F S& LA , Eunice, LA
Liberty F S& LA , New Port Richey, F L

143
144
145

16-Mar
16-Mar
16-Mar

146
147

16-Mar
16-Mar

Home F S & L A of Centratia, Centratia, tL
Security Savings Association, FSA, Texarkana, TX
F irs t South SA, Port Neches, TX
Evangetine F S& LA , Lafayette. LA

148
149

16-Mar
16-Mar
16-Mar

Skokie F S& LA , Skokie, tL
Spindtetop SA, Beaumont, TX
Sabine Vattey S& LA , Center, TX

16-Mar
16-Mar
16-Mar

Miami Savings Bank, Miami, F L
F irs t Venice S& LA , Venice, F L
F irs t Savings A ssn of Southeast Texas, Sitsbee, TX

16-Mar
16-Mar

Jasper F S& LA , Jasper, TX
Jefferson S& LA , Beaumont, TX

144,214
136,419

122,620

156
157
158

16-Mar
16-Mar
16-Mar

Madison County F S& LA . Granite City, tL
Home F S & LA of Jotiet, Jotiet, tL
Lincotn S& LA , Miami, F L

132,161
155,383

126,879
131,103

268,811

245,130

159
160

16-Mar
16-Mar
16-Mar

133,594
75.193
67,039

97,476
47,020
47,803

163
164

16-Mar
16-Mar
16-Mar

M idw est Home F S B . Bettevitte, tL
Genera) SA, Henderson, TX
American Security F S& LA , Chicago. tL
Timbertand SA, Nacogdoches, TX
F irs t Savings of America, A FS& LA , Ortand Park, tL
F irs t F S& LA , New tberia, LA

57,663
37,306

47,972
41,992
60,511

165

16-Mar

Community F S& LA , Tampa, F L

166

30-Mar

14,795
603,510

167
168

30-Mar
30-Mar

City F S & LA , Birmingham, A L
Broadview Savings Bank, Ctevetand, OH
Community F S& LA , Newport News, VA

14,316
717,164
1,732,491

169

30-Mar

170
171
172
173
174
175
176
177
178
179
180

30-Mar
30-Mar
30-Mar
30-Mar
31-Mar
31-Mar
05-Apr
06-Apr
06-Apr
06-Apr
06-Apr

1,082,662
9,876
235,711
192.135
153,874
115,747
112.125
1,462,460
7,278,224

181
182

06-Apr
06-Apr

183
184

06-Apr
06-Apr
06-Apr

150
151
152
153
154
155

161
162

185

tttinois Savings Bank, FA, Peoria, !L

Heritage FS & LA , Monroe, NC
Midtand-Buckeye FS& LA , Attiance, OH
Batdwin County Federat Savings Bank, Robertsdate, A L
Great Attantic Savings Bank F S B , Manteo. NC
Durand F S& LA , Durand, W t
Gibrattar Savings, FA, Bettevue, W A
Gibrattar Savings. Simi Vattey, CA
Murray Savings Association, Dattas, TX
Founders S& LA , Los Angetes, CA
F irs t F S & LA of Esthervitte & Emmetsburg, Esthervitte, tA
Repubtic Bank for Savings, FA, Jackson, M S

461,539
74,233
61,555

1,006,169
274,677
44,145
159,887
55,603
57,816

729,771
318,841

69.448

9,568
307,440
207,528
175,251
129,613
115,064
1,806,920
12.280.469
1,487,237
138,984
63.289
62,212

34,948
169,473
4,467

Resource SA, Denison, TX

06-Apr

F irs t F S & LA of East Atton, East Atton, )L

06-Apr

188

06-Apr
06-Apr
06-Apr
06-Apr
06-Apr

State Mutuat FS & LA , Jackson, M S
City S& LA , Westtake Vittage, CA
Cabritto Savings Bank, Hayward, CA
Perpetuat Savings Association, A F S& LA , Santa Ana, CA
F irs t F S & LA of Southeast M issouri, Cape Girardeau, MO
Financiat F S& LA , Joptin, MO

193
194
195
196
197

06-Apr
06-Apr
06-Apr
06-Apr
06-Apr

Heritagebanc SA, Duncanvitte, TX
Centra) S& LA , Jackson, M S

198

06-Apr

F irst of Kansas B& SA , Hays, KS

312,455
46,635
72,756

American F S B , Austin, TX

187

45,426
466,295

854,986

186

189
190
191
192

66,800
50.463
302,555

American F S & LA of Cotorado, Cotorado Springs, CO
Gateway Savings Bank, San Francisco, CA
F irs t Catifornia Savings. FSA , Orange, CA
Equity F S B , Denver, CO

Libertyvitte FS& LA , Libertyvitte, tL
Cass F S & LA of St. Louis. Ftorissant, MO
Fidetity F S B , Corinth, M S

22,583
320,958
15,465
88,723

293,429
26,333

82,665

28.319
147,490
58,890
42,450
149,900

5,799
5,185
2,029
23,887
1,799
8,020
7,865
25,593
11,190
2,282
6,457
92,276
10,327
3,238
12,368
7,226
4,513
19,343
11,305
22,518
13,659
15,031
21,543
4.398
4,833
4,388
10,914
6,801
2,749
125,232
130,865
1.446
28,514
38,141
21,624

1,170,635
166,509
58,749

3,129
33,881
82,359
605,353
90,046
16,902
8,529

85,122
674,097

2,722
42,396

126,108
31,560
194,858

4,813
1,733
11,727

4,962

157

425,925
55,660
9,687

13,188
6,792
1,094

73.249

34,018
61,915

19,416
394,510

28,992
331,012

179,700
110,204
57,397

172,202

664,429
58,141
9,843
33,478

128,793
190,860
61,524
54,175

93,431
65,429
125,220
145,400

1,915
5,943
1,464
71,530
33,114
16,557
9,363

72,912

8,489
18,359
2,897

46,155

5,778

INSTITUTIONS IN CONSERVATORSHIPS (as of August $ 19#9) Continued (DoMar amounts in thousands)
At Date of Conservatorship
Date of Con
servatorship
No.

Name of tnstitution & Location

1989

199
200

06-Apr
06-Apr

Arrowhead Pacific Savings Bank, San Bernardino, CA

201

06-Apr

City Federat S& LA , Oaktand, CA

202
203
204

06-Apr
06-Apr

Sioux Vattey S& LA , Cherokee, tA
Washington S& LA , Stockton, CA

06-Apr
06-Apr

Centra) Texas S& LA , Waco, TX
Centenniat Savings Bank, F S B . Greenvitte, TX
Park Cities Savings Association, Dattas, TX

205
206
207
208
209
210
211
212

06-Apr
06-Apr
06-Apr
06-Apr
06-Apr
06-Apr
06-Apr

Royat Oak S& LA , Manteca, CA

Unified Savings, A FS& LA , Northridge, CA
Bedford SA, Bedford, TX
Detta F S& LA , Drew, M S
Gotden Circte SA, F S B , Corsicana, TX
Excet Banc Savings Association, Laredo, TX
tndependence S& LA , Vattejo, CA
Meridian Savings Association, Artington, TX

Gross
A sse ts

$88,042

6,931

35,214

35,489

4,207
4,194

20,573
86,302
67,832
232,020

27,896
90,756
68,631 '
210,592

113,012
49,375
39,514

82,688
36,937
52,295
102,567
13,807

7.392
1,390
566

18,502
158,610
373,319

1,150
8,529
42,771
7,867

106,899
11,200
20,997
170,691
446,288
136,991

215
216
217
218

27-Apr
27-Apr

219
220

08-Jun
08-Jun

221
222
223
224

14-Jun
14-Jun
22-Jun
22-Jun

Sun State S& LA , Phoenix, AZ
W estern S& LA , Phoenix, AZ
Great Southern Federat Savings Bank, Savannah, GA

225
226
227
228

22-Jun
29-Jun
29-Jun
29-Jun

F irst FS& LA , Americus, GA
The Guardian FS& LA , Bakersfietd, CA
Peoptes S & LA FA, Hampton, VA

229
230

29-Jun

Amerimac Savings Bank, F S B , Hittsboro, tL
Missouri Savings Association, Ctayton, MO

231

29-Jun
29-Jun

Victoria SA, Victoria, TX
First FS& LA , Bakersfietd, CA

232

29-Jun

Mid Missouri S& LA , Boonvitte, MO

136,339
77,157

233
234
235
236
237
238

13-Ju!
13-Ju!
13-Jut
13-Jut
20-Jut
20-Jut

Cornerstone Savings Association, Houston, TX
Cross Roads S& LA , Checotah, OK
F irst S& LA , FA, Waco, TX
Pioneer FS& LA , Ptymouth, tN

117,396
17,381
418,382
82,110

Peoptes Bank for Savings, Streator, tL
Home FS& LA , Memphis, TN

50,682
221,126

239
240
241
242

20-Jut
20-Jut
20-Ju!
20-Jut

243
244
245
246
247

20-Jut
27-Jut
27-Jut
27-Jut
27-Jut
27-Jut

Sierra FS& LA , Beverty Hitts, CA
Commonweatth S& LA . Margate, F L
Parish Federat Savings Bank, Denham Springs, LA
New Mexico Federat Savings & Loan, Atbuquerque, NM
American tnterstate Savings. A FS& LA . Los Angetes. CA
Capital S& LA , W e st Hetena, AR
LaFayette S& LA , Gretna. LA

248
249
250
251

Lincotn S&LA, trvine, CA
Westco Savings Bank, F S B , Witmington, CA
Metropotitan FS& LA , Denvitte, NJ
Seabank Savings, F S B , Myrtte Beach, SC
Southw est S& LA , Los Angetes, CA
Horizon Financial FA. Southampton, PA
Civic Savings Bank. Portsmouth, OH

Habersham Federat Savings Bank, Attanta, GA

Hattmark Savings Association, Ptano, TX
Federat Savingsbanc of the Southwest, Kitgore , TX
Guaranty Federat Savings Bank, Taytor, Mt

27-Jut

North American Savings Association, San Antonio, TX

27-Jut

Commerciat Federat Savings Bank, Hammond, LA
Capita) City SA, Austin, TX

27-Jut

252

27-Jut

253
254

01-Aug
04-Aug
04-Aug

New Braunfets S& LA , New Braunfets, TX

5,089,732
189,190
169,302
35,874
930,434
2,580,674
103,539
1,106,534

620,180
89,901

57,490

47,001
35,817

37,872
25,799
28,730
677,515
963,018

82,031
453,307

04-Aug

Detta S& LA , Kenner, LA

177,365

259
260
261

04-Aug
04-Aug
04-Aug
04-Aug

South S& LA , Stidett, LA

285,525

262 institutions

62,685
29,378
21,428

$114,322,627

177,199
13,405
39,873
2,599
69,599
292,032
14,307
42,743
453,375
86,479
4,391
9,259
706
3,328
3,082
104,342

11,927

89,410

258

6.608
2,116

63,272
109,698
17,148
412,634

66,326
395,659

37,980
119,624

7.433
13,907

16,217

78,349
555,680

Home S& LA , New Orteans, LA
Citizens Homestead Association, New Orteans, LA

12,529

886,911
132,882

39,992
1,651,394
15,298
253,865
26,200
90,522
29,618
180,273
49,161
220,147
102,197

04-Aug

TOTALS

24,265
24,247
505,547

92,273
47,076
164,252
39,906
1,176,046
14,821
193,377
25,017
45,994
26,776
175,769
36,342
192,389
92,488

69,980
583,224

262

99,296

922,015
93,516

American S& LA , New Or)eans, LA
Security Homestead Association, New Orteans, LA

Centra) S& LA , New Orteans, LA
Terrebonne S& LA , Houma, LA
F irst City S & LA of Baton Rouge, Baton Rouge, LA

33,632
790,040
1,722,803

6,070,440

503,813

04-Aug

434,783
4,193,981
181,399
174,146

905,956
4,361,007

Caprock S& LA , Lubbock, TX

255
256
257

Accounts

$62,961

06-Apr
14-Apr
27-Apr
27-Apr

213
214

Number of
Deposits

12,346
1,880
859
47,619
14,055
3,284
12,388
1,261
68,311
2,593
22,278
326
3,675
3,023
2,052
2,184
22,267
3,988
8,716
22,393
3,060
13,585

73,500

3,309

533,956

80,818
1,914

34,839
115,723
111,674

15,645
5,097

24,786

26,809
9,902
5,191
2,244

$91,721,957

8,787,092

246,383
62,872
24,152

Prepared by RTC Anatysis

RTC RESOLUTIONS (August ^

tArougA December Ji, ^9(S9) (Doiiar amounts in thousands)

Date
of
Resotution

Name of institution & Location

Type

Gross

Total

Deposit

A ssets

Deposits

Accounts

Estimated
Outtay

Recoveries

tDT

10-Aug

Park Cities SA. Dattas, TX

tDT

44,448

33,236

8,296
i,427

34.471

Comerica Bank Texas, Daltas, Texas

10-Aug

First Savings of America FS&LA. Ortand Park. tL

tDT

25,020

45,671

9,679

46,687

21,117

St. Paul Federat Bank for Savings, Chicago, tL

18-Aug

Evangetine FS&LA, Lafayette, LA

IDT

49,871

78,366

1,915

78,673

8,857

18-Aug

First FS& LA of Coffeyvitte, KS

tDT

81.796

85,646

12,838

86,056

51.514

18-Aug

Century S&LA, Baytown, TX

ID T

57,097

86,637

6.309

83,917

41.932

NCNB Texas Nationat Bank, Dallas, TX

18-Aug

Sioux Vattey S&LA, Cherokee, tA

69.672

91,656

11,939

91,160

39.375

None

25-Aug

Home FS&LA, Mountain Home, AR

25-Aug

First FS&LA. Matvern, AR

41,265
53,264

61,872

89,596

91.700
39.623

51,234

Acquiring tnstitution & Location

Liberty FS&LA, New Port Richey. FL

10-Aug

The Citizens & Southern National Bank, Ft. Lauderdate, FL

Hibernia Nationat Bank, New Orteans, LA
Bank tV Coffeyvitte, Coffeyvitte, KS

70.292

6,306

60.980

32,251

None

6,454

28,950

None

17,369
32.071

Olympic Nationat Bank, Los Angetes, CA
NCNB Texas Nationat Bank, Dattas, TX

25-Aug

Perpetuat SA FS&LA, Santa Ana, CA

PO
tDT

17,497

52.225
29,515

1,193

51.062
29,304

25-Aug

City S&LA. Westtake Vittage, CA

tDT

29,507

31,704

1,042

33,326

Bank of Industry, City of Industry, CA

08-Sep

American FSB, Austin, T X

tDT

30,933

30,342

22.215

Etmwood FS&LA. Harahan, LA

tDT

57,581

48.440

1,872
3.547

30.747

08-Sep

47,615

41.635

First Nationat Bank of Commerce, New Orteans, LA

08-Sep

Enterprise FS&LA, Marrero. LA

tDT

70,332

65.664

5,303

67,663

41,292

Whitney National Bank, New Orteans, LA

15-Sep

Niie Vattey FS&LA, Scottsbluff, NE

ID T

48,300

61.653

3,172

62,400

31,728

First National Bank & Trust. North Platte, NE

15-Sep

Great Attantic SB, Manteo, NC

IDT

117,164

110.516

2.798

109.999

78.416

NCNB National Bank of North Carolina, Charlotte, NC

15-Sep

First SA of Louisiana. La Ptace, LA

tDT

29,700

44.480

4,056

44,858

13,404

Hibernia National Bank, New Orleans, LA

15-Sep

Humbte S&LA. Humbte, TX

tDT

43.398

78.849

7.218

79,637

30.146

22-Sep

Habersham FS&LA, Cornetia. GA

tDT

87.616

90.144

4.095

87,945

72,695

First National Bank of Commerce, Commerce, GA

22-Sep

Cotoniat SA of America, Liberat, KS

tDT

66,185

60,763

4,691

61,300

40,540

The Garden Nationat Bank, Garden City, KS

22-Sep

Vitiage Savings FSB . Houston. T X

ID T

100,282

158,628

10,352

160.591

53,788

NCNB Texas Nationat Bank, Dattas, TX
NCNB Texas Nationat Bank, Dattas. TX

Hibernia National Bank in Texas. Pftugervilte, T X

22-Sep

First Capita) SA of Texas. Houston. TX

tDT

74,092

116.422

9,961

112.553

33,619

22-Sep

Unified Savings a FS&LA. Northridge, CA

30,597

49.608

571

46,896

28,120

22-Sep

First Catifornia Savings, Orange. CA

PO
ID T

143,110

196,938

11,772

210,063

06-0ct

Trinity Vattey FS&LA, Ctevetand, TX

tDT

76,848

79,833

3,637

79.376

127.342
63,897

06-0ct

Southern Ftoridabanc FS&LA, Boca Raton, FL

tDT

132,728

245,914

17,565

256,361

65,110

06-0ct

Acadia S&LA, Crowtey, LA

tDT

104,994

141,418

10,673

142,366

41,881

Iberia Savings Bank. New Iberia, LA

06-0ct

River City FSB . Baton Rouge. LA

tDT

88.288

101.181

4,964

111,163

22,019

Hibernia Nationat Bank, New Orteans, LA

13-0ct

Freedom S&LA, Tampa, FL

P&A

992.573

1,098,878

147,178

1.177,385

609.522

13-0ct

University FSA, Houston, TX

P&A

3,762,282

3.462.469

359,759

4.423,197

1.070.974

13-Oct

Hitt Financiat SA. Red Hitt. PA

P&A

2,695,249

2.019.035

287,735

1.849.248

1.199.023

13-0ct

Pacific Savings Bank, Costa Mesa, CA

868,381

960,922

46.096

1,091,338
362,954

445,279

22.055

21,802

20-0ct

tndependence S&LA, Vattejo, CA

P&A
tDT

344,165

351,986

15-Dec

First Savings Bank of Atabama. Hamitton, AL

tDT

23,243

20,038

42.179
3,141

Hibernia National Bank in Texas, Pftugerville, TX
NCNB National Bank of Ftorida, Tampa, FL

NCNB Nationat Bank of Ftorida. Tampa. FL
NCNB Texas National Bank, Datlas. TX
Meridian Bancorp, tnc., Reading, PA
Royat Trustco, Toronto. Canada
Bay View Federal Savings & Loan, San Mateo, CA
SouthTrust Bank of Marion County, Hamilton, AL

Concord-Liberty FS&LA. Monroevitte, PA

P&A

187,272

194,248

50.465

(882)

Parkvale Savings Association, Monroeville, PA

15-Dec

Liberty Bet) SA. Beaver Fatts, PA

P&A

69,481

64,846

13,573

15,026

(872)

Reeves Bank. Beaver Falls, PA

19-Dec

Seabank FSB , Myrtte Beach, SC

P&A

30.871

33,553

2.272

29.413

29.143

$10,807,974

$10,581,312

1,126,043

$11,427,186

$4,546,875

15-Dec

TOTAL 37 institutions
Notes:

1) Gross A sse ts & Totat Deposits data are based on T F R data for the month prior to the date of resotution
2) tDT - insured Deposit Transfer; PO - Deposit Payout; P&A - Purchase & Assumption
Prepared by RTC Anatysis

52,549

5,898

None
First American Bank, Rosewood, CA

F„st Ctizens Bank & Tru st Company. Columb.a. SC

!A D E X
Accelerated Resolution Program
Affordable Housing
Asset and Real Estate Management Division

3
2 ,5 ,9
8-11

Budget, Office of
Clarke, Robert L.
Capital Markets
Comptroller General of the United States
Conservatorships
Contracting
Cooke, David C.
Corporate Communications, Office of

27
iv
21-22
41-48
2, 4, 12-13, 50, 51, 52-55
2,10
4-5
26
iv

Directors

Executive Secretary, Office of

v, 5
v,4, 25
20
v
v, 2, 5
20-21

Federal Asset Disposition Association
Federal Deposit Insurance Corporation
Finance and Administration Division
Financial Institutions Reform, Recovery, and Enforcement Act
Federal Savings and Loan Insurance Corporation
Funding
Hope, C.C., Jr.

Investigations

Legal Services
Legislative Affairs, Office of

25
28
4,12-13
2 ,5,10

Managing Agents
Minority and W om en Outreach Program
Office of Thrift Supervision

iv, 3

Program Analysis, Office of

Regulations 1989
Research and Statistics, Office of
Resolution Trust Corporation
Administrative Section

31
26
22
22-23

Automation Section
Financial Reporting Section

23-24

Financial Statements

32-40
vi

Organization Chart

Oversight Board
Resolutions
Resolutions and Operations Division
Seidman, L. William
Special Counsel
Statistical Tables
RTC Conservatorships, August 9, 1989 through
December 31, 1989
N ew RTC Conservatorships, August 9, 1989
through December 31, 1989
Institutions in Conservatorship as of August 9, 1989
RTC Resolutions, August 9, 1989 through December 31, 1989
Wall, M. Danny

2, 4,

14-19, 56
12-19
iv, 2 3
25

50
51
52-55
56
iv

Resolution Trust Corporation
801 Seventeenth Street, N.W.
Washington, D.C. 20434-0001

RTC 1400-001-89

Full text of Annual Report (Resolution Trust Corporation) : 1989

FRASER