Full text of Annual Report (Resolution Trust Corporation) : 1990

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THE

R e s e a r c h L ib r a ry










October 15,1991

Resohntioa T ru st C orp oration

Washington, D.C.

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 1990. Financial operating plans and forecasts
are being provided separately.

Very truly yours,

L. William Seidman
Chairman

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

B o a r d o/* D i r e c t o r s

iv



L.
S e id m a n
L. William Seidman was elected
Chairman of the Federal Deposit
Insurance Corporation on Octo­
ber 21, 1985. Prior to his FDIC
appointment, Mr. Seidman spent
many years in the financial field,
holding positions in both the
public and private sectors. He
served as Dean of the College of
Business of Arizona State Univer­
sity and a director of several orga­
nizations, including the Phelps
Dodge Corporation, PrudentialBache Funds, United Bancorp of
Arizona, and The Conference
Board. He was Co-chairman 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. Other
prior positions include Chair
man and 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 Univer­
sity of Michigan. Mr. Seidman is
a m ember of the American Bar
Association, the American Insti
tute of Certified Public Accoun­
tants, and several honorary
academic fraternities, including
Phi Beta Kappa. He has authored
two books and numerous articles
on business and tax subjects, a

f . HOVC, /# .
Andrew C. Hove, Jr., was ap­
pointed Vice Chairman of the
FDIC Board of Directors on July
23, 1990. He brought to the posi­
tion three decades of banking
experience. During his 30 years
with the Minden Exchange Bank
& Trust Company in Minden,
Nebraska, he rose to the ranks of
Chairman and Chief Executive
Officer. Mr. Hove also served as a
President of the Nebraska Bank­
ers Association, and held various
other leadership roles within the
association. At the American
Bankers Association, Mr. Hove
served as a delegate to the ABA
Leadership Conference, a bank­
ing advisor, and Vice President
representing Nebraska. He is a
former President of the Nebraska
Electronic Transfer System and
the Kansas/Nebraska Schools of
Banking. Mr. Hove has held
several civic posts and has been
active in local government, hold­
ing such positions as Treasurer
and Mayor of the city of Minden.
He earned a B.S. degree from the
University of Nebraska-Lincoln,
and is a graduate of the University
of Wisconsin-Madison Graduate
School of Banking, a




RTC Board o/ Directors
L-R (front)
7.
^cidwHM
Cha:rwaR
7 7. Hope, / r
Director
L-R (rear)

Robert 7 CiarFtc
CowtptroHer o/'
CMrreRcy
!ndK M' C. 77ovc, Jr.
Vtce Chairman
Ti#no7Ft!^77gHM
Director, Offtce of Thrtff SMpe7*uts:on

V

C .C .H o p e ,/r .
C.C. Hope, Jr., was appointed to
the FDIC Board of Directors on
March 10, 1986, following an
extensive career in banking.
Mr. Hope spent 58 years at First
Union National Bank of North
Carolina in Charlotte, retiring as
Vice Chairman in 1985. He is a
former President of the Ameri­
can Bankers Association and has
served as Secretary of the North
Carolina Department of Com­
merce. Mr. Hope has also held
several positions in the educa­
tional field, currently serving as
a trustee on the Board of Wake
Forest University, which he for­
merly chaired. He also served as
Dean of the Southwestern Gradu­
ate School of Banking at Southern
Methodist University. Mr. Hope
holds a B.A. in Business Adminis­
tration from Wake Forest Univer­
sity and has completed graduate
work at the Harvard Business
School and The Stonier Graduate
School of Banking at Rutgers
University. H




R o & e r? L.
Robert L. Clarke was sworn in as
Comptroller of the Currency on
December 2, 1985. At the same
time, he became a member of
the FDIC's Board of Directors.
Prior to these appointments, Mr.
Clarke headed the banking sec­
tion at Bracewell & Patterson, a
law firm in Houston, Texas,
which he joined in 1968. The
banking section, founded by Mr.
Clarke, prepared corporate appli­
cations and securities registra­
tions, counseled management in
expansion opportunities and the
effects of deregulatory initiatives,
and represented institutions in
enforcement matters. Mr. Clarke
is a member of the Texas and
New Mexico bars. He has served
as a director for two state banks
and has been active in several
civic, political, and professional
organizations. Mr. Clarke received
a B.A. in Economics from Rice Uni­
versity and an LL.B. from Harvard
Law School. *

Timothy Ryan was appointed
Director of the Office of Thrift
Supervision on April 9, 1990,
following his nomination by
President George Bush and con­
firmation by the U.S. Senate for
a five-year term. Prior to his
appointment, Mr. Ryan was a
partner and m ember of the exec­
utive committee of the law firm
of Reed Smith Shaw and McClay.
While with the firm, he special­
ized in labor and employment
relations. From 1981 to 1985, he
served as Solicitor of Labor at the
U.S. Department of Labor. Mr.
Ryan received a bachelor's
degree from Villanova University
and a Juris Doctor from The
American University's Washing­
ton College of Law. n




As an increasing number of
savings and loan associations
headed toward insolvency dur­
ing the 1980s, President Bush
initiated a restructuring plan
for the thrift industry to thwart
its collapse. As part of the plan,
in February 1989 the Federal
Deposit Insurance Corporation
(FDIC) was tasked with leading
a large-scale interagency effort
to evaluate and manage the oper
ations of insolvent savings
and loans, containing losses and
m ain taining services to deposi­
tors, until Congress authorized
reform of the savings associations'
regulatory and deposit insurance
system. Joining the FDIC in this
effort were 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.
On August 9, 1989, Congress
passed the Financial Institutions
Reform, Recovery, and Enforce­
ment Act (FIRREA), establishing
the Resolution Trust Corporation
(RTC) to solve the crisis in the
th rift industry. To this end,
the RTC must contain, manage,
and "resolve" failed savings asso­
ciations that were insured by the
FSLIC before FIRREAs enactment
and for which a conservator or
receiver is appointed between
January 1, 1989, and August 9, 1992.
As part of its mission, the RTC
must maximize the net present

value return from the sale or
other disposition of savings
associations and their assets;
m inim ize the impact of such
transactions on local real estate
and financial markets; minimize
the amount of any loss realized in
the resolution of these insolven­
cies; and maximize the availability
and affordability of residential
real property for low- and moderate-income individuals.
During 1990, the RTC took con­
trol of 207 savings and loans
determined to be insolvent by
the Office of Thrift Supervision
(OTS). While the institutions
were under the RTC's control,
the RTC took steps to preserve
basic services to customers, eval­
uate the thrifts' financial condi
tions, reduce costs, identify and
stop any fraud or abuse, and
prepare the institutions for
resolution. At yearend, the RTC
had closed or sold 315 insolvent
savings institutions and achieved
asset sales and collections of $128
billion from the failed thrifts.
The RTC operates from its head­
quarters in Washington, D.C.,
and four regional offices based in
Atlanta, Georgia; Dallas, Texas;
Denver, Colorado; and Overland
Park, Kansas. Reporting to the
regional offices are 14 consoli­
dated offices and 14 sales centers,
established at the national,
regional, and local levels to facili­
tate the sale of real estate, financial
instruments, and other assets.

v ii

Serving as m anager of the RTC
is the FDIC. Executive Director
David C. Cooke oversees the
RTC's day-to-day operations.
The RTC's Board of Directors,
which also serves as FDIC's
Board, is chaired by L. W illiam
Seidman. Other m em bers of
the Board in 1990 included
Andrew C. Hove, Jr.; C.C. Hope,
Jr; Comptroller of the Currency
Robert L. Clarke; and Timothy
Ryan, Director of the Office of
Thrift Supervision.

Y

1990
Orgamzattow Chart
Resohntion T ru st C o rp o ratio n
W ashington O ffice Stru ctu re




FIRRE A also established the
RTC Oversight Board to form u­
late policy, approve funding,
and provide general oversight
of the RTC. The act specified
five m em bers to serve on the
Board: the Secretary of the
Treasury, who chairs the Board;
the Secretary of Housing and
Urban Development; the Chair
man of the Federal Reserve
Board; and two public members
named by the Senate, n

R esoiu tion T ru st C orp oration

T a M e o/*




i

T ra n sm itta i L e tte r

iii

B o ard o f D irecto rs

iv

!n tro d u ctio n
O rganization C hart

vii
v iii

C h airm an s S tatem en t

2

E xecu tive D irecto r s S tatem en t

5

O peration s

9

Asset and Real Estate Management Division

10

Resolutions and Operations Division

18

Finance and Administration Division

43

Legal Branch

47

O ffices o f th e R esoiu tion T ru st C orp oration

49

Office of Research and Statistics

50

Office of Corporate Communications

51

Office of Budget

51

Office of Program Analysis

53

Office of Legislative Affairs

53

Office of the Executive Secretary

54

Office of Corporate Inform ation

56

R efu tatio n s

59

F in an cial S tatem en ts

63

S tatistics

85

Hndex

99

CTMMrmaw's

Faced with the most difficult
cleanup job ever undertaken by
the government or the private
sector, the Resolution Trust Cor­
poration has made great strides
in resolving the savings d*nd loan
crisis. Still, much work remains,
including continuing with the
initiatives underway to improve
our performance.
In less than two years, we have
become one of the nation's larg­
est financial institutions. Entering
1990, we were managing an
inventory of 281 failed thrifts.
During the year, we took control
of another 207 institutions and
resolved 315 S&Ls. Since the
RTC's inception, we have re­
solved 396 thrifts, resulting in
the protection of about 14 million
insured deposit accounts and a
net savings of approximately
$1.9 billion over the cost of pay­
ing off insured deposits. Our cur­
rent inventory of institutions
that we must manage in the con­
servatorship program totals 221.
Controlling and stabilizing so
many institutions in such a short
tim e has been difficult. We man­
age the operations of thousands
of thrift employees in hundreds
of savings and loan offices
around the country. Typically, an
insolvent thrift has poor records
and inferior assets, and has lost
core customers and key person­
nel. Our job is to preserve what
value these institutions may
have and prepare them for sale.

2




Our most formidable task as the
country's largest sales organiza­
tion is selling the billions of
dollars in assets left behind as
failed thrifts are sold or closed.
This job is also our most unpop­
ular one. Liquid assets can be
sold quickly, but disposing of
distressed assets, such as fore­
closed real estate or delinquent
com m ercial loans, is a signifi
cant challenge, particularly in
weak markets.
Despite these obstacles, we
have sold and collected some
$160 billion in assets with a
book value of $167.7 billion,
and are m anaging assets with
a book value of $168 billion.
So, we have effectively cut our
asset inventory in half.
We take particular pride in
these achievements. While oper­
ating at a record pace, we were
faced with establishing the RTC
as an organization—a complex
undertaking in itself. The job
involved locating offices, recruit­
ing and training a work force,
and developing and im plem ent­
ing num erous policies and
procedures. The RTC has m ulti­
plied from a handful of FDIC
employees to a staff of 7,000,
most of whom are non-career
employees in the field manag­
ing the hundreds of failed
thrifts and th eir billions of
dollars in assets. Keeping pace
with the growth has been a
m ajor challenge.

To improve our perform ance
and achieve our ultim ate g o a lsaving the taxpayers' m oney—
we have undertaken a num ber
of initiatives. For example, we
have aggressively pursued and
im plemented internal controls
to protect RTC assets from loss
and to deter m ism anagem ent
and waste. Such controls are
integral to the successful opera­
tion of any business, particularly
a rapidly growing, geographically
dispersed agency like the RTC.
In a move to boost RTC real
estate sales, the RTC Board has
adopted a m ore liberalized pric­
ing policy that allows for faster,
more substantial price reduc­
tions, while ensuring that RTC
property sells at true market
value. In the face of a depressed
nationwide real estate market,
this initiative is particularly
important. It gives the RTC the
flexibility to price property to
m eet the real estate market,
instead of holding the property
until the m arket rises to the
appraisal price.

trustees to dispose of these assets
on the marketplace. Our goal is
to issue securities at a rate of
about $ 1 billion per month.
To dispose of our most illiquid
assets—non perform ing loans,
perform ing com m ercial m ort­
gages, junk bonds, and real estate—
we plan to expand programs
to sell large packages of these
assets in 1991 and in the coming
years.
C7MMr7naw
L. WiMtawt Setdwtaw

Another im portant initiative is
the securitization of RTC assets.
Through securitization, the RTC
expects to sell the bulk of resi­
dential mortgage loans not sold
with the institutions. The RTC
has completed the requisite
shelf registration with the Secu­
rities and Exchange Commission
and has hired the necessary
servicers, underwriters, and




3

We have continued our aggres­
sive pursuit to provide afford­
able housing for lower-income
families. The RTC has listed
2,748 single-family properties
with clearinghouses, and has
accepted offers on 7,141 single­
family homes. Congress has
expanded the affordable housing
program to include single-family
residences in conservatorship
institutions, enabling us to get
these properties into the hands
of eligible buyers m ore quickly.
As Congress intended, the RTC
relies heavily on private sector
contractors to manage and sell
assets, and is strongly committed
to contracting services when­
ever appropriate. Our goal is
to place the bulk of unsold
distressed loans and real estate
under contract through the
Standard Asset Management and
Disposition Agreement (SAMDA),
which includes incentives to
speed sales and maximize recov
eries. Assets under SAMDAs
totaled more than $23 billion
in book value through May 1991.
We have devoted considerable
effort to reaching out to minority
and women-owned businesses,
im proving the identification,
registration, and awarding of
contracts to them . These groups
comprise about 25 percent of
the nearly 60,000 registrants on
our contractor database. Almost
one quarter of all RTC contracts
have been awarded to m inority

4




or women-owned businesses—
6,234 contracts with estimated
total fees of almost $194 million.
The RTC has awarded a total of
27,240 contracts with estimated
fees of approxim ately $965
million.
Clearly, the task ahead for the
RTC is considerable in magnitude and complexity. According
to projections by the Office of
Thrift Supervision, we expect
another 112 thrifts to be placed
in conservatorship over the
next few years, bringing the
total since our inception to more
than 700. But with innovative
programs in place, and a dedi­
cated and experienced staff, we
are well on our way to m eeting
the challenge. H

June 1, 1991

E .re cM ^ v e D i r e c t o r 's




Since its establishment in August
1989, the RTC has accomplished
much despite formidable obsta
cles. It has protected millions of
depositors, closed hundreds of
troubled thrifts, and disposed of
an unprecedented volume of
assets. Moreover, this was accom­
plished despite the economic re­
cession and the worst real estate
market conditions in decades.
During 1990, a m ajor activity
was to develop a core organi­
zation to carry out the RTC's
mission effectively. We recruited
staff, established policies and
procedures, engaged contractors,
provided necessary facilities,
and developed training programs
and management systems. At
the same time, the RTC closed
515 savings institutions and sold
or collected over $100 billion of
assets in 1990.
With the organization in place,
strong resolution and asset
sales activity has continued into
1991, as the RTC has pursued its
basic goal of maximizing return
and minimizing loss. From its
inception through May 1991, the
RTC took control of 617 insolvent
thrifts, resolved 596, and man­
aged the remaining 221 in its con­
servatorship program. Through
these resolutions, the RTC pro
tected about 14 million deposit
accounts and produced net
savings to taxpayers of nearly
$2 billion over the cost of paying
off insured deposits.

During the same period, recover­
ies from asset sales and collections
totaled $160 billion, or 96 per­
cent of the assets' original book
value of $167 billion. Recoveries
of the less marketable assets
remaining under RTC control
will be considerably lower. Sales
and collections represented
about one-half of all the assets
taken over by the Corporation
since its inception.
Total assets under RTC m anage­
ment on May 51, 1991, amounted
to $168 billion, almost two-thirds
of which represented hard-to
sell assets such as com m ercial
mortgages, delinquent loans,
and real estate.
To dispose of these assets, a
national sales organization has
been put in place and com­
prehensive sales strategies have
been developed. The RTC has
established 14 sales centers oper­
ating in strategic locations through­
out the country. The National
Sales Center in Washington coor­
dinates the activities of the other
centers and markets some of the
larger portfolio sales of loans and
real estate properties.
Bonds and other fixed-income
securities are sold directly to
the capital markets through a
specially staffed and equipped
sales desk located in Washington.
Agency-eligible residential mort­
gages are routinely swapped for
Fannie Mae and Freddie Mac

5

securities. Securitization is the
preferred approach for perform ­
ing residential mortgages which
do not conform to agency stan­
dards. Sales of $1 billion to $2
billion per m onth are expected.
Performing loans which have
homogeneous characteristics but
cannot be readily securitized are
generally disposed of through
whole loan portfolio sales for
cash. For hard-to-sell assets such
as real estate and non-performing
loans, the RTC is pursuing
ErecMttve Director
Darid C. Coo&e

both w holesale and retail
approaches. Structured portfolio
sales are designed to sell large
amounts of such assets and
offer conventional RTC financing
as well as cash flow financing
in return for a share of the
upside earning potential. The
RTC also uses contractors em ­
ployed under Standard Asset
M anagem ent and Disposition
Agreements to sell real estate
and non-perform ing loans
on an individual basis.
Auctions are the preferred
method of selling real and
personal property valued at
less than $100,000. The RTC
has accelerated the sale of small
properties that require substan­
tial administrative expenses in
order to free up resources to con­
centrate on sales of larger assets.
In line with FIRREA, the RTC
has made a m ajor commitment
to assist the less advantaged in
obtaining affordable housing.
Through May 1991, nearly 14,000
single- and multi-family proper­
ties were listed with clearing­
houses. The RTC had sold or
accepted offers for more than
18,000 dwelling units for about
$367 million. The average pur­
chase price of single-family prop­
erties in the Affordable Housing
Disposition Program is about
$32,000 and the average income
of purchasers is about $22,000,
58 percent of the national median
income. Properties that have no

6




reasonable recovery value are
being donated to non profit
organizations and public entities.
Through its investigative activity,
the RTC has contributed to the
recovery of assets diverted from
institutions through professional
misconduct, gross negligence, or
fraud and has provided assistance
to the Department of Justice in
the prosecution of those responsi­
ble. This has resulted in over 100
convictions of individuals associ­
ated with RTC-controlled thrifts.
The RTC expects to settle claims
yielding recoveries of $100 million
in the next few months, while
several major claims are pending.

functions which would otherwise
be performed by employees.
The RTC has taken on a task of
massive proportions. While much
remains to be done, the RTC is
well on its way to accomplishing
its mission, n

June 1, 1991

Restructuring and renegotiation
of 1988-89 FSLIC assistance agree­
ments are expected to produce
estimated savings of $2 billion
in present value terms, excluding
increased tax revenue to the Treasury.
In order to carry out its enor­
mous responsibilities, the RTC
has put together one of the
country's largest financial insti­
tutions in term s of assets. The
RTC's staff has also increased,
from a few hundred at inception
to over 7,000. However, over 70
percent consists of non-career
employees serving under tem ­
porary appointments, while the
rem ainder are FDIC personnel
tem porarily assigned to the
RTC. Furtherm ore, the RTC
makes extensive use of privatesector contractors for a variety of




7







A s s e t a n d Rea% E s t a t e
M a n a g e m e n t D tv ts to n

The Asset and Real Estate Man­
agement Division has the unprec­
edented task of managing and
disposing of billions of dollars
in 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 Branch, Asset Market­
ing Branch, Affordable Housing
Disposition Program, and Con­
tract Management Section all
play important roles in accomp­
lishing the division's objectives.
The division also has operations
in the regional and consolidated
field offices. The bulk of the RTC's
employees are assigned to the
field to administer the asset and
real estate management functions.

regional, consolidated, and field
staffs. Asset decisions are usually
presented in a case format and
are reviewed by an asset commit
tee. The three Washington com­
mittees 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.

B ran ch
The Asset Disposition Branch
is charged with managing and
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 complicated
by the RTC's responsibility to
ensure that low and moderate
income individuals as well as
non-profit organizations are
given the opportunity to pur­
chase eligible single-family and
multifamily housing.

During 1990, RTC receivership
asset sales and collections totaled
$15 billion. At yearend 1990, the
RTC receivership asset balance
totaled $58 billion in book value,
with mortgages com prising
$52.5 billion; real estate owned,
$7.7 billion; com m ercial loans,
$5.2 billion; other owned
assets, $1.7 billion; securities,
$5.8 billion; installm ent loans,
$2 billion; and other assets,
$5 billion.

This branch also reviews credit
cases relating to asset disposition.
It has delegated authority for
asset matters to the Washington,

10




FIRREA mandates the RTC to
utilize the services of private
sector companies in managing
and disposing of assets whenever
possible. This is being accom­
plished through the use of Interim
Servicing Agreements (ISA),

Standard Asset Management
and Disposition Agreements
(SAMDA), and other contracting
activities. Primarily through
ISAs and SAMDAs, private
sector firms were managing
$36 billion, or 62 percent, of
the total assets in receivership
at yearend.
In 1990, the RTC Oversight
Board adopted several policies
that directly affected the Asset
and Real Estate Management
Division. These policies were
designed to improve RTC asset
sales, while still m eeting the
goals set forth by FIRREA.
The RTC Strategic Plan provided
for seller financing to purchasers
who make a significant equity
contribution (at least 25 percent,
subject to a periodic review by
the Oversight Board). Policy State­
ment Number 13, "Seller Financ­
ing of Asset Sales," authorized
the RTC on March 8, 1990, to
lower its m inim um down pay­
m ent standard to 15 percent
for most types of real estate
assets and to 5 percent for single­
family residential property in
specified circumstances. This
more flexible down payment
standard was established to help
the RTC compete more effectively
as a seller in distressed markets,
to reduce holding periods and
associated costs for certain prop­
erties, and to achieve a greater
net present value return. At that
time, a $ 1 billion cap was insti­




tuted on the am ount of seller
financing provided by the RTC.
In October 1990, the RTC Over­
sight Board extended the cap to
$1.25 billion and allowed for
$250 million in seller financing
for affordable housing properties.
Further, additional authorization
was granted in December allow­
ing the RTC to provide up to
$7 billion of seller financing for
the sale of assets.
During 1990, the Asset Disposition
Branch also issued two import­
ant manuals to help educate
employees and outside contrac­
tors. The Asset MawapeTwewf and
Disposition AfanMaf, issued on
August 8, provides guidelines for
managing and disposing of assets.
The manual is updated regularly.

1 9 9 0 Asset Sa!es and Collections
C onservatorships,
R esolu tions and R eceiverships (dollars in millions)
Tota) Sates and CoHections: $103.9 BiHion

Mortqaqes

Note: Sates are net of asset putbacks.

The RTC
GMide/mes awd Procedures MaRMa^ was
issued on September 17. This
m anual details the required
review of all property (other than
single-family residences), using
a series of checklists, to identily
environmental hazards and
environmental resources.
A number of directives/guidelines
were also issued during the year,
including a Real Estate Owned
Inventory directive that identified
the recordkeeping requirements
necessary to publish a semiannual
national inventory of all real
property assets under the RTC.
Twice yearly, a hard copy of the
RTC real estate inventory is
published.
The Asset Assignment Policy
was issued in February about the
use of private sector resources
and expertise in managing and
disposing of both corporate and
receivership assets, an action
that is also mandated by FIRREA.
Asset management contracts serve
as useful and necessaiy resources
to carry out this mission. Asset
portfolios are categorized by
asset complexity/difficulty,
asset type, asset location, and
other areas.
Uniform standards and proce­
dures were established during
the year to determine appropri­
ate Estimated Cash Recovery
(ECR) amounts on assets held by
the RTC. ECR is determined by




estim ating the gross cash to
be recovered over specifically
defined intervals. The ECR will
be updated regularly.
On November 28, a directive was
issued on the Oversight Manager
Program. The directive estab­
lished a comprehensive program
through which oversight managers
monitor and review the activities
and performance of the asset
management contractors.
In December, methods and pro
cedures were issued to deter­
m ine an appropriate Estimated
Recovery Value (ERV) for an
asset pool that will be assigned
to an asset management contrac­
tor under the SAMDA program.
According to the guidelines,
assets with similar characteris­
tics, problems, and/or in a
common market or region
should be placed into a single
managem ent and marketing
portfolio. The ERV for the asset
pool will be used to calculate the
pro rata increases or decreases
to the asset m anagem ent con­
tractor's management fee, as
well as to calculate what dis­
position fees have been earned.

The Asset Marketing Branch
markets the large inventory of
real properties, bulk loans, and
other assets under the RTC's
control. It also guides and assists
the regional offices in their
marketing activities.

In September 1990, the RTC
approved the establishment of
sales centers at the national,
regional, and consolidated site
levels. These sales centers are an
integral part of the marketing
process and are responsible for
facilitating the sale of real estate
owned and financial instruments
under RTC contract. Sales center
staffs respond to custom ers'
needs and requests, rather than
develop marketing plans or pack
age assets. The National Sales
Center in Washington is involved
in the sales of large portfolios of
assets, and in asset sales that
have a national or cross regional
scope.
In September, the branch also
issued a policy on the "Market­
ing of Real Estate Owned Assets
for Purposes of Bulk Sales Trans­
actions and Auctions." The policy
provides guidelines and imple
ments new procedures for mar­
keting real estate owned assets
through bulk (or portfolio) sales
transactions and auctions. This
policy applies to all future bulk
(portfolio) sales transactions and
auctions by the National Sales
Center or the sales centers at the
regional and consolidated site
levels, and will facilitate the cre­
ation of investor sales packages.
After issuing two Solicitations of
Services, the RTC chose 21 firms
in September to provide loan
sales advisory services and 16
firms to provide due-diligence

services. The loan sales advisors
provide counsel in evaluating,
structuring, and m arketing
single-family mortgage loans
and consumer loans. The due
diligence firms provide informa
tion on loan quality, assisting
the RTC in marketing loans and
helping achieve a better price
for RTC loans. Under this pre­
qualified program, the contractors
sign a Basic Ordering Agreement
specifying the tasks that the con­
tractor is able to perform. When
specific services are needed, task
orders are sent to the contractors
who bid on the services. The
winning bidder, who is chosen
based on the contractor's exper
tise, ability to perform, and cost
to the RTC, signs the task order.

auctions and sealed bids in
a systematic m anner greatly
enhances RTC disposition
activities. A series of auctions
or sealed bids over a period of
tim e was proposed during the
year. Well conducted auctions,
adequately marketed, whereby
the properties are exposed to the
market would ensure that a prop­
erty sells at market value. The
regions were encouraged to use
absolute auctions and sealed bids
to dispose of lower-value real
estate assets. Although the use
of minim um reserve prices is an
acceptable practice for the sale
of real estate owned properties,
competitive reserve prices on
lower-dollar real estate owned
assets were encouraged.

The RTC decided in October that
it would make a concerted effort
to sell small-dollar assets because
they are generally labor-intensive
and the sale of these assets would
free up staff to concentrate on
larger, more complex assets. Two
policies were issued, "Disposition
of Real Estate Owned Valued
Less Than $100,000" and "Sale
of Non-Performing Loans Under
$50,000."

In 1990, each region was encour­
aged to establish a geographic
network of asset management
contractors to dispose of single­
family residential and other
lower-value real estate assets. The
contractor selected for a specific
geographic area would then be
responsible for disposing of RTC
single-family residential and
lower-value assets in that area.
These "bucket" asset manage­
m ent contracts are being widely
utilized.

The vast majority of all real
estate owned assets are each
valued at $100,000 or less. Early
disposition of these lower-value
assets would maximize return
to the RTC and relieve a large
administrative burden in manag­
ing these properties. The use of




The disposition policy for loans
under $50,000 provided general
guidance for the sale of non­
performing loans with a book
value less than $50,000 from con­
servatorships and receiverships.

The RTC has a large num ber of
loans in the latter category, and
like real estate owned properties,
these assets are very labor- inten­
sive. Lower-dollar loans, exclusive
of those secured by real estate,
that are 60 days or m ore past
due can be competitively sold
on an absolute basis without
establishing reserve prices if
(1) a case to market and sell has
been approved within the appro^
priate delegations of authority, (2)
direct solicitation is made to all
parties responding to advertising
or identified on the loan investor
database as having expressed an
interest in the product type, and
(5) at least three legitimate and
conforming bids are received.
A sale can be canceled if fewer
than three bids are received.
To publicize the RTC's loan offer­
ings, beginning in October 1990,
a weekly calendar was published
in 7%e WaH Street
every
Thursday on the government
securities page. The advertise­
ment lists all weekly RTC loan
offerings, including pertinent
characteristics of the loan pack­
ages being offered, and a contact
and phone number for receipt
of a bid package. The advertise­
ment has been very successful
and has allowed investors to
have a centralized listing of all
offerings.
In October, the RTC, in its capac
ity as conservator or receiver,
entered into m aster contracts

with the Federal National Mort­
gage Association (Fannie Mae)
and the Federal Home Loan
Mortgage Corporation (Freddie
Mac) to allow conservatorships
and receiverships to swap loans
for agency mortgage-backed
securities formed from those
loans. However, these "m aster
agreem ents" only becom e
effective when incorporated by
reference in a supplemental
agreement for a particular pool
executed by a particular conserva­
torship or receivership and the
applicable agency. In November,
an addendum to the Fannie Mae
master agreement was included
to allow for cash sales. Through
this process, the RTC receives the

C onservatorship and R eceiversh ip Assets
U nder RTC M anagem ent (as of December 31, 1990)
Tota! Assets: $144 BiHion

Other
Mortgages
14.5%
Other
Loans

1-4 Famiiy
Mortgages
25.4%

6 .8 %
Detinquent
Loans

Other
Assets
9.0%

13.3%
REO
Cash and

11.5%

Securities
11.7%

Mortgage Backed
Securities
7.7%

Percentage of Gross Assets

14



best execution for loans that are
agency eligible, rather than sell­
ing to a middle buyer at a lower
price, who then approaches
the agencies.
During the year, the Asset
Marketing Branch was involved
in several m arketing activities
to promote RTC sales. A telem ar
keting program was implemented
on January 1 to respond to
public requests for RTC real
estate information. In addition,
a toll-free line was activated to
receive orders for the RTC real
estate inventory as well as to
answer questions. This service was
enhanced later in the year to
include an asset-specific inquiry
program providing customized
real estate information to callers.
The RTC marketing group also
participated in numerous national
and regional trade shows, con­
ferences, and exhibits to educate
the public about the RTC and to
provide information about the
properties being offered.
Other marketing tools were
developed in 1990 to increase
the public's awareness about RTC
assets. A brochure entitled Honj
ro Bmy Rea? Estate, detailing
products other than hard-copy
inventories that list the RTC's
real estate inventory, included
information such as whom to
contact and how to work with
the RTC to purchase assets. The
real estate inventory was also
available through four additional

programs including the CD ROM
(compact disc), floppy disk, a
dial-up program, and the pre­
viously mentioned asset-specific
program.
Beginning in 1991, the branch
will create a section dedicated to
securitization. The RTC will then
file a shelf registration with the
Securities and Exchange Com­
mission (SEC) and begin issuing
investment-grade securities.
Advisers, underwriters, and
other private contractors will be
hired to participate in the effort.

D is p o s it io n i*ro<yratm
FIRREA requires the RTC to iden
tify real estate assets suitable for
low- to moderate-income housing
and offer non-profit housing
organizations an exclusive 90-day
option to purchase these proper
ties. Non-profit housing organiza­
tions include consumer and
public interest groups, as well as
state and local housing agencies.
Some of these organizations also
act as clearinghouses to dissemi­
nate information about properties
available for sale by the RTC.
The RTC defined a broader role
for regional and local non-profit
organizations and public agen
cies in order to benefit from their
expertise and long term involve
ment in providing specialized
assistance in helping low- and
moderate-income families find
affordable housing. The role of




the technical assistance advisors
(TAA), which include a range
of public and non-profit sector
entities, would involve identify­
ing qualified buyers, assisting
with prescreening and prequal­
ification of purchasers, and help­
ing to arrange financing. As
envisioned, the combined in­
volvement of clearinghouses and
technical assistance advisors
would result in expanded mar­
keting and outreach, and also
enhance the RTC's ability to sell
its inventoiy of affordable proper­
ties to families who qualify under
the program.
RTC Oversight Board Policy State­
ment Number 14, "Use of State
and Local Housing Agency Bond
Financing to Facilitate the Sale of
Affordable Housing Properties,"
was adopted on March 15, 1990,
authorizing the RTC to expend
$6 million during fiscal year 1990
for commitment fees of low-interest bond money for financing
RTC affordable housing proper­
ties. This policy serves as a means
of maximizing the preservation
and affordability of residential
real property for low- and moder
ate incom e individuals and
makes use of state and local hous­
ing agency bond financing pro­
grams to facilitate the sale of
such properties. This policy state­
ment was amended in December
to authorize the RTC to continue
purchasing low-interest bond
commitments during fiscal year
1991, with the remaining balance

of the $6 m illion authorized
for fiscal year 1990. The RTC
worked with state revenue
bond programs to provide
nearly $190 m illion in financ­
ing for the affordable housing
program. At yearend, $22 million
had been utilized.
On August 10, the RTC Oversight
Board gave approval for the accept­
ance of offers as low as 80 percent
of the market value of property
from lower income purchasers
(at or below 80 percent of area
median income), and gave discre­
tion to accept offers from moderate-income purchasers (earning
81 percent to 115 percent of area
median income). In implement
ing this authority, the RTC will
take into account both its goal of
maximizing recovery from asset
sales and that of preserving the
availability and affordability of
residential real property for lowand moderate-income individuals.
On August 21,1990, the RTC
Oversight Board and the RTC
issued a "final rule" that created
and expanded home ownership
and rental housing opportunities
for low and moderate-income
persons through the RTC's Afford
able Housing Disposition Pro­
gram. According to the final rule,
qualified individuals, families,
non profit organizations, and pub­
lic agencies are given an exclusive
opportunity to bid on properties
for sale under the RTC's afford­
able housing program.

15

To facilitate affordable housing
sales, the RTC Oversight Board
approved a maximum of $250
million to be made available
for seller financing of affordable
housing properties. Seller financ­
ing will enable many individuals
who could not qualify for or find
standard financing to purchase
affordable housing properties.

units were sold to the Central
Texas Mutual Housing Agency
for $5.8 million. Two single­
family dwellings were sold to
the City of Houston, a local ur­
ban homesteading agency, for a
total of $50,000. The Southeast
Texas Housing Agency purchased
62 single-family homes for a total
of $444,900.

In October, guidelines were
issued for selling eligible single­
family properties under the
program that are listed with clear­
inghouses. Clearinghouses serve
an important function in the
affordable housing program,
and these guidelines streamline
the sales process.

At yearend, 7,913 affordable
housing properties had been
listed with clearinghouses. Of
those, 7,628 were single-family
homes. Thirty-six percent of the
single-family properties listed, or
2,728 homes, were sold through
the program, with an average
sales price of approximately
$36,694. Of the total properties
listed, 287, or 5.6 percent, were
multifamily properties, contain­
ing 35,000 housing units. Nine
properties, or 3.1 percent of the
multifamily properties listed,
containing 507 units, were sold by
yearend, with net sales proceeds
representing nearly 92 percent
of the total appraised value.

The RTC Oversight Board also
approved guidelines for the RTC
to offer real estate to public agen­
cies and non-profit organizations
to be used for public purposes
such as day care and housing for
the homeless. This conveyance
guideline allows the RTC to eval­
uate properties to determine
their recovery value. Under the
program, a property may become
eligible for conveyance if the net
estimated recoveiy value does
not justify paying the property's
holding and marketing costs. At
yearend, 11 of the 57 available
properties had been conveyed.
During 1990, 192 affordable
housing units were sold to three
separate state housing agencies.
Sixty-four duplexes with 128

1C




C o n fra f ?
The Contract M anagement
Section develops and implements
programs involving the private
sector in managing and disposing
of RTC assets whenever practical
and efficient. The section over
sees the contract award process
to ensure adequate competition
and participation of businesses
owned by women and minorities.

As part of the overall contracting
program, the section prepared
the first RTC seminar instructing
the private sector on "How to
Work with the RTC," scheduled
for spring 1991. The section
also drafted the RTC's standard
Selection and Engagement Proce­
dures to be utilized nationwide,
w hich will be finalized in
early 1991.
As part of its duties, the section
develops and administers the
Contractor Database System and
the Contractor Registration Pro­
gram, both of which have been
important tools in screening and
engaging contractors. At yearend,
40,552 firms were registered in
the RTC Contractor Database.
The database allows the RTC to
access contractor and contract
award data for m anagem ent
and Congressional reporting. At
yearend, 10,590 contract awards
had been made.
The section also ensures that
m inority and women-owned
firms are given the opportunity
to participate fully in all con­
tracting activities that the RTC
enters into for the goods and
services required to m anage
and dispose of assets acquired
from failed savings associations.
At yearend, 10,008 w om en
and m inority-ow ned firm s
were registered with the RTC
to provide services, and 2,129
contracts had been awarded
to such firms.

The section includes an asset oph
erations group, which develops
and implements asset manage­
ment information systems. These
systems provide comprehensive
and concise financial and man­
agement analysis and reporting
on the results of asset disposition.

Mud SM rveiM am ce
The Contractor Oversight and
Surveillance Unit was created in
late 1990, and will be operational
in early 1991. The unit will plan,
direct, coordinate, and evaluate
RTC activities associated with the
surveillance and monitoring of
private sector asset managers
and other contractors providing
asset management and other ser­
vices. The unit will also oversee
investigations of alleged fraud,
corruption, improper or prohib­
ited activities, and other viola­
tions of civil or criminal law by
the private sector asset managers
and other contractors. In addition,
the unit will establish national
policy and coordinate all activities
performed by each subordinate
regional office. H




R e s o h t^ o w s a n d
O p e r a t i o n s D iv is t o n

The Resolutions and Operations
Division operates insolvent sav­
ings associations in the RTC's
conservatorship program while
determining, and ultimately exe­
cuting, their most cost-effective
resolution. The division has two
groups in Washington, D.C.,
Operations and Resolutions, as
well as extensive operations in
the four regional offices.
O p e r a t io n s G ro u p
The Operations Group manages
and oversees conservatorships,
pays off insured deposits, and
investigates fraud and other
abuses. The overall goal is to
protect insured depositors and
preserve the thrifts' assets while
preparing the institution for
resolution. Comprising the
group are the Conservatorship
Operations Branch and the
Investigations Branch.
C o n s c rv a to rs A tip

Operations Branch
The Conservatorship Operations
Branch (Conservatorship Opera­
tions) develops policies and
procedures for the nationwide
conservatorship program that
ensure compliance with applicable
laws, the RTC Oversight Board's
objectives, and the RTC's goal of
minimizing the costs and risks to
the general public. The RTC's four
regional offices provide day-today guidance to individual conser­
vatorships in implementing these
programs, policies and procedures.

18



To maintain public confidence
in the deposit insurance system,
when a payoff of insured depos­
its is required, Conservatorship
Operations ensures that accurate
insurance payments are distrib­
uted as quickly as possible. The
branch also develops programs
that protect the value of conserv­
atorships' assets and facilitate
the disposition of those assets
in preparing for resolution. In
addition, the branch supports
the efficient closing of insolvent
institutions and subsequent
settlement and claims activities.
Conservatorship Operations plans
and negotiates with other govern­
ment regulators, governmentchartered investment agencies,
industry representatives, public
interest groups, and others to
effectively resolve issues, maintain
consistency, and coordinate joint
activities. The branch also moni­
tors compliance with established
policies, tracks progress in achiev
ing goals, evaluates efficiency,
and reports program activities.
!nstitutions in Conservatorship
Through 1990, the RTC managed
525 institutions in the conserva­
torship program. When the RTC
was established in August 1989,
Conservatorship Operations
immediately assumed responsi­
bility for 262 conservatorships
from the FDIC. Since that time,
346 conservatorships have been
resolved, leaving 179 in the pro­
gram at yearend. (An additional

6 thrifts never placed m conser­
vatorship were resolved m 1990,
bringing the total num ber of
resolutions through 1990 to 352.)
At the beginning of 1990, the
RTC was m anaging 281 thrifts
m conservatorship. During the
year, an additional 207 thrifts
were placed into conservatorship,
while 515 thrifts were resolved,
including the 6 institutions
never placed in conservatorship.
D ow nsizing C o n serv ato rsh ip
In stitu tion s
The RTC prepares conservator­
ships for resolution by "down­
sizin g" th e in stitu tio n s —
curbing unnecessary lending,
reducing costs, and selling
assets. The rapid, cost-effective
sale of conservatorship assets
has been a continuing focus
of the branch.
Reducing a conservatorship's
assets is instrumental not only
m preparing the institution for
a smooth resolution, but also
in accelerating the payment of
claims to creditors of the failed
institution. In addition, it lessens
dependence on the Department
of the Treasury to fund RTC
operations.
The branch uses the expertise
of market professionals to maxi­
mize the value of complex assets
and to market them effectively.
Working with financial advisors,
related government agencies, and




others, Conservatorship Opera
tions negotiated several m ajor
agreements that streamlined
m arketing efforts for mortgage
servicing rights and tax-exempt
bonds m 1990.
C onservatorship Asset
Sales an d O ther R eductions
During 1990, approximately
$52.7 billion m assets were sold
from conservatorship institu­
tions. Other book reductions in
assets totaled over $27.9 billion,
essentially resulting from pay­
ments on maturing securities
and the am ortization and
prepaym ent of mortgages.

charts shot*? fhe
MMWi&er of RTC conser^afors/nps
and reso?M^!OMs;

Conservatorship In stitu tion s in 1 9 8 9 and 1 9 9 0
Conservatorships
Established
Pre FIRREA 1989
Post-FIRREA 1989 (8/9-12/31)

Resolutions

262
56

37

1990

207

309*

Total 1989-90

525

346*

*Does not include 6 non-conservatorship institutions resolved in 1990.

In stitutions in C onservatorship in 1 9 9 0
Number of
Conservatorships
Beginning of 1990

281

New Conservatorships

207

Resolved Conservatorships

509*

End of 1990

179

*Does not include 6 non-conservatorship institutions resolved in 1990.

19

o/ Afor?gfn<yf
Savings institutions originate
mortgage loans that may be then
sold to other investors, such as
Fannie Mae, Freddie Mac, and
the Government National Mort­
gage Association (Ginnie Mae).
For a fee, the institutions gener­
ally retain the servicing rights to
those loans, collecting monthly
payments from the borrowers
and making rem ittances to
the investors. These servicing
rights are a valuable commodity
to a number of firms that are
willing to pay a percentage of
the unpaid principal balance
of the loans to obtain them.
Prior to the passage of FIRREA,
the FDIC held discussions with
Fannie Mae, Freddie Mac, and
Ginnie Mae representatives
concerning the im pact of the
conservatorship program on

77te /bMotmwgf charf shows fhe
boo?:
asscf sa?es and boo&
rfduc^onsyro7H cowsert7a?orshtps

grouped bi/ ma/or assp?
1 9 9 0 C onservatorship Asset Sa!es and R eductions
(dollars in millions)
Asset Type

Sates

Other Book
Reductions

Totat
Assets

$ 21,483.9

$ 13,583.4

$ 35,067.3

Mortgage Loans

6,493.3

9,851.8

16,345.1

Other Loans

2,152.8

4,014.7

6,167.5

Real Estate Owned

1,720.0

37.3

1,757.3

894.8

481.1

1,375.9

$ 3 2 ,7 4 4 .8

$ 2 7 ,9 6 8 .3

$ 6 0 ,7 1 3 .1

Securities

Other Assets
Total

Note: "Securities" include investment-grade securities and mortgage-pool securities. "Other loans" include commercial, consumer,
and student loans. "Real estate owned" assets consist of repossessed
residential and nonresidential real estate and land. "Other assets"
include a wide array of assets, such as real estate held as invest­
ment, some types of mortgage servicing rights, office equipment,
and subsidiary companies of controlled institutions.

20



the portfolios that were owned
by these agencies and serviced
by troubled institutions. As a
result of the discussions, a
decision was made to retain
the services of two financial
advisory firms to assist the
FDIC in determ ining policies
regarding the portfolios.
Institutions transferred to the
RTC's control in August 1989
had servicing rights of approx­
imately $55 billion in unpaid
principal balance. The RTC
established procedures for an
orderly disposition process
and was successful in selling
approximately $2 billion of
these servicing rights by the
end of 1989.
In 1990, the RTC acquired a
total of 412 mortgage servicing
portfolios with an unpaid prin­
cipal balance of approximately
$157 billion. During the year,
a total of 196 portfolios were
sold with an unpaid principal
balance of approximately $37
billion. The RTC received
approximately $477 m illion,
or 1.28 percent of the unpaid
principal balance.
Early in the sales process, the
branch's staff in W ashington,
D.C., assisted by the financial
advisors, coordinated the dispo­
sition effort. As the regions hired
staff, m uch of the disposition
responsibility was moved to
the regions.

The RTC developed standardized
documents to sell and transfer
servicing rights, which are unlike
any other asset handled by the
RTC. A standard broker agreement
was developed to obtain the services of qualified brokers to assist
in analyzing, evaluating, market­
ing, and selling mortgage servicing
rights. W ith this standard agree­
ment, managing agents could
obtain appropriate broker services
more easily. In addition, the RTC's
requirements for all brokers inter
ested in marketing mortgage serv­
icing portfolios were standardized.
A standard purchase and sales
agreement for mortgage servic­
ing rights, incorporating custom­
ary representations (reps) and
warranties, was also adopted. Stan
dardizing the agreement and in­
demnifying buyers against losses
from breaches of those reps and
warranties have significantly
increased the value of the servic
ing rights and their marketability.
Im plem enting reps and warranties, backed by the RTC and con
forming to industiy standards, was
a major achievement, enhancing the
RTC's reputation as a market player.
To support the reps and warran­
ties adopted in the standard
purchase and sale agreement for
mortgage servicing rights, Con­
servatorship Operations issued
a competitive bid solicitation to
hire a private sector contractor to
administer breach notices and
pay related claims.




7!a.r Rrempt Bond Sa/c.s
Between 1981 and 1986, savings
and loans were involved in
$12 billion to $15 billion in taxexempt bond financings, most of
which funded low-income hous­
ing projects. By the end of 1990,
the RTC was responsible for
approximately $3 billion in assets
financed by tax-exempt bonds.
The RTC is developing a pro­
gram to identify, evaluate, and
resolve issues related to the dispo­
sition of these assets, including
how to maximize value by pre­
serving the tax-exempt feature of
the financing. These options also
serve the interests of the bond­
holders and provide for continued
affordable housing. Strategies
continue to be developed aimed
at stabilizing the portfolio, reduc­
ing holding costs, and expediting
asset disposition. A private finan­
cial advisor was selected to assist
the RTC in the m anagem ent
and disposition of these assets.
SMbsfdta?!/ Saies
In order to track and manage
subsidiary sales more effectively,
a management reporting system
was initiated to capture financial
management information on con
servatorships' and subsequent
receiverships' subsidiaries. At
yearend, institutions controlled by
the RTC had approximately 2,000
subsidiaries.
RedMrmgf Costs
Conservatorship Operations
issued guidelines on appropriate

salary structures for varying
sizes of conservatorships to
balance the goal of reducing
executive compensation with­
out im pairing operational effi­
ciency. A 1990 survey found that
conservatorships had decreased
the salary compensation of the
three most highly paid execu­
tives by an average of 32 percent.
An estimated $15 million was
saved resulting from these salary
reductions.
!n su ran ce Protection
fo r Depositors
P a y m e n ts

During 1990, nearly 11 million
depositor accounts in insolvent
thrifts were protected from finan­
cial loss. Almost 9 million of these
were protected as a result of the
purchase and assumption of fail­
ing thrifts by financially strong
institutions. Approximately
1.6 million insured depositor
accounts were transferred from
insolvent thrifts to other institu­
tions in insured deposit transfer
transactions. When these types
of resolutions were not possible
and the thrifts were closed,
"payout" checks totaling almost
$6 billion were distributed to
323,000 depositors for their
insured funds.
Setdewent 71as& Force
The RTC established a national
task force to develop a standard
nationwide set of systems and
procedures to maximize efficiency
in processing and tracking deposit

21

insurance payments and claims.
The group has coordinated
major enhancements to the
Automated Grouping and Auto­
mated Payout Systems to expe­
dite the rapid payment of
insurance to the public. The
task force is also developing
systems to facilitate and oversee
quick and accurate settlement
with acquirers of insolvent
institutions.
tVn(/br?n 7?e(?{dat!ons
Conservatorship Operations
worked with the FDIC m
developing and im plementing
uniform rules for the Savings
Association Insurance Fund
(SAIF) and the Bank Insurance
Fund (BIF). Brochures and
notices were prepared to inform
the public of changes in the
consolidated insurance of
accounts regulations.

RTC advance

chart summartzps
the t/ear;

1 9 9 0 RTC Advance Activity

Principal Amount Only

(dollars in millions)
Tot at
Beginning
Balance

$11,046.5

Conservatorships Receiverships
$10,077.0

$

969.5

PLUS:
New Advances Made

18,280.3

16,678.5

1,601.8

LESS:
Repayments

(6,579.3)

(1,332.0)

(5,247.3)

(16,376.7)

16,376.7

$ 9,046.8

$13,700.7

TRANSFERRED:
at Resolution
Ending
Balance

22




0.0
$22,747.5

Paym ent o f C reditor Ciaims
General Trade Creditor C2a:ms
During 1990, policies were
issued clarifying priorities and
procedures for the payment of
claims of general trade creditors
against failed institutions and
RTC-controlled conservator­
ships. Essentially, goods or
services obtained by the RTC's
managing agents for conserva­
torships are to be paid in full
within regular business billing
periods. General trade creditors
of form er associations, how ­
ever, are considered to have
unsecured claims.
To ensure that creditor claims
are handled accurately and
expeditiously, Conservatorship
Operations designed a Creditor
Claims Tracking System. The
branch has installed the system
in all regional and consolidated
offices throughout the country.
Cush Liquidating Dividends
In 1990, Conservatorship Opera­
tions developed guidelines for
preparing and processing divi­
dend cases. After analyzing a
receivership's financial condition,
recom m endations are made for
liquidating dividend payments.
During the year, enough cash
was accumulated through asset
sales to begin making cash liqui­
dating dividend paym ent in
September. By yearend, 40 receiv­
erships had paid cash liquidating
dividends totaling $1.9 billion
to their creditors.

By protecting insured deposi­
tors, the RTC becomes the major
creditor of receiverships and
obtains the largest share of the
liquidating dividend payments.
For the year, the recovery rates
on liquidating dividends from
the receiverships ranged from
11.5 percent to 71.75 percent.
Funding and Liquidity
P ro g ra m s
RTC Advances to Coits^ruatorshtps/
Recetuershtps In early 1990, the
branch began assuming a new,
m ore active role in overseeing
and managing the funding opera­
tions in conservatorships. The
branch focused on developing
policies and procedures covering
liquidity, the use of RTC advances
and collateral, emergency fund
ing, and funds projections.
During the year, the RTC
advanced about $16.7 billion
to conservatorships for liquidity
needs. The funds were used to
replace high-cost liabilities and
to fund the payment of maturing
deposits and Federal Home Loan
Bank advances as institutions
were prepared for resolution.
In 1990, the RTC advanced $1.6
billion to receiverships for a vari­
ety of needs. These included the
requirement to repurchase certain
assets that are returned or "put
back" by acquiring institutions.
7?TCAdvance Repayments RTC ad
vance repayments are considered




secured claims that are to be
repaid in full. Like liquidating
dividends, advance repayments
are paid from the sale of an
institution's assets.
In August 1990, the RTC began
collecting repayments of advances
from both conservatorships and
receiverships. By yearend, over
$6.6 billion had been repaid.
Fnadtngf and Ltqmdtt^ Analysts,
Processmgf, and Reporting
Procedures and systems for
projecting funding needs and
monitoring repayments were
also established to ensure that
(1) borrowings did not exceed
what was necessary and (2) insti­
tutions repaid advances as
quickly as financial resources
would permit. Specific systems
and reporting requirements
established during the year
include: a database to project
funding needs from the RTC
and evaluate the liability and
interest rate structure as it related
to funding needs; rolling sixweek liquidity projections for
conservatorships to request fund­
ing amounts and indicate the
purposes for those funds; and

The/odoivmp chart shows
the Hqtmdatinp dividends and
advance repayments ./rom RTC
conservatorships and receiverships;

tMMO RTC Advance R epaym ents Liquidating Dividends
(dollars in billions)
Advance
Repayments
from
Conservatorships
$1.3

Advance
Repayments
Hwn

LiqaMattag

Receiverships

M vM ends

Tota!

$1.9

$8.5

23

quarterly and weekly repayment
schedules for projecting repay­
m ents of RTC advances from
receiverships and conservatorships.
T ota! Cash R ecovery
fro m Liquidating Assets
Liquidating dividends and
advance repayments from the
conservatorships and receiver­
ships are paid from funds
collected through asset liquida­
tion. Approximately $8.5 billion
was distributed in 1990 to repay
RTC advances and to pay cash
liquidating dividends.
R esoiu tions an d Ciosings
Po^ci/ Development
a n d G m daw ce

Once the RTC Board has author­
ized the resolution of a failed
institution, staff from a number
of different operational areas are
called into action to:
. facilitate the transfer of the in­
stitution to the acquiring entity;
. provide timely payment of
insurance to depositors, if
necessary;
. establish and administer a
process for payment of creditor
claims;
. ensure proper accounting for
the transaction; and
. m onitor compliance by all
parties with the term s of the
resolution agreement.

24




In 1990, one of the RTC's most
difficult challenges was to put in
place the staff and operational
controls needed to handle an
unprecedented level of resolution
activity. To meet these objectives,
competent staff were recruited
and trained, and operating policies
and procedures were established
to guide field staff in the resolu­
tion activity. To m onitor the
progress and effectiveness of
field staff, information systems
and programs were established.
OpTion to Rep ;achose Assets
To facilitate the resolution
process, the RTC may allow
putback options to institutions
that are acquiring assets, perm it­
ting the acquirers to return a
portion of the assets to the RTC
for repurchase after a specified
review period. During 1990, the
RTC transferred approximately
$55 billion in assets to acquirers.
Of those assets, approximately
$52 billion, or 60 percent,
contained putback options for
repurchase by the RTC. By yearend, the RTC had repurchased
$15 billion, or 42 percent, of the
assets with putback options;
acquirers had retained $9 billion
in assets. The estimated value of
the assets that remained subject
to repurchase at yearend was
$10 billion. Conservatorship
Operations developed the Asset
Repurchase Tracking System
to m onitor the assets subject
to repurchase and to project
cash flow needs.

!7mwsMrec? Deposits Reportmgr
In 1990, Conservatorship
Operations developed and
implemented a reporting system
to track the volume of uninsured
deposits at new conservatorships
and at those identified by the
RTC as a payout or insured
deposit transfer.

FIRREA gave the RTC authority
to bring civil—but not criminal—
actions against individuals for
negligent or fraudulent conduct
causing losses to the thrift indus­
try. In December 1989, the RTC
established the Investigations
Branch to oversee investigations
and civil recovery actions for
money damages and restitution
against the directors, officers, and
other professionals associated
with failed institutions.
During the first full year of its
existence, the Investigations
Branch concentrated on staffing
the four regional and 14 consoli­
dated offices with personnel
experienced in financial investi
gations of thrifts and banks, and
other specialists. They include
accountants, attorneys, apprais­
ers, law enforcement agents,
securities and commodities
brokers, and form er lending
and operations officers.
In-service training was provided to
investigative staff at all levels to
familiarize them with RTC inves­
tigative policies and procedures;

define the unique problems,
schemes and transactions that
are frequently found in thrift
failures; and increase individ­
ual investigative skills in the
specialized claim areas—blanket
bond, director and officer liabil­
ity, and professional malpractice.
In addition to developing the ad
ministrative structure and training
staff, the branch concentrated on
the following areas during 1990:
. completing a preliminary
investigative review of each
thrift institution under the
RTC's authority;
. prioritizing cases deserving
full investigative attention,
with a close watch on statuteof-limitation constraints;
. assigning specific staff at all
investigative sites to coordinate
criminal investigations with
U.S. Attorneys' offices and the
Federal Bureau of Investigation
(FBI) and to monitor the sub
mission of criminal referrals;
. developing standardized for­
mats for prelim inary findings
reports, plans of investiga
tion, case review work plans,
and solicitations and task
orders for contracting;
. establishing task forces or
working groups to foster
standardization in several
other crucial areas;




. developing and installing
a nationw ide inform ation
system for tracking all inves­
tigations in RTC-controlled
thrifts (at yearend, this track­
ing system was approximately
80 percent com pleted for
on-line operation nationwide);
and
. developing a crim inal referral
data base for m aintaining the
status on the top 100 crim inal
cases.
C oordination with O ther
G overnm ent A gencies
The Department of Justice is
responsible for prosecuting
criminal conduct committed by
insiders and parties related to
RTC-controlled savings associa­
tions. RTC investigators work
closely with the FBI, U.S. Attor­
neys' offices, and the U.S. Secret
Service to provide the necessary
documents, work papers and,
in some cases, expert testim ony
needed to prosecute crim inal
conduct in a failed thrift. Each
RTC site has a crim inal investi­
gations coordinator who is
responsible for coordinating
requests for documents needed
in a crim inal case and keeping
com m unication open among
the various agencies involved.
The crim inal investigations
coordinator acts as a liaison,
attends the local Bank Fraud
Working Group meetings, and
follows up on the status of
m ajor crim inal referrals.

The RTC has been coordinating
its investigations of securities
issues with the Securities and
Exchange Commission's Savings
and Loans and Banking Unit,
Enforcement Division. This inter­
agency cooperative effort has
been extremely helpful in the
Drexel Task Force investigation. It
has also assisted in other criminal
securities investigations relating
to insider trading and securities
fraud involving material m is­
statement of financial condition,
omissions, misrepresentation,
and excessive commissions and
fees.
On December 17, 1990, the RTC
and other member agencies of
the National Bank Fraud Work­
ing Group agreed to coordinate
actions to recover losses to finan­
cial institutions and to seek civil
penalties and restitution for
crimes committed against finan­
cial institutions. Using FIRREA
and the Crime Control Act of
1990, the RTC and other agencies
can choose from an array of civil
remedies designed to punish the
perpetrators of fraudulent conduct
against financial institutions,
including:
- restitution and recovery actions
brought by the RTC and the
FDIC as receiver, conservator,
or liquidator;
. administrative civil money
penalty actions or restitution
actions brought by the regulator;

25

. civil forfeitures;
. SEC sanctions; and
. civil penalties brought by
the Department of Justice
under Section 951 of
FIRREA.
Under this agreement, the
agencies pledged to cooperate
in choosing the most effective
remedy to:
. m aximize the recovery of
m onies obtained through
crim inal conduct,
. sanction wrongdoers,
. allocate government resources
so that litigation is conducted
efficiently, and
. secure the quickest and most
effective relief in each case.
Organization and Staffing
The Investigations Branch in
Washington oversees and coor­
dinates the RTC's nationwide
investigative program. Investi­
gators are organized into depart
ments and are assigned to the 14
consolidated field offices report
ing to an Assistant Director for
Investigations in each field
office. Senior Investigations
Specialists in the regional
offices oversee the field inves­
tigations and provide policy
guidance, training, and
investigative support.

26




At the beginning of 1990, the
Investigations Branch staffed two
employees in the Washington
office, a Senior Investigations
Specialist in charge at three of
the four regional offices, and a
skeleton force of investigators
in the field who had been trans­
ferred to the RTC from the FDIC.
By yearend, the Investigations
Branch employed 361 investiga­
tors and support staff nation­
wide, with 34 vacancies in the
process of being filled.

of 1990, the RTC had resolved
37 thrifts and was managing 281
thrifts in conservatorship. By
yearend, 352 thrifts had been
resolved and 179 thrifts were
in conservatorship, totaling 531
institutions for which the Inves­
tigations Branch had already
conducted or was about to con­
duct preliminary investigative
reviews. Preliminary Findings
Reports were completed on 489
institutions, or 90 percent of the
thrifts, by yearend.

The Investigations staff is supple­
mented by private investigators
and accountants who are used to
develop cases, support litigation,
and provide specialized skills to
complex investigations.

In July 1990, a quarterly case
review process was established
to aid in managing the investiga­
tions caseload and in allocating
investigative resources.

The Investigations Branch's
primary goal in 1991 is to move
cases along rapidly toward
successful recoveries. To achieve
this, the branch must ensure
outside resources are qualified
and engaged to support profes­
sional liability claims. In 1991,
investigators will initiate more
civil fraud cases against common
borrowers and focus resources
on developing claims against
securities brokers.
Case M anagem ent
The branch investigates each
thrift under the RTC's control
to determ ine potential civil
recoveries and whether crim ­
inal conduct was involved in the
thrift's failure. At the beginning

The investigation of each insti­
tution could result in up to six
potential civil liability claims
as well as criminal referrals. The
civil liability areas are: (1) fidelity
bond, (2) director and officer
liability, (3) accountant liability,
(4) attorney m alpractice,
(5) appraiser m alpractice, and
(6) securities and commodities
broker m alpractice. Of the 531
savings associations under the
RTC's control, all civil liability
investigations in 38 thrifts had
been closed, indicating that the
preliminary investigative review
did not find any pursuable fraud,
negligence, or misconduct as the
cause for the failure of the insti­
tution. In the rem aining 493
institutions, the branch had 2,098
open claims under investigation.

Civii Claim s and Law suits
By yearend, the RTC had brought
or inherited from the institutions
under its control 85 lawsuits
against directors, officers, and
professionals who may have con
tributed to the failure of a thrift.
During 1990, no case reached
the point of an issued judgment;
however, nine claims were set­
tled with the defendants, resulting
in the recovery of $14,195,000.
The RTC follows a policy of
engaging in only cost-effective
litigation; thus, unless sufficient
assets are identified, litigation
will not be pursued. Other
enforcement methods may be
appropriate, however, including
referral of a case to the Depart­
ment of Justice for criminal
prosecution or enforcement of
the civil penalty and forfeiture
provisions established by FIRREA
The Office of Thrift Supervision
may also take action to prohibit
insiders and professionals from
future employment in the finan­
cial industry, and may obtain
orders to freeze the assets of indi
viduals under investigation.

Southern District of New York.
The filing accuses Drexel and
its co-conspirators of a wide
range of illegal conduct, includ­
ing coercion, extortion, bribery,
and m isrepresentation of the
value and liquidity of ju n k
bonds underw ritten by Drexel.
Lincoln Savings
and Loan Association
/rvine, Ca^i/brnia
The RTC, in its capacity as con­
servator for Lincoln Savings and
Loan Association, F.A. (Lincoln
Savings), Irvine, California, filed
a civil complaint against a num
ber of defendants including
Charles H. Keating, Jr., former
Chairman of Lincoln Savings.
The suit charges the defendants
with violating both state and
federal racketeering laws. In
addition, the suit alleges common
law fraud, civil conspiracy, breach
of fiduciary duties, and gross neg­
ligence. The amount of the suit
is $1,716 billion. In August 1990,
the Office of Thrift Supervision
filed administrative charges
against Keating and five other
officials, seeking $40.9 million.

B ranch at yearend 1990;

Group, inc.




and number o/*open claim s nnder
mvestigatiow b^ the 7nvestigfatio?^s

7%e D r e x e l B n m h a n t L a m b e r t

The RTC and the FDIC, in their
corporate capacities as conserva­
tor and/or receiver, filed a $6.8
billion consolidated proof of
claim on November 14, 1990,
against The Drexel Burnham
Lambert Group, Inc. in United
States Bankruptcy Court for the

The^bMonHng? chart shon?s the t$/pe

Fidelity Bond

102

Director and Officer Liability

424

Accountant Liability

317

Attorney Malpractice

333

Appraiser Malpractice

351

Securities and Commodities Broker Malpractice

571

27

CewTrMsf Savmgrs
The RTC, in its capacity as conser
vator for CenTrust Savings Bank
(CenTrust), Miami, Florida, filed
a complaint against a num ber of
defendants, including David L.
Paul, former Chairman, and
former directors and officers
of CenTrust, for breach of their
fiduciary duties to CenTrust. The
claim charges the directors and
officers with, among other things,
wasteful expenditures, including
artwork totaling more than $29
million; and excessive salaries,
bonuses, and dividends. The
directors are also being charged
with permitting certain junk
bond investments that resulted
in massive losses for CenTrust,
estimated to be as m uch as
$250 million.
Civil R ecovery Tools
To maximize the recovery of
assets at the least possible cost
to taxpayers, a cooperative
arrangem ent has been estab­
lished with the Civil Division
of the Department of Justice,
OTS, and the FDIC. Under this
arrangem ent, allocation of
responsibility for bringing civil
actions is based on the most
effective and efficient division
of labor and the most appropri
ate use of the array of available
civil remedies.
Using these tools, in early July
1990 a coordinated effort by the
Internal Revenue Service, the

28




Federal Bureau of Investigation,
and the RTC resulted in the
seizure of $3,249,279 from NCNB
Texas, Harlingen, Texas. Accord­
ing to the Complaint and Seizure,
the President of Valley Federal
Savings Association, McAllen,
Texas, allegedly misappropriated
funds and placed them in NCNB
after Valley had been taken over
by the RTC. Currently, four other
civil forfeiture cases are being
worked jointly with Department
of Justice.
In the CenTrust case, where
m assive taxpayer losses are
estimated, the former chairman
and principal shareholder of
CenTrust, David L. Paul, is
the primary focus of both the
RTC and the Office of Thrift
Supervision. OTS has a temporary
cease and desist order against
David Paul, requiring him to
post security in the am ount of
$30.8 m illion. The RTC filed a
com plaint in the U.S. District
of Florida on November 9, 1990,
charging Paul and 15 other
form er officers and directors
of CenTrust with breaches of
fiduciary duty, waste, and m is­
m anagem ent, and asking the
federal district court to order
the defendants to repay damages
in excess of $250 million.
C rim inai R e fe rra ls and
P ro secu tio n s
During the Investigations
Branch's first year of operation,
the suspected crim inal conduct

found during the prelim inary
investigative reviews rem ained
at approximately the same
level. By yearend, 276 thrifts,
or 52 percent of the 531 institu­
tions placed under the RTC's
control, had crim inal referrals
forwarded to the Departm ent of
Justice. Total referrals numbered
1,320, or an average of 5 refer­
rals per institution.
The Departm ent of Justice
announced in late 1990 that
m ore than 500 defendants
had been charged and more
than 350 individuals had been
convicted in m ajor savings
and loan fraud cases. A case
is considered "major," by Depart­
ment of Justice standards, if
(a) the am ount of fraud or loss
is $100,000 or more; (b) the
defendant is an officer, director,
or owner (including shareholder)
of the institution; or (c) the
schem es involve convictions
of m ultiple borrowers in the
same institution.
Estim ate o f Frau d
and Crim inal Conduct
in RTC Thrifts
Based upon preliminary reviews
of RTC-controlled institutions
as of December 31, 1990, about
52 percent of the thrifts had
suspected crim inal conduct
referred to the Departm ent of
Justice; and fraud and potential
crim inal conduct by insiders
contributed to the failure of
about 41 percent of the thrifts.

The government's policy in early
1989 was to take charge of the
worst institutions first. Those
with massive losses and/or
known fraud, criminal conduct,
and serious insider abuse were
taken under the RTC's control
as quickly as possible. As new
thrifts come under the RTC's
control over the next few years,
a trend toward less criminal con­
duct is likely, both m magnitude
and number of referrals.

Among the top 100 are the
following RTC cases:

RTC P rio rity C rim inat Cases
Top 1 0 0
A priority list of 100 "top" crimi­
nal cases was compiled in June
1990 by representatives of the
Office of Thrift Supervision, the
FDIC, and the RTC. Sixty of the
cases are currently under the
RTC's control. The list was devel­
oped to focus the Department of
Justice's attention on the thrift
cases that, in the view of the
regulators, represented the most
egregious crim inal violations.
As a result, the Department of
Justice assigned additional
resources to many of the cases.
The RTC responded by focusing
its resources on developing
additional criminal referrals, trac­
ing funds, producing documents,
and otherwise assisting the FBI
and U.S. Attorneys.

Westport Savings Bank
Hanford, California




Pima Savings
and Loan Association
Tucson, Arizona
Brookside Savings
Los Angeles, California
Lincoln Savings
and Loan Association
Irvine, California

Commonwealth Savings
and Loan Association
Fort Lauderdale, Florida
Peoples Heritage Savings
and Loan Association
Salina, Kansas
Midwest Federal
Minneapolis, M innesota
United Savings Bank
Paterson, New Jersey

The/oHowmg chart shoifs
the a/)pro.i rHta?e /Ygnres of
RTC cowfroHet? savmgts awd loan
prospcuftoTts as o f D ecem b er 3jf,

P ro secu tio n s
Information/Indictments

173

S&Ls Victimized

62

Defendants Convicted

80

Prison Sentences

(total) 145 years

Fines Imposed

$ 1,087,600

Restitution Ordered

$16,391,855

29

Caprock Federal Savings
and Loan Association
Lubbock, Texas

felony convictions—one of
FIRREA's most fundamental
standards.

General Savings Association
Henderson, Texas

In addition, the Investigations
Branch implements other safe­
guards, including background
checks, to screen prospective
contractors and individuals
seeking to provide services for
the RTC. Background checks
are provided for two specific
groups:

M eridian Savings Association
Arlington, Texas
Peoples Savings and Loan
Llano, Texas
Security Savings Association
Texarkana, Texas
Sunbelt Savings Association
Dallas, Texas
Trinity Valley Savings
and Loan Association
Cleveland, Texas
Vernon Savings and Loan
Vernon, Texas
B ack g rou n d Checks
and C o n tra cto r V erification
FIRREA sets standards of com­
petence and integrity for individ
uals intend ing to perform
contract services for the RTC.
The RTC has issued a regulation
entitled "Qualifications of Ethical
Standards of Conduct for, and
Restrictions on the use of Confi
dential Information by Indepen­
dent Contractors," 12 CFR Part
1606. Prospective contractors
must self-certify that they are in
compliance with these standards,
including the absence of any

30




. RTC and conservatorship
employees and
. contractors (officials of the
contracting firm and the
individuals designated to
work on the specific project).
The RTC works primarily with
Treasury's Financial Center
(FINCEN), the Federal Bureau
of Investigation, the U.S. Secret
Service, regulatory agencies, and
private investigative firms to
conduct comprehensive criminal
history and background checks
on organizations and individuals
to be employed or hired by the
RTC. Extensive data bases and
other resources are available
in-house.
The RTC also routinely consults
the OTS (CIIS System), the
Office of the Comptroller of the
Currency, the Federal Reserve
System, and the FDIC's Financial
Institutions Investigative and
Enforcement Records System for

additional inform ation. Records
from the SEC and the National
Association of Securities Dealers
(NASD) are exam ined w hen
a securities background is
required. SEC records are regu­
larly checked through FINCEN,
when available. The RTC is
also establishing links with
other sources, such as the
Departm ent of Housing and
Urban Development and
Fannie Mae, for additional
background inform ation.
Prescreening RTC contractors
through background checks is
essential to preserving the integ­
rity of the contracting process.
Background checks serve two
primary purposes: (1) to deter
those with criminal backgrounds
and regulatory or statutory bars
from applying for RTC contracts,
and (2) to permit the RTC to iden
tify those people who may have
falsified responses to RTC staff
in their self-certifications and
contract proposals.
The RTC gains m axim um
effectiveness from background
checks by com pleting them
prior to contract awards. If a
problem discovered through
a background check can be cor­
rected by the contractor prior
to the award, the contract can go
forward without delay. Further­
more, the RTC can feel reason­
ably com fortable that the
contractor and the project team
will perform in a responsible

m anner. The preaward stage of
the contract process offers the
RTC its maximum leverage to
structure the project team in an
appropriate manner.
At yearend, the Investigations
Branch had completed back
ground verifications for 1,569
RTC employees and 182 poten
tial contracting firms, including
1,676 key individuals of the
firms.
!n vestigative Services
C o n tracted T h rough th e
P riv ate S ector
In the latter half of 1990, the
Investigations Branch began
hiring qualified private contrac
tors to assist in the investigation
of certain aspects of potential
civil claims. For exam ple,
contractors have been used to
search for hidden assets of cul
pable individuals to assess the
economic feasibility of a civil
suit. Other services provided
by private contractors include
engaging in detailed document
organization and review, organ­
izing related facts and allega­
tions, and preparing evidentiary
materials and exhibits in special­
ized areas such as accounting
malpractice or securities fraud.
The RTC field offices have used
outside contractors to supplement
the num ber of investigators
available to pursue high priority
cases quickly and to provide
specialized expertise in very
complex cases.




During the year, outside investi­
gators, accounting firms, and
securities/commodities specialists
assisted with 95 separate cases
in 77 institutions nationwide.

The Resolutions Group is a
marketing organization charged
with the sale of insolvent savings
institutions and/or their deposits.
In addition to thrifts placed
into conservatorship, the group
resolves thrifts in the Accelerated
Resolution Program (ARP), while
working closely with the Office of
Thrift Supervision. The group's
fundamental goal is to minimize
the cost to the taxpayers in meet­
ing the U.S. Government's "full
faith and credit" obligation to in­
sured depositors. Additional goals
of the Resolutions Group include:
. assuring the public of the high­
est level of integrity in every
stage of the resolution process;
. speeding the resolution pro­
cess to return the depositories
and associated assets to the
private sector at the earliest
date;
. maintaining public service
by avoiding the liquidation of
institutions wherever practi­
cable; and
. meeting certain institutionspecific goals, such as attempt­
ing to retain the ethnic identity

of ownership at insolvent
institutions previously owned
and/or operated by minorities.
During 1990, the RTC resolved
515 thrifts (compared to 57 that
were resolved during the RTC's
first five months of operation,
August through December
1989). The 515 thrifts were head­
quartered in 40 states and the
Commonwealth of Puerto Rico,
and held a total of $95.7 billion
in deposits, 99.7 percent of
which were insured by the
government.
The deposits were contained
in 9.8 million deposit accounts
and serviced by 2,562 banking
offices located in 42 states. Only
Delaware, Hawaii, Montana,
New Hampshire, Rhode Island,
South Carolina, South Dakota,
Vermont, and the District of
Columbia did not have one or
more deposit-taking office sold or
closed by the RTC during 1990.
Eighty-five percent of the thrift
resolutions (94 percent of all
deposits) resulted in continua­
tion of service to depositors and
their communities. Healthy
financial institutions acquired
the institutions, their branches,
and/or associated deposits. In
the 268 cases where the RTC was
able to avoid a payoff, taxpayer
savings were estimated at $1,425
billion, compared to the projected
cost of simply closing down all
of these thrift institutions.

R esotu tion Types
The RTC executes three types
of resolutions of failed savings
institutions to discharge the
government's full faith and credit
obligation for insured deposits —
(1) purchase and assumption
transaction, (2) insured deposit
transfer, and (5) insured deposit
payoff. The most costly type of
resolution is a payoff, followed
by an insured deposit transfer
and a purchase and assumption
transaction, respectively. Institu­
tions that are paid out generally
have a poor deposit base
(attracting no acquirer interest),
a greater negative net worth
balance, and poor asset quality.
The "cost" of a resolution is the
estimated dollar amount to be
spent by the RTC to cover dif­
ferences between cash outlays
and future net asset recoveries
from the resolution of insolvent
savings and loans, the shortfall
representing a loss to the RTC.
This loss consists primarily of
the negative net worth of the
insolvent institution plus losses
from asset sales, reduced by
acquirer premiums.
Purchase and Assumption
Transaction
The preferred resolution is
a "purchase and assumption"
(P&A) in which the acquirer pur­
chases some or all of the assets
of the failed thrift and assumes
some or all of the liabilities,
including all insured deposits.
As part of a P&A transaction, the

32




acquiring institution usually pays
the RTC a prem ium for the
assumed deposits, decreasing the
taxpayers' total resolution cost.
For 1990 P&A transactions,
premiums totaled $1.25 billion.
Premiums for individual deposit
portfolios ranged from less than
$1,000 to $162 million, averaging
2 percent of the institutions'
core deposits (those deposits in
accounts with balances under
$80,000 that are not generated
through outside brokers). Pre­
m ium s paid to the RTC ranged
from below 1 percent to more
than 8 percent.
In a P&A transaction, if the
acquiring institution does not
keep the deposits in the Savings
Association Insurance Fund
(SAIF), it must pay "exit fees" to
SAIF and "entrance fees" to the
Bank Insurance Fund (BIF). In
1990 the exit and entrance fees
paid to the two funds in con­
nection with RTC transactions
totaled over $155 million.
As part of a P&A transaction,
the acquirer purchases assets at a
mutually agreed-upon price. The
percentage of assets transferred
to the acquirer upon closing
varies. During 1990, an average
of 55 percent of total assets were
transferred to the acquirers. A sig­
nificant portion were purchased
with putback options, allowing
the acquirer to return the assets
to the RTC within a specified

period. Certain other assets are
not transferred, but are subject
to "call" by the acquirer for up
to 18 m onths. Because of these
factors, the percent of assets
ultim ately passed by the RTC to
acquirers cannot be known for
some tim e after closing. Assets
not purchased (as well as those
purchased but subsequently
returned using the putback
option) becom e the property of
the RTC receivership that was
established upon resolution.
The m onies received from
subsequent sales are used to
decrease the governm ent's
ultim ate cost of resolving the
thrift.
The RTC completed 172 P&A
transactions during 1990, or 55
percent of all resolutions, involv
ing $75.1 billion in deposits, or 78
percent of the total. The estimated
resolution cost for P&A transac­
tions totaled $21.1 billion, or 28.2
percent of the insured deposits
in the resolved institutions.
insured Deposit Transfer
In an "insured deposit transfer"
(IDT), the winning bidder oecomes
the paying agent for the RTC as
the insured deposits are trans­
ferred to the acquiring insti­
tution's books. An IDT is a less
attractive resolution option than
a P&A for two reasons. First, if
exit and entrance fees must be
paid to the government's insur­
ance funds, the fees are the
RTC's responsibility (up to the

dollar prem ium received) and
the cost of resolution to the RTC
is increased. Second, resolution
costs are increased due to the
generally limited transfer of assets
(only 18 percent of all assets
were transferred to acquirers as
part of IDT transactions in 1990).
These two factors increased the
resolution costs for IDTs to 47.5
percent of insured deposits in
1990, or $7,095 billion.
During 1990, there were 96 IDTs,
or 50 percent of all transactions,
that involved $14.8 billion in
deposits, or 16 percent of the
total. Although IDTs generally
involve smaller institutions
(64 percent of the institutions
resolved through IDTs had
deposits of less than $100 million),
this type of resolution is avail­
able for all institutions on an
"as-needed" basis. During the
year, five thrifts with deposits
exceeding $500 million were
resolved through the IDT process.
IDT premiums are generally less
than premiums received for
P&A transactions. In 1990, IDT
premiums averaged .87 percent
of core deposits, ranging from
nominal premiums to nearly five
percent of core deposits.
ZnsMred D ep osft

A "payoff" of insured deposits is
the most costly form of resolution.
The RTC receives no premium
for the deposits, undertakes
the processing costs for creating
and mailing checks to insured




depositors, and fully assumes
all carrying costs involved with
the holding of assets.
Payoffs are most likely to occur
in states where the financial
com m unity is generally dis­
tressed, resulting in few local
bidders. (In 1990, 60 percent
of payoffs took place in Texas,
Louisiana and New Mexico.)
Payoffs also generally involve
thrifts with limited franchise
value, indicated by a high per­
centage of deposits in accounts
with balances exceeding $80,000
and/or generated through brokers.
Forty-seven payoffs were complet­
ed during the year, or 15 percent
of all resolutions. Deposits in the
thrifts resolved through payoffs
equalled $5.8 billion, or 6 percent
of the total. Over 60 percent of
payoff resolutions involved
thrifts with less than $100 million
in deposits; however, six of the
thrifts had deposits between
$250 million and $500 million.
The estimated cost of the 47 pay­
offs was $3,349 billion, or 58.4
percent of the insured deposits
in the thrifts.
N ation a! and R egiona!
R esoiu tions
The Resolutions Group divides
its work among the Major Case
Transactions Group, headquar­
tered in Washington, D.C., and the
four regional offices. Resolution
activity is conducted by on-site
personnel in the regions and

coordinated by the Washingtonbased Field Resolutions Branch.
Working closely with the regions,
the Washington-based organiza­
tion manages the disposition
of larger financial institutions,
generally those with over $500
million in deposits.
During 1990, the Major Case
Transactions Group completed
39 resolutions of institutions
with deposits of $58.9 billion,
or 62 percent of total deposits.
Thirty-two were P&A transac­
tions; seven were IDTs. Eleven
major case resolutions involved
multiple acquirers, including six
of the thrifts with more than
$1 billion in deposits. Included
in the W ashington group's
caseload were two institutions
historically owned by minority
Americans. Valley Federal Savings
Association, McAllen, Texas, with
deposits of $530 m illion, was
acquired by the International
Bank of Commerce, Laredo,
Texas, predominantly owned by
Hispanic Americans, and minor­
ity preference was extended to
the acquirer. Caguas-Central of
Caguas, Puerto Rico, with depos­
its of $1.2 billion, was acquired
by the Puerto Rican subsidiaiy
of Banco de Santander Sociedad
de Madrid. Due to the non-U.S.
citizenship of the m ajority of
Banco de Santander stockholders,
this transaction was not consid­
ered a "like minority" resolution,
and no minority preference was
given to the acquirer.

33

1 9 9 0 RTC C o n s e rv a to rs h ip a n d R e s o iu tio n A ctivity

34



A=4
R=2

PR
A=1
R=1
LEGEND
B=Beginning Conser. at 12/31/89
A=Conservatorships Added in 1990
R =C ases Resotved in 1990




pi v a to rs h ip a n d R c s o iu tio n A ctivity

(d o lla rs in m il l i o n s )

C onservatorsh ip s
Oeposits*

Beginning

Added

Deposits*

Bah
Resotved

D eposits*

E n d in g

1,340

2

66

4

1,340

2

2

259

0

0

2

259

0

66
0

5

8,183

3

7,045

5

10,283

3

4,945

10

2,884

5

614

10

1,387

5

2,1H

19

14,398

17

12,762

28

13,578

8

3,582

13

2,239

4

982

13

2,239

4

982

2

192

2

101

2

192

2

101

11

3,165

14

13,380

12

7,811

13

8,755

4

931

2

196

5

1,074

1

53

21

3,319

17

4,616

30

4,677

8

5,258

2

268

1

58

3

326

0

0

2

199

4

1,378

4

322

2

1,255

14

3,905

3

4,813

15

3,474

2

5,244

0

0

1

50

1

50

0

0

26

5,214

13

1,204

20

1,631

19

2,787

4

$

$

$

0

0

1

40

0

0

1

40

3

1,630

3

907

3

1,630

5

907

0

0

4

4,509

2

2,948

2

1,560

2

292

0

0

2

292

0

0

1

2,179

5

259

4

2,439

0

0

6

915

10

863

8

1,196

8

581

6

1,949

4

329

9

2,207

1

71

4

1,164

3

291

7

1,455

0

0

5

7,947

12

2,990

3

614

14

0,323

6

1,745

4

1,654

6

810

4

2,587

1

30

7

11,439

4

8,706

4

2,764

1

236

4

1,295

2

690

5

841

0

0

2

677

2

677

0

0

3

1,374

4

536

3

1,283

4

627

8

2,032

3

471

8

1,616

3

887

0

0

2

3,314

2

3,314

0

0

1

1,723

4

4,262

1

1,723

4

4,262

0

0

1

1,255

1

1,255

0

0

1

668

0

0

0

0

1

688

5

411

2

102

5

411

2

102

82

27,283

37

10,361

67

18,740

52

8,904

3

1,756

2

267

4

2,014

1

9

4

606

3

1,315

4

483

5

1,436

1

1,462

1

119

2

1,581

0

0

0

0

2

108

2

108

0

0

2

270

0

0

2

270

0

0

1

21

1

200

2

221

0

0

38:

$ MO, 1 8 8

207

$ 9 4 ,8 2 6

$ 1 0 5 ,3 2 9

179

,6 8 5

nservatorship
m-conservatorslup institutions resolved in 1990

309**

1 9 9 0 R e s o iu tio n s by T r a n s a c tio n T ype
Num ber of Resoiutions - 315

Purchase &

Cost o f R esoiu tion as a P e rce n t o f L iabiiities a t C onservatorsh ip*
Percent

60
50

Payoff

tnsured Deposit Transfer

Purchase & Assumption

*Cost of Resolution is the estimated dollar amount to be spent by the RTC to
cover differences between cash outlays and future net asset recoveries from
the resolution of insolvent S&Ls, the shortfall representing a loss to the RTC.
This loss consists primarily of the negative net worth of the insolvent institution
plus losses from asset sales, reduced by acquirer premiums.

36







1 9 9 0 R e so iu tio n Cost a n d Savin gs by S ta te (dollars in millions)
State

Resolved

Resolution

Institutions

Cost
$

268

Estimated
Savings
$

26

Alabama

4

Alaska

2

175

10

Arizona

5

3,201

172

Arkansas

10

619

10

California

28

1,448

191

Colorado

13

1,060

2

2

35

3

12

2,252

90

Georgia

5

262

10

Illinois*

31

749

119

Indiana

3

34

8

Iowa

4

47

6

15

1,488

79

Connecticut
Florida

Kansas
Kentucky
Louisiana*

1

3

1

21

1,049

4
11

Maryland

3

377

Massachusetts

2

900

7

Michigan

2

31

15
24

Minnesota

4

873

Mississippi

8

389

13

Missouri*

10

878

39

Nebraska

7

426

8

Nevada*

1

0

3
9

New Jersey

3

71

New Mexico

6

323

1

New York

4

1,776

90
10

North Carolina

2

108

North Dakota

2

168

3

Ohio*

4

266

59

Oklahoma

8

250

6

Oregon

2

114

112

Pennsylvania

1

333

25

Puerto Rico

1

120

42

Tennessee

5

109

1

Texas

67

10,428

223

Utah

4

487

34

Virginia

4

95

5

Washington

2

110

7
4

West Virginia

2

13

Wisconsin

2

86

1

Wyoming*

3

34

4

T o ta !(4 1 )

315

$ 3 1 ,4 5 5

$ 1 ,4 8 7

* Includes 1 thnft never placed in conservatorship

37

In 1990, the four regions and the
Field Resolutions Branch com­
pleted 272 resolutions of institu­
tions with deposits totaling $32.9
billion, representing 86 percent
of all cases resolved. Of the 272
resolutions, 136 were P&As, 89
were IDTs, and 47 were payoffs.
Twenty-four cases involved mul­
tiple acquirers. Twelve resolved
institutions were historically
owned by minority Americans,
seven of which were acquired
by like-minority investors. No
acquirer was found for three
of the thrifts, and payoffs were
undertaken.
A ccclcra te d R esolu tion
P ro g ra m
In 1990, the RTC, in cooperation
with the Office of Thrift Supervi­
sion, initiated the Accelerated
Resolution Program based on the
premise that early intervention
in a troubled thrift could create
significant taxpayer savings.
Under the program, troubled
institutions are marketed by the
RTC, the OTS, and the thrifts'
management. When a buyer is
found, the thrift is closed by the
OTS, placed with the RTC, and
immediately reopened by the
buyer. Many thrifts in the pro­
gram are solvent, but are failing
to meet FIRREA-mandated capi­
tal levels. Participating thrifts
must be perceived as having
significant franchise value,
and the management of the
institution must agree to par­
ticipate. Under this program,

33




staff from the RTC and the
Office of Thrift Supervision
in Washington, D.C., as well as
field staff of both agencies work
closely to complete the transaction.
Nine thrifts were targeted for the
1990 pilot program. By yearend,
four were resolved; one failed and
was placed in conservatorship;
and four were still in the program.
The 1990 results of the pilot
program, involving $3.9 billion
in insured deposits, were favor­
able. The four institutions that
were resolved under the pro­
gram were completed as P&A
transactions. In aggregate, the
cost of the resolutions was 12.3
percent of the insured deposits,
far less than the cost of other reso­
lutions during the year—29 percent
of insured deposits for the other
168 P&As, and 33 percent of
insured deposits for all 315
resolutions transacted in 1990.
The required net RTC funding
for the four resolutions under
the ARP was also less than that
for typical P&A transactions. The
four resolutions required fund­
ing of 23 percent of insured
deposits; the other P&As required
cash equal to 51 percent of
insured deposits. The funding
requirem ents were lower
because the acquirers purchased
81 percent of all assets, far more
than the 52 percent purchased in
the other P&As. The larger asset
purchases in the ARP may be

attributable to the fact that the
assets are m ore attractive than
they are in an institution in the
conservatorship program.
The Accelerated Resolution
Program is not a panacea for the
savings and loan crisis. Only a
portion of the future cases that
the RTC will need to handle
consists of viable candidates
for the program. Nevertheless,
the program is significant and
extremely cost-effective. A sub­
stantially larger num ber of
resolutions under the program
are projected for 1991.
Size o f R esoived T h rifts
Thrifts resolved by the RTC
during 1990 ranged in size from
a single banking office with less
than $2 m illion in deposits
(Equity Federal Savings Bank,
Denver, Colorado) to one with
$6.8 billion in deposits and 105
banking offices (Empire Federal
Savings Bank, headquartered
in Buffalo, New York).
T h rift Saies and A cquiring
O rgan ization s
The 268 resolutions in 1990,
excluding the 47 payoffs, involved
a total of 311 different acquiring
financial institutions. One hun­
dred and seventy-six organizations
acquired one or more of the 233
institutions (or their deposits)
that were sold as "whole fran­
chises." One hundred and fortyfive institutions participated in
the "branch break up" sale of

one or m ore of the 35 thrifts
resolved on less than a full
franchise basis. Ten financial
institutions participated in
both types of transactions.
To place a bid on a failed RTC
thrift, an investor must have
charter and acquisition approval
from an appropriate regulatory
organization: the Office of the
Comptroller of the Currency, the
Office of Thrift Supervision, or a
state banking authority, as well
as insurance of accounts pro
vided by the FDIC. The winning
bidder is the organization pre­
senting the least costly proposal
to the RTC, provided that the total
proposal cost is less than the
projected cost of a payoff.
FrawfTnse T ra n sa cts us
The RTC resolved 253 institutions
in 1990 on a "whole franchise"
basis, in which only a single
financial institution was involved
in the acquisition of the thrift or
its deposits. These thrifts held a
total of $69.1 billion in deposits
and were acquired by 176 differ­
ent financial institutions. Winning
bidders included three of the
nation's ten largest bank holding
companies and three of the
country's ten largest thrift hold­
ing companies. The majority
of the winning bidders were,
however, financial institutions
with less than $ 1 billion m assets,
including many organizations
with less than $ 100 million in
assets.




B ran ch

During 1990, 11 percent of
the savings and loans that were
resolved, or 35 thrifts, were sold
to two or m ore acquirers. A
total of 145 financial institutions
acquired one or more branches
m these transactions. Seventeen
of these transactions involved
only two acquirers, and four of
the sales involved ten or more
successful bidders. The thrifts
that sold as branch-break-ups
had total deposits of $20.8 billion,
23 percent of all deposits not
associated with thrifts that were
paid out.
Six of the savings and loans with
multiple acquirers were billion
dollar plus depositories and
frequently multi-state operations.
Twenty-two of the branch sale
resolutions had deposits under
$250 million. The majority were
headquartered in states with
ts a breaMoMW

q/ resoled msfttMftows by
dppost? a m o u n t.'

Deposit A m ounts of 1 9 9 0 Resoived tn stitu tio n s
No. of
ResoL

%Totat
ResoL

Totat
Deposits ($M)

% Tata!
Deposits

Over $2.5 billion

8

2.5%

$33,525

35.0%

$1.00Bto$2.499B

12

3.8%

$17,744

18.5%

$500MMto$999MM

16

5.0%

$10,942

11.4%

$250MM to $499MM

30

9.5%

$10,271

10.7%

$175MMto$249MM

35

11.1%

$ 7,756

8.1%

$100MMto$174MM

59

18.7%

$ 7,874

8.2%

$ 50MM to $ 99MM

74

23.5%

$ 5,373

5.6%

Under $50 Million

81

25.7%

$2,217

2.3%

$ o f Deposits

39

a strong orientation toward
smaller, local financial institu­
tions, including Illinois, Kansas,
Arkansas, and Iowa, which together
accounted for 54 percent of all
branch resolutions.
A cq u ire rs

A num ber of well-capitalized
financial institutions viewed the
RTC resolution process as a costeffective method to enter new
marketing territories or to further
increase market share in areas of
current operations. After receiving
approval from their regulators,
2 7 organizations completed two
or more whole-franchise transac­
tions with the RTC in 1990.
Great American Holding Co.,
parent of Kilgore Federal Savings
and Loan Association, Kilgore,
Texas, acquired the largest num­
ber of institutions, a total of
13 in Texas, with an aggregate
of $1,967 billion in deposits. In
terms of deposits, the largest
acquirer was BankAmerica
Corporation, which acquired
eight institutions with total
deposits of $12,808 billion. Other
organizations completing four
or more whole-franchise acquisi­
tions included Banc One Corp.
(four acquisitions, with $3,420
billion in deposits); Barnett Banks,
Inc. (five acquisitions, with $1,187
billion in deposits); NCNB Corp.
(five acquisitions, with $.898
billion in deposits); and Security
Pacific Corp. (four acquisitions,
with $6,908 billion in deposits).

40




In addition to these whole-fran­
chise acquisitions, Banc One,
Barnett and Security Pacific
also made branch purchases
during the year.
Not all multi-acquirers were
multi-billion dollar institutions.
Consolidated Bank and Trust
Company, a Black Americanowned bank headquartered in
Richmond, Virginia, with assets
of $62 million at the end of 1989,
was the successful bidder for
two small Virginia thrifts, both
form erly operated by Black
Americans. In Colorado, the newly
chartered Mesa National Bank
acquired two Grand Junction
thrifts and began operations as
a multi-bank holding company
with seven offices and just
under $200 million in deposits.
B road en in g the
!n v e sto r B ase
A side benefit of the RTC's resolu
tion activity has been an increase
in the capital base of America's
financial institutions, perceived
as critical during the 1990s.
While the vast majority of RTC
acquirers have been previously
existing financial institutions,
there have been nearly a dozen
"de novos" where capital, not
previously dedicated to banking,
was brought into the industiy.
From a dollar perspective, the
most significant increase in capi­
tal has come from larger organi­
zations—those that are primarily
banking houses and those for

which financial activities are
secondary—that have utilized
RTC sales to expand their
m arket presence.
By law, the RTC may sell thrift
depositories (as opposed to assets)
only to financial institutions with
charters from a primary regulator
and insurance of accounts from
the FDIC. While all acquirers
have met these two criteria, the
parent organizations of some of
the RTC acquirers are better
known for their non-banking
activities. Parent corporations of
winning bidders in 1990 include
Household International, Inc.;
Hy-Vee Food Stores, Inc.; Interna­
tional Brotherhood of Boiler­
makers; International Telephone
and Telegraph Corp.; National
Old Line Life Insurance Corpora­
tion; Sears Consumer Financial
Corporation; Temple-Inland; and
Westinghouse. The additional
capital dedicated by these indus­
trial and service organizations to
their banking activities serves to
further strengthen the industry.
Resoiution Costs and Savings
The cost for the 315 institutions
resolved in 1990 is estimated to
be $31.5 billion. The final cost
will not be determ ined until
all assets associated with the
institutions have been sold and
the full realized value is known.
Cost to taxpayers resulting from
the resolutions is estimated to
be $1.4 billion less than the cost

if all the resolutions had been
accomplished as payoffs. With
payoffs, the RTC (1) receives no
premium, (2) assumes the admin­
istrative cost of closing out the
insured accounts, and (5) has to
carry and sell all assets.
The net RTC funding associated
with the 315 resolutions was
$57.1 billion. The majority of
the increm ental $25.6 billion
over the resolution cost is
expected to be returned to the
RTC as the $59.1 billion (book
value) of retained assets (those
not transferred to acquirers as
part of a resolution transaction)
are sold by the RTC.
* AfMr&efiwy S e c t io n
The Marketing Section's role
within the Resolutions Group is
to generate interest among poten
tial franchise purchasers. During
1990, the section played a major
role in the presentation of ten
RTC seminars held in eight states
and the District of Columbia. The
seminars, entitled "How To Work
With The RTC," attracted 5,900
participants. While the seminars
were multi-faceted, and many
attendees were interested exclu­
sively in asset purchases and/or
contracting, nearly 20 percent of
the participants, or 1,050 individ­
uals, took part in separate break­
out sessions detailing "How To
Purchase a Savings Association."
Interest is further stimulated
through the placement of adver




tisem ents in newspapers and
magazines around the country,
including The WdM-Street /oitrttai
and theTimertcan Bcm^er. To
reach the minority community,
the RTC has advertised in the
Black- orientated NBA Toda^/,
published by the National Bank­
ers Association. The RTC has also
placed Spanish-language adver­
tisements to promote the sale of
Hispanic American thrifts and at­
tended seminars and trade shows
targeted at minority investors.
The Marketing Section attempts
to convert the leads generated by
seminars, trade shows, and print
advertisements into qualified
potential investors carried on the
RTC's National Marketing List.
All federally insured financial
institutions expressing interest
to the RTC that are approved
by their primary regulators are
immediately added to the National
Marketing List, m aintained
by the Marketing Section. The
section frequently communicates
with the financial institutions'
regulators, who decide whether,
at any given time, an organiza­
tion under their regulation is
able to participate in an RTC
acquisition. On an on going basis,
banks, thrifts and their holding
companies are added to, removed
from, and readmitted to the Na­
tional Marketing List as regulators
complete exams and/or become
aware of significant capital, man­
agement, or other changes within
their regulated organizations.

Private investors and foreign
financial institutions are added
to the National Marketing List as
they apply for and present evi­
dence to the RTC of their ability
to obtain a charter and receive
insurance of accounts. Financial
statements, credit bureau reports,
and public information sources
are reviewed for all new appli­
cants. If the RTC believes that a
private investor will be unable to
obtain a charter, the investor is
referred to the potential primary
regulator for a definitive state­
ment on the investor's ability to
obtain a charter.
In addition to responding regu­
larly to current and potential
investors regarding all aspects
of the application and resolution
processes, at the beginning of
each marketing round (generally
once a quarter) the Marketing
Section advises approved inves
tors on the National Marketing
List of the thrifts to be marketed
by the Major Transactions Group
in Washington, D.C. Additionally,
the section works with the four
regions to generate regionally
directed mailing lists used to
promote the sale of the locally
marketed thrift operations. All
mem bers of the public request­
ing inform ation on any specific
thrift to be marketed are for­
warded public inform ation
packages providing non-confidential m aterial. Approved
investors who execute a confi­
dentiality agreement are then

41

provided with a bid package and
generally invited to attend a bid
conference at which the acquisi­
tion process is discussed.

m axim um m aturity of nine
m onths and with an interest
rate set at one percent over
Treasury bills.

M inority Owned T h rift
R esoiu tion s
The RTC began 1990 with 15
thrifts in conservatorship that
were historically owned and/or
operated by minority Americans.
During 1990, eight additional
minority-owned thrifts were
placed in conservatorship. Of
the 25, two had been owned by
Asian Americans, 11 by Black
Americans, and 10 by Hispanic
Americans. In general, these insti­
tutions are small, with median
assets of less than $25 million.

Working within this policy, the
RTC resolved 14 minority institu­
tions in 1990. Acquirers in eight
of the resolutions were of the
same ethnic identification as the
previous owners. Four of these
transactions used the interim
capital assistance option, borrow­
ing a total of $4.26 million. Three
of the remaining 14 institutions
were acquired by majority insti­
tutions because no acceptable
bids were received from minority
bidders. The RTC paid off all
insured deposits of the remain­
ing three m inority institutions
because no acquirer could be
found.

On January 30, 1990, the RTC
Board of Directors issued the
"RTC Interim Statement of Policy
Concerning the Resolutions of
Minority Owned Depository Insti­
tutions." The policy states that:
. U.S. citizens of the same ethnic
identity as the previous owners
of the marketed minority thrift
will be given preference over
all other bidders.
. Winning bidders who are U.S.
citizens and of the same ethnic
identity are eligible to apply
for interim capital assistance
in an amount not to exceed
two-thirds of the initial capital
required by the primary regula­
tor. This assistance is generally
in the form of a loan with a

42




M inority P articip atio n
The National Marketing List,
with 1,500 approved investors,
includes 45 approved organiza­
tions (or individuals) identifying
themselves as minority investors
(including 5 women investors).
The minority investors include
4 thrifts, 13 banks or bank hold­
ing companies, and 28 private
investors (including the
3 wom en investors). Minority
investors, like all approved
investors, are advised of all
m arketing activities.
W hen marketing m inority insti­
tutions, the RTC generally buys
additional space in local newspa­

pers to advertise the sale of the
institution. This stimulates addi­
tio n al in terest in th e th rift,
particularly from private investors.
Although all investors attending
a bid conference and/or receiv­
ing a bid package are required to
identify themselves and execute
a confidentiality agreement,
many do not apply to be placed
on the National Marketing List.
This may be because their inter­
est lies exclusively in learning
more about one particular institu­
tion rather th an in long-term
involvement in the thrift acquisi­
tion process. The number of
minority investors participating
in the RTC resolution process
is, therefore, substantially more
than those included on the
National Marketing List.
During 1990, minority investors
(including minority-owned finan­
cial institutions, and corporate
and private investors) expressed
interest in acquiring a thrift
from the RTC by attending a bid
conference and/or receiving a
confidential bid package on 145
occasions. The RTC received 29
bids from minority investors,
including bids placed on minority
and majority institutions. Eight
minority investors placed winning
bids on nine RTC thrifts. These
included eight acquisitions of
institutions previously owned
by minorities and one unit pre­
viously controlled by majority
management, n




The Finance and Administration
Division develops, evaluates, and
operates the Corporation's fund
ing programs and capital markets
activities. The division also directs
all RTC administrative support
services and coordinates the
operations of the Corporation's
financial branches.
C a p ita f A fa r h c ts B r a n c F t
The Capital Markets Branch
manages the method and ulti­
mate disposition of all securi­
ties and related assets of RTC
conservatorships and receiver­
ships; develops and directs
national sales programs to pool,
securitize and sell loans and
other assets from RTC conserva­
torships and receiverships; and
m onitors capital markets and
the broker/dealer com m unity
in order to ensure that the RTC
receives m axim um value from
asset dispositions. The branch
also provides guidance and
assistance to the RTC's regional
offices and m anaging agents in
evaluating and managing inter­
est rate risk, downsizing efforts,
and liquidity management.
The branch's sales desk became
fully operational during 1990,
directly managing the sale of
$17.3 billion (principal amount)
in securities. This included $12.9
billion in mortgage-backed securi­
ties and $1.6 billion in high-yield
bonds, in addition to mortgagebacked and financial-related
derivatives, interest rate swaps,

investm ent-grade corporate
bonds, and U.S. Treasury
securities.
To effect these sales, the branch
used a competitive bidding, or
auction, process in which bro­
kers/dealers, institutional-end
buyers, and issuers competed
with one another for the assets.
The branch developed an "expo­
sure management process" to
permit as many potential buyers
as possible to bid on RTC securi­
ties and to manage the RTC's
exposure to each winning bidder
between the trade and settlement
dates. In 1990, 180 firms pro­
vided financial statements to the
RTC enabling them to bid for
RTC securities during the year.
Separate computerized tracking
systems were also created to mon
itor all indications of interest
received from potential bidders
for any securities held by RTC
institutions; detail the activity
and performance of every firm
given an opportunity to bid on
RTC securities, including each
firm's bid amounts, the number
of times the firm has bid, and the
type of security the firm has bid
on; and track the approval and
disposition process for all securi
ties sales requiring Washington
approval.
Also during 1990, the branch
conducted research into and
designed the param eters of a
computerized tracking system
permitting the RTC to centralize

43

all securities sales in Washington
and providing computerized
support for the clearance of all
securities sales. The system is
scheduled for implementation
in 1991.
The branch assumed direct
management of the RTC's high
yield bond holdings in 1990. In
July, the branch issued its first
detailed listing of its holdings
and arranged to provide quarterly
publication of the holdings there­
after through a facsimile retrieval
service. In O ctober 1990, the
RTC engaged a financial advisor,
Salomon Brothers Asset Manage­
m ent, to provide an overall
analysis and evaluation of the
RTC's high yield portfolio and
assist the RTC in developing an
overall strategy to maximize
value in disposition of the bonds.
At yearend, the RTC had sold
$1.6 billion (face value) in highyield bonds, up from $656 million
in 1989.
In 1990, the branch also laid
the groundwork for the RTC's
securitization of loan assets.
Early in the year, the RTC hired
Greenwich Capital Markets to
advise on strategy, to assist in
training Washington and regional
staff, and to develop procedures
for securitizing RTC assets. In
addition, the branch and Green­
wich carried out a demonstration
project in which non-conforming
residential mortgage portfolios
from five receiverships were

44




prepared for securitization. The
branch also negotiated agree­
ments between the RTC and
Fannie Mae, and the RTC and
Freddie Mac. The agreements
allowed the RTC to swap conform­
ing residential mortgage loans
directly with these entities for
mortgage-backed securities. Swaps
totaled $300 million in 1990.
The branch developed a shelf
registration program during the
year to enable the RTC to issue
its own mortgage-backed bonds
directly into the marketplace.
Sales of these securitized loan
pools will begin in 1991, and
will enable the RTC to increase
substantially the sale of its
performing mortgages.
C orporate Funding Section
The Corporate Funding Section
coordinates with the RTC Over­
sight Board and the U.S. Depart­
ment of the Treasury to provide
funding for RTC conservator­
ships and receiverships. The
section manages all borrowings
from the Federal Financing Bank
(FFB) and the use of any appro­
priated funds for resolutions,
pre-resolution costs, asset repur­
chases, and advances to conser­
vatorships and receiverships for
liquidity and high-cost funds
replacement, and receives all
dividends and repayments of
advances, either deploying such
funds in place of additional FFB
borrowings or repaying such
borrowings.

In 1990, the section provided
funding of $18.3 billion for 1,098
advances to conservatorships
and receiverships, and processed
$6.6 billion in advance repay
m ents from 206 institutions.
During the year, the section's
responsibility for required docu­
mentation for RTC advances was
delegated to the regional level.
The section also transferred
funds totaling $47.9 billion to
finance the initial cash outlay for
the 315 resolution transactions
consummated during the year.
Also during the year, the section
inaugurated and improved proce
dures to create rolling six-week
projections of all the major com­
ponents of the RTC's sources and
uses of funds. This assisted the
Department of the Treasury in
managing its short-term borrowing
requirements, thereby helping to
reduce the RTC's borrowing costs.
To improve the efficiency and
accuracy of financial reporting,
the section developed a single
automated funds tracking system
to replace the existing system.
The new system enables the
section to track all wire disburse­
ments by type and use and all
receipts of advance repayments
from RTC conservatorships and
receiverships, as well as liquidat­
ing dividends. The automated
funds tracking system also
calculates the interest accrual
on outstanding advances to con­
servatorships and receiverships.

In addition to maintaining and
generating daily management
accounting reports, the section
created several new reports
reflecting the RTC's growth and
the increasing sophistication and
variety of requests from within
and outside the RTC. The new
reports include some detailing
budgeted versus actual informa
tion, and projected activity for all
RTC funding uses and sources.
F i n a n c e Reporting Section
The Financial Reporting Section
coordinates, prepares and reviews
RTC financial information pre
sented to senior management,
the Congress, the Executive
Branch and other government
agencies, and the public.
The Corporation and the Over­
sight Board must submit to the
Congress and the President annual
reports containing audited state­
ments of the RTC's financial con­
dition and operations. Additional
reports and testimony with up­
dated financial information must
be prepared semiannually for
the Congress. FIRREA requires
the RTC to update its estimates
of contingent liabilities quarterly.
Reports on the status of RTC obli
gations concerning 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 periodic or
ad-hoc basis by the Oversight




Board, Congressional committees,
the General Accounting Office,
the Department of the Treasury,
the Office of Management and
Budget, and the Congressional
Budget Office.

Operations Division's Conser
vatorship and Receivership
Operations and Claims Sections,
and worked with the FDIC's
accounting division, which
handles the RTC's accounting.

The Financial Reporting Section
also assists in solving financial
reporting problems as they
emerge, in coordination with the
FDIC, and reviews the methodol­
ogies used to develop financial
reports, recommending improve ments where appropriate.

The RTC receives its operating
and loss funds quarterly with the
Oversight Board's approval after
submitting an operating plan
and funding request to the RTC
Board and the Oversight Board.
The Financial Reporting Section
prepared all funding requests
with the operating divisions'
assistance.

Semiannual reports covering
activities from October 1, 1989,
through March 31, 1990, and
from April 1, 1990, through
September 50, 1990, were sub­
mitted by the RTC to the Over­
sight Board and the Congress
in April and December 1990. In
addition, the section developed
and issued all RTC financial re
ports to the Oversight Board and
the Department of the Treasury.
The section closely tracked the
RTC's borrowing lim it under
FIRREA in 1990 because the
RTC was close to the limit during
most of the year, and it appeared
that the RTC would exceed the
limit several times. The RTC was
also required to report to the
Oversight Board several times
during the year concerning its
borrowing. To track the borrow
ing limit, the section integrated
data from the Corporate Funding
Section and the Resolutions and

A dm inistrative Section
The Administrative Section pro­
vides essential support services
to the RTC in Washington and
throughout the country. The
section handles personnel admin­
istration, in coordination with
the FDIC, and oversees all leasing
and acquisition of facilities both
in Washington and in the field.
The section is also responsible
for facilities maintenance and
related administrative services
in Washington.
In 1990, the section provided
personnel policy guidance,
transactional assistance and
oversight support to the RTC's
4 regional offices, 14 consoli
dated offices, and 14 sales cen­
ters. During the year, 5,500 field
employees were brought on
board to accomplish the RTC's
mission. In addition, the office

45

furnished personnel support to
headquarters' organizations by
establishing positions and hiring
486 employees. Total agency staff­
ing grew from 1,103 at the begin­
ning of 1990 to 4,919 at yearend.
During the year, the section
assisted the field organizations in
evaluating potential office space
and leases for new office space,
and redesigning existing space
to improve efficiency. To provide
sufficient work space for the
RTC's rapidly growing staff, the
section also assessed numerous
potential office sites, monitored
renovation efforts, and devel­
oped efficient work space plans
for four headquarters locations.
Ongoing essential office services,
such as mail, printing, supply,
security, employee health unit,
and other building services,
continued to be provided to
the grow ing population at
three additional RTC locations
in 1990. H

46




B ran ch




The RTC faces a multitude of
unique and complex legal issues,
requiring an experienced and
diverse legal staff. Comprehensive
legal services to the RTC are pro­
vided by the RTC Legal Branch,
one of the FDIC Legal Division's
five branches. The branch
advises the RTC's Washington,
regional, and field staffs on a
number of issues. These include:
resolutions, conservatorship and
receivership operations, agency
status issues, taxes, environm en­
tal issues, asset disposition and
marketing, commercial litigation,
agency litigation, securitizations,
financing, and claims against
directors, officers, employees
and insurers of failed thrifts.
The Special Counsel heads the
Legal Branch and serves as the
principal legal adviser to the
RTC's Executive Director. The
branch is composed of the Wash­
ington Office, and staffs in the
four regional offices and 14 con­
solidated field offices. During
1990, the number of RTC attor­
neys rose to 425 nationwide—
70 in the W ashington Office
and 353 in the regional and
consolidated field offices.

The W ashington legal staff
provides direct legal support to
the RTC Washington staff. It also
provides adm inistrative and
policy direction to the legal staffs
in the regional and consolidated
field offices.

During 1990, the headquarters
staff was reorganized into seven
substantive areas: Conservatorship
and Receivership Operations Sec­
tion; Resolutions Section; Asset
and Real Estate Management
Section; Securities and Finance
Section; Litigation Section;
Professional Liability Section;
and Regions and Administration
Section.
Among the accomplishments of
the headquarters staff during the
year was creating the Standard
Asset Management and Disposi­
tion Agreement (SAMDA), includ­
ing attachments, and redefining
the relationship among outside
counsel, asset managers and
the RTC Legal Branch. The Wash
ington staff also developed an
automated tracking system to
support the Legal Branch's
responsibilities in the SAMDA
program. In addition, the staff
developed training for the
regional and consolidated office
staffs on the role of the RTC
Legal Branch in the SAMDA pro^
gram and the SAMDA automated
tracking system. The branch will
expand and refine the SAMDA
data system to include all RTC
legal matters. The expanded
system will be called the RTC
Legal Information System.
During the year, the Washington
staff also created standardized
contracts, agreements, and pro­
cedures, including (1) standard
contracts for goods and services

47

for the RTC and RTC conservator­
ships; (2) controls and procedures
for RTC contracting; (5) standard
agreements for the sale of mort
gage servicing rights and whole
loans, including the development
of the RTC's standard representa
tions and warranties; and (4)
directives on receivership claims,
severance benefits for conservator
ship employees and termination
of conservatorship employees.

guidance, m anagem ent and
adm inistrative support to the
consolidated field offices' legal
staffs in cooperation with the
W ashington Office, including
dissem ination and im plem en­
tation of uniform policies and
procedures. In addition, the
regional offices provide liti­
gation m anagem ent and coor­
dinate the hiring of outside
law firms.

Other 1990 accom plishm ents
included drafting regulations on
the RTC lending program to oper­
ating conservatorships; reviewing
the 1988 FSLIC assistance agree­
ments, as mandated by FIRREA;
providing legal support for the
implementation of the RTC's
Affordable Housing Disposition
Program; providing legal support
in connection with the receiver
ship of the Federal Asset Disposi
tion Association; negotiating a
memorandum of understanding
with the U.S. Fish and Wildlife
Service regarding the evaluation
of RTC properties for possible
conservation problems; and
building staffs of the Professional
Liability Section in each regional
office and consolidated field
office. This section will complete
its hiring in 1991.

The lawyers in the consolidated
field offices either directly or
through outside counsel assist
with the transactional work,
prosecute and defend in lawsuits,
and provide general legal advice
and consultation to the RTC.

ComsoMdaied
The four regional legal staffs
provide legal support to the RTC
regional directors and their staffs.
They also furnish substantive

43




During 1990, the legal staffs in the
regional and consolidated offices
assumed responsibility for 207
new conservatorships. These staffs
also participated in the resolutions
of 515 financial institutions.
The four regional office legal
staffs also engaged in recruiting
both in-house and outside counsel.
This involved processing hun­
dreds of applications from law
firms seeking to be placed on
the RTC's approved counsel list
or "List of Counsel Utilized";
actively recruiting minorityand women-owned law firms for
inclusion on the approved counsel
list; and actively recruiting
minority and women lawyers
for the staffs of the regional and
consolidated field offices.

The staffs also developed regular
training courses for consolidated
field office staffs and for regional
conflict specialists in alternative
dispute resolution techniques.
In addition, the staffs created
transactional and litigation man­
uals for outside law firms and
in-house counsel.
Another 1990 accomplishment
was the development of standard
ized documents and procedures.
These included standard docu­
ments for use in real estate and
other transactions, and procedures
for identifying and resolving
conflicts among RTC/FDICcontrolled institutions.
O utside Counsel
RTC's approved counsel list
consisted of 955 law firms nation­
wide at yearend. One hundred of
these firms are minority-owned
and 21 are women-owned. The
branch will continue to recruit
minority- and women-owned
law firms for inclusion on the
approved counsel list as well
as recruit minority and women
attorneys for work inside the
branch.
One of the biggest challenges
facing the Legal Branch is ensur
ing the consistent treatm ent of
litigation issues throughout the
nation. The branch is develop
ing training materials to educate
recently retained firms about
the RTC's position on th ese
issues. *




oS

\ 0$^




The Office of Research and Statis­
tics (ORS) serves as the research
and planning arm of the RTC.
It supports the activities of the
other offices and divisions of the
RTC, providing economic, finan­
cial, and statistical analysis for
their operations. The office also
provides the Executive Director
and the divisions and offices
with economic analysis of policy
issues facing the RTC.
The Financial Modeling and
Statistics Section of ORS develops
financial models for a variety of
purposes, prepares data on RTC
activities and thrift institutions
for dissemination within the
RTC and to the public, and works
with management information
systems groups within the RTC
and in other agencies. The spe­
cific projects in which this section
has been engaged include the
projection of long-term RTC cash
flows and funding requirements,
preparation of public informa
tion packages for distribution to
potential bidders in thrift resolu­
tions, compilation of quarterly
data on the operations of conser­
vatorship institutions, and prepa­
ration of a number of recurring
reports and presentations on
RTC activities. Among the latter
are reports to the RTC Oversight
Board on RTC performance rela­
tive to operating plan goals,
reports to Congressional com­
mittee staff, chart presentations

on RTC operations and accom
plishments for Congressional
and other groups, and the /?TC
-Review, a monthly publication that
provides data and other informa­
tion on RTC activities.
The Financial Markets and
Institutions Section of ORS is
engaged in the analysis of public
policy issues, the economics of
asset management and disposi
tion, and the econometric analy­
sis of various issues confronting
the RTC. In the public policy
area, the section prepares and
coordinates testim ony to be
presented before Congressional
committees, provides liaison
with the Oversight Board on
the RTC strategic plan and imple­
m entation procedures, and
undertakes special public policy
projects as assigned. In 1990, the
latter included a detailed study
of open bank assistance from the
1930s to the present, preparation
of a briefing book on the RTC, and
analysis of various alternatives
for financing sales of RTC-held
real estate.
Other specific projects under­
taken by the Financial Markets
and Institutions Section include
the development of asset sale
concepts to facilitate large portfo­
lio sales, a model for estimating
thrift resolution losses, valuation
of asset put and call options in
resolution transactions, compi
lation of information on regional
real estate and other market

developments, analysis of receiv­
ership expenses, and analysis of
the impact of incentive provis­
ions in asset management and
disposition contracts.

structure and plans for achieving
its statutory goals under FIRREA—
closing hundreds of insolvent
S&Ls and selling the institutions'
billions of dollars in assets.

ORS has also provided analytical
support for the review and rene­
gotiation of 1988 FSLIC transac­
tions mandated by FIRREA and
for the development of a process
for periodic valuation or updat
ing the valuation of assets in RTC
receiverships.

OCC's Washington office re­
sponds to telephone and written
inquiries about the RTC from
the national and international
news media and industry trade
publications. It also evaluates
requests for speakers to appear
at privately sponsored functions
and for press interviews with
Executive Director Cooke and
other key RTC officials. In addi
tion, the office issues all major
RTC press releases. Other activi
ties include writing and editing
copy for various publications
and RTC operations; scheduling
press briefings; and producing
publications such as the RTC's
Airmm? Report

The Office of Corporate Com
munications (OCC) serves as
the voice of the RTC. OCC's job
is a critical and demanding one
because the RTC, charged with
resolving a financial crisis of
enormous proportion, is one
of the most visible and closely
observed federal agencies.
The office receives scores of
telephone calls daily from televi­
sion, radio, and print reporters at
news organizations around the
countiy and abroad with ques­
tions about the RTC, its policies
and operations, and S&L resolu­
tions. OCC must respond to
these inquiries promptly and
accurately. Its information pro­
grams are integral to the public's
awareness and understanding
of the Corporation. Although the
RTC has been in existence over
a year, OCC still receives m any
inquiries about the Corporation's




At the RTC's four regional offices,
OCC maintains a staff of public
information specialists who
serve as regional spokespersons
for the RTC. They also coordinate
media relations on-site when
savings institutions are placed
into RTC conservatorship or
receivership, and issue press
releases of regional interest.
During 1990, OCC issued over
700 press releases, m any of
which announced conservator­
ship or receivership transactions,
or case resolutions. Other topics
included RTC policies and

programs, affordable housing
efforts, upcoming sales events
and sales accomplishments, con­
tract awards, financial matters,
securitization efforts, and legal
issues. Initial press release distri­
bution is accomplished through
facsimile transmission (fax),
enabling OCC to notify immedi­
ately other regulatory agencies,
news wire services, and local
newspapers of S&L closings
and other important matters. In
addition, non-media customers
may access any press release
issued by the RTC through an
on-line fax system, a service
established by OCC through
an agreement with a private
vendor.
OCC conducted three major
press relations seminars during
the year, two at the National
Press Club in Washington, D.C.,
and one at an RTC open house
for regional reporters. OCC also
developed the prototype of the
RTC Revtew, a monthly publica­
tion that reports on the RTC's
operations.
Budget
The Office of Budget coordinates
and oversees the RTC's ongoing
budget process, which involves
budget formulation, budget
execution, program planning,
and performance planning
and measurement.
In 1989, while the RTC was still
in its formative stage, budget

estim ates w ere based on a
top-down analysis of operations
and resource requirem ents,
taking into account such issues
as planned organizational struc­
ture and support staff levels.
This type of analysis, coupled
w ith the fact that the basic
organizational structure of the
RTC was still subject to change,
resulted in the preparation
of adm inistrative budgets on
a quarterly rath er than an
annual basis.
In 1990, however, the RTC
had m ore operational in fo r­
m ation on which to draw to
prepare budget estim ates.
Q u arterly expen se budgets
continued to be produced
u ntil the fourth quarter of
1990. D uring th at qu arter,
an A d m in is tr a tiv e E x p e n s e
Budget for calendar year 1991
was developed. In addition, at
the end of the third quarter of
1990, the office began reporting
quarterly results of operations,
w hich assisted in m onitoring
the perform ance of m ajor RTC
functions nationally and report­
ing the fu nctions to sen io r
m anagem ent. Inform ation
su p p o rtin g th e q u a rte rly
b u d gets served as a catalyst
for the review and update of
RTC expense accounting. This
action provided greater assur­
ance that information reported
to senior management was an
accurate and tim ely reflection
of agency operations.

52




Several factors unique to the start­
up nature of the RTC impacted
significantly on the office's report­
ing of 1990 activities. These
factors included the rapid
growth in personnel staffing,
asset m anagem ent operations,
contracting, and procurem ent
of m anagem ent information
systems equipment and services.
During 1990, the RTC added 207
thrifts to the 281 already in the
conservatorship program from
1989, and resolved 515 institu­
tions. To support the conservator­
ship/resolution schedule, the
RTC's staff grew by 3,621 employ­
ees, an increase of 291 percent
from the previous year. Adminis
trative expenses for the RTC to­
taled $855.98 million in 1990. Of
this amount, "outside services"
and "salaries and ben efits"
accounted for 56 percent and
23 percent, respectively. About
96 percent of the expenses for
outside services were attributed
to Resolutions and Operations
activities and Asset and Real
Estate Management activities.
The value of assets managed in
RTC receiverships increased to
m ore than $58 billion at yearend from ju st under $8 billion
in 1989.
To enhance budget inform ation
available to managers and refine
the process of formulating and
executing the budget for the RTC,
the Office of Budget developed a
functional budget and a flexible
expense budget for 1990.

F u n ctio n a ! B udget
The RTC's 1990 functional bud­
get helped to highlight all of the
RTC's important activities. It is
organized to present information
by organization, location, pro­
gram, and function, such as asset
management, resolutions, con­
tracting, inform ation services,
and investigations. Information
reported included salaries and
benefits, outside services, travel,
building expenses, and equip­
m ent and supplies.
Ftexibte E xp en se B udget
W ithin the fram ew ork of its
functional budget, the RTC
operated under a flexible
expense budget during 1990.
The estim ates under this type
of budget allow the RTC to
avoid fixed ceilings on expendi­
tures that may slow the pace
of resolv in g in stitu tio n s and
disposing of assets. The ration­
ale for this type of budget was
the large and increasing am ount
of asset m anagem ent contract­
ing throughout 1990. The growth
in the contracting workload
was w ithin the RTC's goal of
contracting at least 80 percent
of its work to the private sector.
Although the asset m anagem ent
workload was difficult to predict,
relationships betw een the 1990
workload and expenses were
established to provide budget
estim ates that varied with
different workload levels. As
the RTC organization and its
operations mature, the flexible

expense budget will continue to
play an important role in measur­
ing work results.
P ro g ram
The Office of Program Analysis
provides functional oversight
and analysis of RTC activities
for the Corporation's Executive
Director. The office also re
sponds to complaints about the
RTC from the general public and
other interested parties. Activi­
ties of the office are administered
through the Program Analysis
office and the Om budsm an's
office.
As part of its responsibilities,
the Office of Program Analysis
advises senior management on
divisional goals and strategies
th at w ere developed to imple­
m ent FIRREA and the RTC
S tra te g ic Plan. Th e o ffice
reviews m ajor RTC programs to
ensure that statutory require­
ments are addressed and that
the programs, as designed, are
efficiently m eeting their objec
tives. These reviews assess how
the RTC programs and policies
are b ein g im plem en ted and
followed, and provide senior
RTC m a n a g e m e n t w ith a
m eans of fu rther evaluating
the effectiveness of established
divisional goals.
Special "ad hoc" reviews are
also performed upon request to
address the particular needs of
senior management. The office




also coordinates all audits and
reviews performed by the General
Accounting Office and the RTC's
Office of Inspector General. All
requests are analyzed to deter­
mine the appropriate action to
be taken.

assisting in the selection of
management information
system vendors, and initiating
the selection and installation of
a correspondence tracking system.

The Ombudsman's Office han
dies individual inquiries from
the general public and other
interested parties. Systemic prob­
lems identified through handling
of these inquiries are investi­
gated, and corrective actions pro­
posed. The office also provides
liaison with the RTC Office of
Legislative Affairs, ensuring that
Congressional inquiries receive
timely and accurate responses.

The Office of Legislative Affairs
(OLA) serves as the RTC's liaison
with the Congress, advising the
Board of Directors on legislative
issues, coordinating the drafting
of proposed legislation, preparing
testimony, responding to Congres­
sional inquiries, and represent­
ing the RTC's interests before
the Congress on legislative and
other matters.

During 1990, the Office of Program
Analysis handled over 2,300 inquir­
ies; evaluated the Office of Thrift
Supervision's proposal for the
scope of the conservatorship
examinations; developed directives
dealing with complaint handling
and management processes; par­
ticipated in the review of problems
associated with adjustable-rate
mortgages; developed a standard
solicitation of services in order to
solicit public accounting firms to
audit Standard Asset Management
and Disposition Agreement
contractors; and, before the estab
lish m en t of reg io n al O ffice
of Legislative Affairs positions,
handled all field-related Congres­
sional inquiries and responses.
Sp ecial p ro jects included
directing the Training Task Force,

OLA coordinates responses to
written and telephone inquiries
from Congressional offices with
other RTC offices and divisions.
During 1990, OLA responded to
2,500 written inquiries and over
5,000 telephone inquiries, most
from Congressional offices.
OLA also played a central role in
preparing testimony for Chairman
Seidman, Executive Director
Cooke, and other RTC staff before
Congressional committees on 24
separate occasions during 1990.
In addition, OLA met regularly
with members of the Congress
and th eir staffs to provide
relevant information about the
RTC's operations and to explain
the need for legislation integral
to the RTC's resolution and asset
disposition activities.

53

Secretary
1990 was a year of intense activ­
ity and rapid growth for the
RTC's Office of the Executive Sec­
retary (OES). When the RTC was
established in 1989, its Executive
Secretary function was organiza
tionally placed within the FDIC's
Office of the Executive Secretary.
Due to a continually increasing
volume of activity, in April 1990
the RTC's Office of the Executive
Secretary was established as a
separate entity. Consequently, in
1990 the RTC's OES was concern­
ed with two major tasks: fulfilling
its responsibilities to process
actions by the RTC Board of Direc­
tors and, at the same time, estab­
lishing itself as an administratively
separate unit. During this period,
OES assumed responsibility for
several new, important programs.
B oard of D irectors Services
OES' core responsibilities are
to provide public notice of meet­
ings of the RTC Board of Direc­
tors, record all votes, and prepare
minutes of the meetings.
In 1990, the RTC Board of Direc­
tors held 47 closed meetings,
primarily dealing with major
failed institutions, and 19 open
meetings. At the open meetings,
the Board approved six final and
two proposed regulations, and
18 policy statements.
The OES staff processed by notational vote, 140 Board decisions

54




relating to such issues as the
smaller, routine failed thrift
resolutions, and space and
procurem ent authorizations.
The notational process allows
the Board to vote on items not
requiring discussion without
having to take the tim e to hold
a meeting. During the year, 444
items were presented to the
Board for decision, of which
422 were approved.
R eco rd Services
One of OES' critical responsibil­
ities is ensuring that all documents
pertaining to and supporting
Board decisions are intact and
properly filed. Most of the 1990
Board actions dealing with the
resolution of thrift institutions
were executed by field staff. As a
result, OES' Record Services staff
established tracking systems to
ensure that all required documents
were received in a timely fashion.
Another important Record Ser­
vices function is to affix the RTC
corporate seal to appropriate
documents. The seal is most
frequently used in conjunction
with issuing powers of attorney
to RTC agents, enabling them to
act on behalf of the Corporation.
Because the RTC is in the business
of selling real assets, over 2,000
such appointments were made in
1990. Initially, all requests for
appointments were required to be
processed in Washington, causing
considerable delays for the field
staff. However, during 1990 the

Record Services staff im ple­
m ented the necessary controls
and arranged to have the
appointm ent authority and the
function of affixing the corpo­
rate seal delegated to the RTC
regional offices, saving the RTC
considerable tim e and expense.
C om m ittee S ervices
Following the FDIC model, the
RTC uses a standing committee
structure to enhance its decision­
making process by ensuring that
a sufficiently competent body
acts on matters requiring major
decisions. The RTC Board estab
lished three standing commit­
tees: (1) the Senior Committee
on Management and Disposition
of Assets, the highest delegated
authority for disposing of assets;
(2) the Committee on the Manage­
ment and Disposition of Assets,
the next highest authority; and
(3) the Contractors Conflicts
Committee, dealing with complex
ethics-related issues concerning
private contractors. (A join t
RTC/FDIC committee for issues
related to legal contractors has
also been established).
In 1990, the Committee Services
staff organized and produced
agendas and minutes for 127
com m ittee meetings, involving
the processing of 603 cases. In
addition, the staff responded to
an average of 40 weekly requests
for information about committee
actions and for certifications
on those actions. The staff also

im plem ented procedural
changes elim inating delays in
transm itting documents to the
RTC field offices that were
needed to verify final decisions
on cases, expediting the asset
sales.
F reed o m o f In fo rm atio n /
P rivacy Act
The OES is responsible for ensur
ing that the RTC complies with
the Freedom of Information/
Privacy Act (FOIA). In early 1990,
a high-level RTC FOIA Policy
Committee, chaired by the RTC's
Executive Director, was established to ensure that decisions on
records disclosure were appro­
priately and consistently made.
The RTC's overall policy is to
release to the public as much
information as possible with two
exceptions: (1) when there is a
legal prohibition to the release or
(2) when the release would signif­
icantly hinder the RTC's ability
to carry out its missions.
The RTC is charged with selling
assets and recovering as much
m oney as possible for taxpay­
ers, but at times the release of
inform ation could actually
reduce the taxpayers' return.
Consequently, m any decisions
must be made relating to the
release of inform ation involv­
ing a delicate balance between
the public's desire to gain infor­
m ation and the RTC's responsi­
bility to m aximize return to
the taxpayers.




In 1990, both the num ber and
complexity of FOIA requests
to the RTC steadily increased,
resulting in 1,174 requests
received for the year. To meet
the goal of processing 90 per­
cent of all FOIA requests within
50 calendar days, additional
FOIA professionals were hired
in W ashington and in each RTC
region. The staff increase resulted
in more expeditious processing
of requests. Inform ation profes­
sionals in the regions also will
facilitate the eventual decentral­
ization of the FOIA processing.
In addition to hiring additional
staff, the OES im plemented
procedures to expedite the
processing of FOIA requests.
For example, the staff arranged
the issuance of a summary sheet
containing non-proprietary infor­
m ation about w inning and
losing bids on failed thrifts. Win­
ning and losing bids have been
among the most frequently
requested information. Because
many bids contain some propri
etary information, the review
of bids prior to release takes sig­
nificant time. OES discovered
that the majority of requestors
of bid information only wanted
certain non proprietary informa­
tion. The summary sheet satisfies
over 90 percent of the requests
for bid information.
Public Reading Room
To implement the RTC's policy
of tim ely release of as much

inform ation as feasible, the
Executive Director decided in
March 1990 to establish a Public
Reading Room in Washington,
which opened the following
month. The Reading Room
provides hard copies of
RTC-related documents and
a com puter term inal through
which the public can access
for review the entire listing
of real estate assets for sale by
the RTC. The Reading Room is
set up to handle walk-in requests
as well as telephone and letter
requests. By yearend, the Read­
ing Room had responded to
over 10,000 requests for infor­
mation, distributed 517,545
pages of docum ents, and
collected $45,554 in duplica­
ting fees.
Once the Reading Room became
operational, plans were under­
way to establish similar func
tions in each of the four RTC
regions. Unlike the structure
used in Washington, plans
included com bining the FOIA
and Ombudsman functions
(which are organizationally
separate in Washington) and
the Reading Room function
into one unit in each region.
These "Public Service Centers"
would provide the public with
one place to access inform a­
tion and receive answers to
questions. The first Public
Service Center was established
in the Central Region in
October 1990.

R ecord s M anagem ent
In late spring 1990, responsibility
for the RTC's records manage­
ment program was transferred
from the FDIC to OES. This
responsibility includes establish
ing retention schedules for all
RTC records, using guidance
on various aspects of records
management, and developing
a standardized filing system.
Due to the urgency and size
of the task, an outside firm was
contracted to develop the records
retention schedules. That work
was 80 percent completed by
yearend. In addition, the OES
staff issued several directives and
other forms of guidance on such
issues as microfilming records,
security of files, investigative
records management, and other
similar subjects.

and technology for the RTC.
Established in September 1990,
OCI provides RTC users with
m odern, cost effective and
proficient inform ation systems;
facilitates the preparation of the
RTC's reports to the Congress,
the Oversight Board, and senior
m anagem ent; and seeks to
m inim ize the tim e required
to develop and acquire systems,
while m inim izing the cost of
new systems and systems
managem ent.
During 1990, OCI provided the
RTC with over 5,600 MS DOSbased m icrocom puters inter­
connected to over 120 local area
networks. OCI developed equip­
ment requirements and standards
for these microcomputers and
produced network and applica­
tion software standards. OCI also
provided training and documenta
tion to support these systems.

One of the m ajor undertakings
of the records management staff
was the establishment of an auto­
mated system to track all records
taken under the control of the
RTC when it is appointed con­
servator of an institution. When
the system is completed in late
spring 1991, it will enable the
RTC to track its records as they
are moved from one location
to another.

The RTC contracted for imple­
mentation of the Real EstateOwned Management System
(REOMS), a nationwide system
to provide more up-to-date geo­
graphic information on assets.
The system will also support
other RTC activities, including
marketing, accounting, and
reporting.

The Office of Corporate Informa­
tion (OCI) has the enormous task
of managing information systems

The first RTC Inform ation
Resources Management (IRM)
Strategic Plan was issued in
December 1990, defining goals
and objectives necessary to

56




fulfill corporate inform ation
requirements. The plan described
existing and future systems
architectures, and catalogued
the RTC's current and proposed
hardware, software and com
m unications resources.
OCI carries out its functions
through three branches: Software
Management Branch, Informa­
tion Resource M anagem ent
Branch, and Inform ation
Systems Branch.
S oftw are M an agem en t
B ra n ch
The Software M anagement
Branch provides RTC systems
users with information systems
development and maintenance
support. It also develops and
maintains a corporate data base,
and is creating a data dictionary.
The branch's four sections pro­
vide dedicated support to specific
areas of the RTC: assets, resolu­
tions, data administration, and
finance and administration.
!n fo rm a tio n R eso u rce
M an agem en t B ra n ch
The Information Resource Man­
agement Branch formulates
corporate wide policies on infor­
m ation management and the
acquisition, development and
use of the RTC's information
systems. It also develops the
RTC's IRM plans and budget,
and develops and enforces
standards and procedures to
be used in acquiring and using

information systems. In addition,
the branch administers the RTC's
IRM quality assurance program;
develops and manages a corpo­
rate-wide computer security pro­
gram; and provides acquisition
and administrative support to
OCI. Three sections carry out the
branch's functions: Policy and
Planning, Resource Management
and Quality Assurance, and
Security.
In fo rm atio n System s B ra n ch
The Information Systems Branch
plans, acquires, installs, and
manages computing support,
including office systems. It is also
responsible for computer perfor
mance management; computer
capacity planning; and the plan­
ning, acquisition, installation
and management of voice and
data communication networks.
The branch functions are carried
out by three sections: Office
Systems, Telecommunications,
and Computer, a








http://fraser.stlouisfed.org/
!
Federal
Reserve Bank of St. Louis




Affordable Housing
Disposition Program
August 21, 1990
The RTC adopted a regulation
to provide home ownership and
rental housing opportunities
for low- and moderate income
families and individuals. Among
other things, the regulation estab­
lishes a 90-day marketing period
during which qualifying purchas­
ers have exclusive rights to make
offers to purchase eligible prop­
erties and to submit expressions
of serious interest. The program
was authorized by FIRREA and
will be carried out in accordance
with the Fair Housing Act.
Employee Responsibilities
and Conduct
February 5, 1990
The RTC adopted a regulation
establishing standards of ethical
conduct for RTC employees. The
regulation is modeled after rules
applicable to FDIC employees
and incorporates requirements
mandated in FIRREA. The rule,
among other things, states that
no employee may accept a gift,
favor, entertainment, or loan
from anyone who is an officer,
director, or employee of any
insured depository institution
or business association whose
m em bers seek to do business
with the RTC. Other limits include
restrictions on certain types of
securities investments and out­
side employment related to
the real estate industry.

Q ualifications of, Ethical
Standards of, Conduct for,
and Restrictions on the Use
of Confidential Inform ation
by Independent Contractors
February 5, 1990
The RTC and the RTC Oversight
Board approved a regulation
establishing ethical standards for
contractors selected to perform
services for the RTC. This regula
tion includes prohibiting contrac
tors from performing services
for the RTC if they have caused
losses of $50,000 or more to the
federal deposit insurance fund
in certain circumstances. A con­
tractor currently in default on an
obligation to the FDIC, the RTC,
or an insured depository institu­
tion under the jurisdiction of the
RTC is also ineligible to contract
with the RTC.
Real Estate Appraisals
Proposed: February 22, 1990
Effective: Septem ber 21, 1990
The RTC Board of Directors
adopted a regulation governing
the performance and utilization
of appraisals in federally related
transactions under its jurisdic­
tion. The regulation is modeled
after appraisal regulations of the
OTS and FDIC. The rule states,
among other things, that State
certified appraisers are required
in all transactions with a value of
$1 million or more and for trans­
actions involving an interest in
one- to four-family residential
real estate if the transaction

value is $250,000 or more. No
appraisal is necessaiy when the
transaction value is less than or
equal to $50,000. An appraisal is
to include a separate assessment
of personal property, fixtures, or
intangible items that are attached
to or located on real property if
the personal property, fixture, or
intangible item affects the market
value of the real property.
Retention of Th rift Branches
Acquired by Banks
in Em ergency Acquisitions
Proposed: April 1, 1990
Effective: June 1, 1990
The RTC adopted a rule permit­
ting insured banks to retain and
operate branches of failed or
failing thrifts acquired pursuant
to the em ergency acquisition
provisions of section 13(k) of the
Federal Deposit Insurance Act.
The purpose of the rule is to
permit insured banks to retain
and operate such branches
despite provisions of state law
that would limit their ability to
do so. This action is being taken
because the RTC believes that
such state laws present a serious
impediment to the emergency
acquisitions of troubled thrifts by
banks, as authorized by section
15(k), and increase the cost of
resolution of these thrifts, creating
an obstacle to the purposes and
objectives of Congress.




P ro p o sed
Priority of D istribution
of Claims Against Resolution
Trust Corporation as Receiver
November 14, 1990
The RTC proposed to adopt a
regulation establishing the
priority of distribution for certain
claims by the RTC, in its corpo­
rate capacity, against the RTC
as receiver for failed savings asso­
ciations. The current regulations,
which were adopted to govern
receiverships conducted by the
former Federal Savings and Loan
Insurance Corporation, do not
take into account the current
methods by which the RTC
operates conservatorships or
receiverships. The proposed
regulation would recognize
that the RTC as a corporation is
entitled to the highest priority of
unsecured claims for advances
made to the RTC as conservator
or receiver, as those advances
benefit all creditors of the asso­
ciations in conservatorship or
receivership. The RTC finds that
since the advances are made for
the benefit of all creditors, and
actually increase the potential
recoveiy of all creditors by
enabling the receiver to perform
its duty to collect funds due to
the depository institution, it is
not unfair to other unsecured
creditors to accord this priority
to the RTC. a







te
a

R e s o lu tio n

T ru st

C o r p o r a t i o n

S tatem en t of F in an cial Position
D ecem b er 3 1 , 1 9 9 0 (dollars in thousands)
Assets
Cash

$

5,176,794

Net advances and loans (Note 3)

22,608,018

Net subrogated claims (Note 4)

25,558,697

Other assets (Note 6)

6,409

Total Assets

53,329,918

Liabilities
Accounts payable, accrued liabilities and other

41,822

Liabilities incurred from assistance and failures (Note 7)

490,897

Notes payable (Note 8)

53,929,779

Estimated cost of unresolved cases (Note 9)

55,941,445

Estimated losses from corporate litigation (Note 10)
Total Liabilities

158,184
110,562,127

Equity
Contributed capital

18,810,090

Capital certificates

24,247,854

Accumulated deficit
Total Equity (Note 11)

T otal Liabilities and Equity
See accompanying notes

64




(100,290,153)
(57,232,209)

$ 5 5 ,3 2 9 ,9 1 8




R e s o iu tio n

T ru st

C o r p o r a t i o n

S tatem en t o f R evenue, E xp en ses and A ccu m u iated Deficit
F o r th e y e a r ended D ecem b er 3 A, 1 9 9 0 (dollars in thousands)
R evenue
Interest on advances and loans

$

Servicing and other revenue

1,578,623
25,258

Total Revenue

1,403,881

E xp en ses an d Losses
Interest expense on notes issued by the Corporation

1,787,516

Interest expense on escrowed funds

1,395,438

Provision for losses (Note 5)

(1,485,133)

Administrative operating expenses

53,944

Other expenses

12,530

Total Expenses and Losses
Net Loss
A ccu m u iated D eficit Beginning
A ccu m u !ated D eficit Ending (Note 11)

1,766,295
(3 6 2 ,4 1 4 )
(9 9 ,9 2 7 ,7 3 9 )
$ (1 0 0 ,2 9 0 ,1 3 3 )

See accompanying notes

65

R e s o !u t i o n

T ru st

C o r p o r a t i o n

S tatem en t o f Cash Flows
F o r th e y e a r en d ed D ecem b er 3 1 , 1 9 9 0 (dollars in thousands)
Cash Flow s F ro m O perating A ctivities:
Cash inflows from:
Receipts from subrogated claim s

$ 1,879,579

Repayments of advances and loans, principal

7,198,660

Receipts of interest on advances and loans

1,160,595

Receipts from servicing and other operations

20,672

Cash outflows for:
Disbursements for subrogated claims

(60,870,583)

Disbursem ents for advances and loans

(19,037,050)

Disbursements for reim bursable expenditures
Administrative operating expenditures

Net Cash Used by O perating A ctivities (Note 15)

(241,137)
(32,480)

(6 9 ,9 2 1 ,9 4 4 )

Cash Flow s F ro m F in an cin g A ctivities:
Cash inflows from:
Corporate notes payable

52,142,263

Capital certificates

18,539,096

Contributed capital

Cash Provided by F in an cin g A ctivities

Net In cre a s e in Cash

Cash B eginning

Cash Ending
See accompanying notes

66




10,785

7 0 ,6 9 2 ,1 4 4

7 7 0 ,2 0 0

4 ,4 0 6 ,5 9 4

$ 5 ,1 7 6 ,7 9 4




D ecem b er 3 1 , 1 9 9 0
C reation o f th e RTC
The Financial Institutions Reform, Recovery, and Enforcem ent Act
of 1989 (FIRREA) becam e public law on August 9, 1989. This land­
m ark legislation established organizations and procedures to obtain
and adm inister the necessary funding to resolve failed thrifts and to
dispose of the assets of these institutions. FIRREA abolished the Fed­
eral 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 Corpora­
tion (FDIC), the Office of Thrift Supervision, the Federal Housing
Finance Board, and the Resolution Trust Corporation (RTC).
The RTC, a Government Corporation, was tasked with replacing the
FSLIC in future case resolution activity by managing and resolving
all troubled savings institutions 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 activities of the RTC are subject to the general oversight of the
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 m onitor the RTC's perfor­
mance. The Oversight Board consists of five members: the Secretary
of the Treasury; the Chairman of the Board of Governors of the Fed­
eral Reserve System; the Secretary of Housing and Urban Develop­
m ent; and two independent m em bers appointed by the President,
with the advice and consent of the Senate.
FIRREA established the Resolution Funding Corporation (REFCORP)
to provide the RTC with funds necessary to carry out its legislative
mandate. The REFCORP, under the direction of the Oversight Board,
was granted power to issue long-term debt securities. The net proceeds
of these securities shall be used to purchase capital certificates issued
by the RTC or to refund any previously issued obligation.
Under current law (FIRREA), the RTC will term inate on or before
December 31, 1996. All rem aining assets and liabilities will be trans­
ferred to the FSLIC Resolution Fund, with the requirem ent that
any net proceeds from the sale of such assets be transferred to the
Resolution Funding Corporation (REFCORP) for interest payments.
At the tim e of the RTC's term ination, the FDIC will succeed the
RTC as conservator or receiver for failed thrift activity.

67

S ou rce o f Funds
The RTC is funded from the following sources: 1) U.S. Treasury pay­
ments, borrowings and appropriations; 2) a contribution from the
Federal Home Loan Banks through REFCORP; 3) amounts borrowed
by REFCORP which is authorized to issue long term debt securities;
4) the issuance of debt obligations and guarantees as perm itted by
the Oversight Board; and 5) incom e earned on the assets of the RTC,
proceeds from the sale of assets, and collections made on claims
received by the RTC from receiverships, to the extent such amounts
are needed for further resolution costs (as determ ined by the Over­
sight Board).
The Secretary of the Treasury has contributed capital of $18.8 billion
to the RTC as of Decem ber 31, 1990. The RTC has also issued capital
certificates of $24.2 billion to REFCORP as of Decem ber 31, 1990 (see
Note 11). The RTC 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 of Decem ber 31, 1990, the RTC had no borrowings
outstanding from the Treasury.
The RTC's Office of Inspector General (OIG) received $10.8 m illion
of appropriated funds for fiscal year 1991 from the U.S. Treasury to
finance the activities of the Office of Inspector General.
In January 1991, the RTC issued capital certificates of $7.0 billion
to REFCORP. During March 1991, the Resolution Trust Corporation
Funding Act of 1991 authorized the Secretary of the Treasury to
provide an additional $30 billion in capital to the RTC.

2. S um m ary of Significant
A ccounting P olicies

G eneral
These statements do not include accountability for assets and liabili­
ties of closed thrifts for which the RTC acts as receiver/liquidating
agent or of thrifts in conservatorship for which the RTC acts as the
m anaging agent.
AHowance fo r Losses on A dvances and Loans
The RTC recognizes an estimated loss on advances and loans. The
allowance for loss represents the difference betw een amounts
advanced to conservatorships and expected repayments.
AHowance fo r Losses on Subrogated Claim s
The RTC records as assets the amounts advanced for assisting and

6#







closing thrifts. An allowance for loss is established against subro­
gated claims representing the difference between the amounts
advanced and the expected repayments. The allowance is based on
the estimated cash recoveries from the assets of the assisted or failed
thrift, net of estimated asset liquidation and overhead expenses,
including interest costs.
E stim ated Cost o f U nrcso!ved Cases
The RTC has recorded the estimated losses related to thrifts in
conservatorship and those identified in the regulatory process as
probable to fail.
Litigation Losses
The RTC recognizes an estimated loss for litigation against it in its
Corporate, conservatorship and receivership capacities. The RTC
Legal Division recom m ends these estimated losses on a case-by case
basis.
E scrow ed Funds
The RTC holds funds in escrow equal to the amount of assets pur­
chased by an assuming institution in a purchase and assumption
transaction until such tim e a receivership withdraws the funds to
buy back assets under put options or pay dividends, preferred
secured claims, receivership expenses, or settlem ent costs. The
RTC accrues interest on these funds on behalf of the receiverships.
AHocation o f Com m on E xpenses
The RTC shares certain adm inistrative operating expenses with
several funds of the Federal Deposit Insurance Corporation (FDIC)
including the Bank Insurance Fund, the FSLIC Resolution Fund,
and the Savings Association Insurance Fund. The administrative
operating expenses include allocated personnel, administrative,
and other overhead expenses.
OtG A p propriation
The RTC has reported OIG appropriations used to finance operating
expenses as part of "Servicing and other revenue" in the Statement
of Revenue, Expenses and Accumulated Deficit. Unobligated appro
priations are reported in the equity section of the balance sheet as
part of "Contributed capital."
D epreciation
The cost of furniture, fixtures, equipm ent and other fixed assets is

69

expensed at tim e of acquisition, and is reported as adm inistrative
operating expenses. This policy is a departure from generally
accepted accounting principles, however, the financial im pact is
not m aterial to the RTC's financial statements.
Cash Equivaients
The RTC considers cash equivalents to be short-term, highly liquid
investments with original m aturities of three m onths or less. As of
Decem ber 51, 1990, the RTC did not have any cash equivalents.
C om parative F in an ciai S tatem en ts
Comparative financial statements are not presented since the fig­
ures shown for 1989 cover only a small portion of the year. To show
comparative statements for periods of different lengths may be con­
fusing and/or misleading. The RTC's Decem ber 31, 1989 financial
statements were audited by GAO. (see GAO/AFMD 91-57, April 1991)
R elated P a rty T ran sactio n s
The nature of the relationships and descriptions of the related party
transactions are disclosed throughout the financial statem ents and
related footnotes.

3. Net Advances and Loans

The RTC makes both secured advances and loans to its conservator­
ships and receiverships. The Corporation accrues interest on these
advances and loans which is included in the Statem ent of Revenue,
Expenses and Accumulated Deficit. The Corporation expects repay­
m ent of these advances and loans, including interest, before any sub
rogated claims are paid by receiverships. Rates used for accruing
interest on advances and loans are based on an adjusted 13-week
Treasury Bill rate and ranged between 6.97% and 8.50% during 1990.
D ecem b er 3 1 , 1 9 9 0 (dollars in thousands)
Secured advances to conservatorships
Secured advances to receiverships
Loans to receiverships

11,983,236
1,693,208
190,806

Accrued interest

449,140

T o ta!

70

9,051,139

Reim bursem ents due from
receiverships and conservatorships

Allowance for losses (Note 5)




$

(759,511)
$ 2 2 ,6 0 8 ,0 1 8

Reim bursem ents due from receiverships and conservatorships for
operating expenses represent amounts paid by the RTC on behalf
of the receiverships and conservatorships for which repaym ent is
expected in full. Interest is not accrued on these reim bursem ents.

Subrogated claims from failures represent disbursements made
by the RTC for depositor liabilities. The Corporation recognizes an
estimated loss on these subrogated claims. The RTC accrues interest
payable to receiverships on the balances of their escrowed funds.
The rates used by the RTC to accrue interest are based upon the
Chicago FHLB Overnight Deposit Rates. Monthly averages of
interest rates during 1990 ranged between 7.54% and 8.59%.

4. Net Subrogated Ciaim s

D e ce m b e r 3 1 , 1 9 9 0 (dollars in thousands)
Subrogated claims

$ 102,284,412

Recovery on subrogated claims

(3,029,291)

Claims of depositors pending and unpaid

125,946

Escrowed funds

(32,033,010)

Allowance for losses (Note 5)

(41,809,360)

T o ta!

$ 2 5 ,5 3 8 ,6 9 7

5. Analysis o f Change in
AHowance fo r Losses
(dollars in thousands)
Provision
for
Losses

Balance
Decem ber 3 1 ,1 9 8 9
Allowance for losses,
subrogated claims

$

5,398,914

$

(2,550,298)

Redtassificathms
and
Adjustments
$ 38,960,744

Allowance for losses,
advances and loans
Estimated cost of
unresolved cases
Estimated losses from
corporate litigation
Total




94,669,000

992,700

83,719

74,465

$ 1 0 0 ,1 5 1 ,6 3 3

$ (1 ,4 8 3 ,1 3 3 )

B atance
December 3 1 ,1 9 9 0
$

41,809,360

759,511

759,511

(39,720,255)

55,941,445
158,184

$

O^

$ 9 8 ,6 6 8 ,3 0 0

7i

Reclassifications and adjustments represent amounts transferred
from the liability for the estimated cost of unresolved cases to
the allowance for losses on subrogated claims as a result of case
resolutions. Amounts are also transferred from the liability for
the estimated cost of unresolved cases to the allowance for losses
on advances and loans for institutions in conservatorship.

6. O ther Assets

The following are the components of other assets:
D ecem b er 3 1 , 1 9 9 0 (dollars in thousands)
Due from Government agencies

$ 3,504

Miscellaneous receivables

2,905

T o ta!

7. Liabiiities tn c u rre d fro m
A ssistance and F a iiu re s

$ 6 ,4 0 9

The following are the m ajor com ponents from liabilities incurred
from assistance and failures:
D ecem b er 3 1 , 1 9 9 0 (dollars in thousands)
Pending claims of depositors
Due to insured depositors
T o ta!

8 . Notes Payabie

72




$

125,946
364,951

$ 4 9 0 ,8 9 7

W orking capital was made available to the RTC during 1990
under an agreem ent betw een the RTC and the Federal Financing
Bank. The working capital is available to fund the resolution of
th rifts operating as conservatorships and for use in the RTC's
high cost funds replacem ent and em ergency liquidity program s.
D uring 1990, all o u tstand ing notes m atured at th e end of each
calen d ar quarter, at w hich tim e th e th en o u tstan d in g am ounts
were fully refinanced. The notes payable carry a floating rate of
interest based upon the 13-week Treasury Bill rate and ranged
betw een 7.19% and 8.32% during 1990. As of D ecem ber 31, 1990,

the RTC had $55.9 billion in borrowings and accrued interest
outstanding from the Federal Financing Bank. These borrowings,
approved by the Oversight Board, are within the lim itations
imposed under FIRREA.

9. E stim ated Cost
o f U nresoived Cases

The RTC has established at Decem ber 51, 1990, a liability of $55.9 billion for the anticipated costs of resolving 375 troubled institutions.
These institutions were either in conservatorship at that date or iden
tified by the Office of Thrift Supervision as Group IV (Watch List)
institutions. The Group IV thrifts probably will require government
assistance and are expected to be transferred to the RTC. The liabil­
ity includes an estimate of operating losses at institutions between
December 51, 1990 and the projected resolution date and thus is an
estimate of the funds required to cover losses in the 575 institutions
as of resolution. The liability recorded is the amount that is proba­
ble and reasonably estim able as of Decem ber 51, 1990.
The 1990 Estimated Cost of Unresolved Cases has declined consider­
ably from the Decem ber 31, 1989 estimate of $94.7 billion. The pri­
m ary reason for this decline is that 515 cases were resolved during
1990, leaving fewer unresolved cases at December 51, 1990.
In addition to those 575 thrifts for which a liability has been
accrued, there are almost 400 other open institutions characterized
by the Office of Thrift Supervision as troubled, but which "are not
expected to require government assistance" (Group III institutions).
Nonetheless, losses to the RTC from institutions in Group III are
possible. If a substantial num ber of these institutions were to fail,
the estimated cost to the RTC for case resolution might rise by as
m uch as an additional $60 billion.

10. E stim ated Losses fro m
C orporate Litigation




As of Decem ber 31, 1990, the RTC has been named in several thou
sand lawsuits while serving in its Corporate, conservatorship or
receivership capacities. Currently, it is not possible to predict the
outcome for all of the various actions. An allowance for loss total­
ling $158.2 m illion has been established as of December 51, 1990
for the 72 actions that m anagem ent feels are probable to result in a
significant loss. Additionally, the Corporation could possibly incur
further losses from the other pending lawsuits and other yet
unasserted claims.

73

1 1. Changes in Equity

Equity for the RTC as of Decem ber 51, 1990 is as follows:

(dollars in thousands)

Balance Dec. 3 1 , 1 9 8 9

C ontributed
Capital

Capital
C ertificates

A ccu m u lated
D eficit

$ 1 8 ,8 0 0 ,0 0 0

$ 5 ,7 0 8 ,7 5 7

$ (9 9 ,9 2 7 ,7 3 9 )

$ (7 5 ,4 1 8 ,9 8 2 )

(562,414)

(562,414)

Net Loss
OIG appropriation, unobligated

10,090

T otal
Equity

-

10,090

Issuance of capital certificates:
January 50, 1990

-

5,017,221

5,017,221

April 20, 1990

-

5,495,458

5,495,438

4,999,757

4,999,757

5,026,681

5,026,681

July 19, 1990
October 16, 1990
Balance Dec. 31, 1 9 9 0

$ 1 8 ,8 1 0 ,0 9 0

$ 2 4 ,2 4 7 ,8 5 4

$ (1 0 0 ,2 9 0 ,1 5 3 )

$ (5 7 ,2 3 2 ,2 0 9 )

12. OIG E xp en d itu res

Reductions to the RTC OIG appropriated fund for expenditures are
recorded as "Servicing and other revenue." Accordingly, during
1990 the RTC OIG appropriated fund was reduced by $694,442 and
recorded as "Servicing and other revenue." Further, disbursements
of the OIG appropriated fund for expenditures are recorded as
"Administrative operating expenses." As of Decem ber 51, 1990, the
unobligated OIG appropriation balance was $10.1 m illion.

13 Pension P lan and
A ccrued A nnual Leave

The FDIC eligible employees assigned to the RTC are covered by the
Civil Service Retirem ent System and the Federal Employees Retire­
m ent System. M atching employer contributions provided by the
RTC for all eligible employees were approximately $5,654,979 for
the year ending Decem ber 51, 1990.
Although the RTC contributes a portion of pension benefits for eligi­
ble employees and makes the necessary payroll withholdings from
them , the RTC does not account for the assets of either of these
retirem ent funds and does not have actuarial data with respect to
accumulated plan benefits or the unfunded liability relative to its

74




eligible employees. These amounts are reported by the U.S. Office
of Personnel Management (OPM) and are not allocated to the individ­
ual 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 approxi­
m ately $8,692,051 at December 31, 1990.

14. C om m itm ents
and G u aran tees




A ffordabte H ousing P ro g ram
As part of its Affordable Housing Program, RTC m anagem ent has
com m itted to expend up to $6 m illion to pay reasonable and custom
ary com m itm ent fees to various state and local housing authorities
who will, in turn, provide financing to low and moderate incom e
families. Under this program, the RTC works with state and local
housing finance agencies to secure com m itm ents of Mortgage Reve­
nue Bond funds which will be lent to qualifying families to enable
them to purchase properties from the RTC. At Decem ber 31, 1990,
$2.3 m illion remains unexpended. No substantial recoveries are
anticipated from the program.
R en tat Exp en se
The RTC is currently leasing office space at several locations to
accommodate its staff. These offices include: (1) the Washington,
D.C. Headquarter offices, (2) the four Regional offices, and (3) the
fourteen Consolidated offices located throughout the various
regions. The RTC's rental expense for 1990 totaled $16.6 million.
The RTC's total contractual obligations under lease agreements for
office space are approximately $156.0 m illion. The m inim um yearly
rental expense for all locations is as follows :
(dollars in thousands)
1991

1992

1993

1994

1995

1996/
T hereafter

$25,568

$23,817

$23,309

$ 20,375

$ 14,885

$48,296

All agreements contain escalation clauses which can result in adjust­
ments to rental fees for future years.

75




G u a ra n te e s o f RTC
Asset Sale Guarantees
The RTC is contingently liable with respect to guarantees, representa­
tions and warranties made for $9.9 billion in unpaid principal of loans
sold for cash, exchanged for mortgaged-backed securities or under
servicing right contracts which have been sold. However, a portion of
the sales proceeds have been escrowed to honor any obligations that
might arise from the guarantees, representations and warranties. No
additional losses are anticipated from these arrangements.
Letters of Credit
The RTC has adopted special policies for outstanding RTC conserva
torship and receivership collateralized letters of credit. These poli­
cies enable the RTC to m inim ize the im pact of its actions on capital
markets. In most cases, these letters of credit are used to guarantee
tax exempt bonds issued by state and local housing authorities or
other public agencies to finance housing projects for low and m oder­
ate incom e individuals or families. As of Decem ber 51, 1990, the
RTC has issued a com m itm ent to honor approximately $2.1 billion
of these letters of credit. The total am ount that will ultim ately be
paid and the losses resulting from these letters of credit are not
reasonably estim able at Decem ber 31, 1990.

15. Supp iem en tary
tn fo rm a tio n R eiating
to th e Statem en t
o f Cash H ow s




Reconciliation of net loss to net cash used by operating activities:
F o r th e y e a r ended D ecem b er 3 1 , 1 9 9 0 (dollars in thousands)
Net Loss:

Provision for losses

$

(562,414)

(1,483,133)

Interest expense financed
through increased notes payable

857,737

Interest expense accrued on notes payable

929,779

Accrued escrow interest expense

1,595,458

Accrued interest due from advances and loans

(218,228)

Receipts from subrogated claims

1,879,579

Repayments of advances and loans

7,198,660

Increase in accounts payable,
accrued liabilities and other

35,994

Disbursements for advances and loans

(19,057,050)

Disbursements for subrogated claims

(60,870,585)

Disbursem ents for reim bursable expenditures
Increase in other assets
Met cash used by o p eratin g activ ities

(241,157)
(4,586)
$ ( 6 9 ,9 2 1 ,9 4 4 )

Noncash transactions incurred from thrift assistance and failures
during 1990 (in thousands):
* $39,720,255 was reclassified to "Allowance for losses on subro­
gated claim s" from "Estim ated cost of unresolved cases" due to
the resolution of 515 cases during 1990.
* $122,759 was reclassified to "Net subrogated claims - Depositor
claims unpaid" from "Liabilities incurred from assistance and
failures" also due to 1990 case resolutions.
* $85 7,75 7 of interest expenses were financed through increases
in Notes payable.

77

GAO

U nited S ta te s
G e n e ra l A ccou n ting OfH ce
W ash ing ton , D C. 2 0 5 4 8
C om ptroU er G e n e ra l
o f th e U nited S ta te s

B -2 40 1 0 8

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, 1990, and the related statement of revenue,
expenses, and accumulated deficit and the statement of cash
flows for the year then ended.
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.
Due to internal control weaknesses and significant
uncertainties affecting the recovery values of troubled
real estate assets, we were not able to assess the
reasonableness of the Corporation's estimated recoveries
from receiverships or its estimated liability for
unresolved institutions.
Because these control weaknesses
and uncertainties could have a material effect on the
Corporation's financial statements, we are declining to
issue an opinion on whether its statements of financial
position and of revenue, expenses and accumulated deficit
are fairly presented.
VALUE OF RECOVERIES FROM
RECEIVERSHIP ASSETS UNCERTAIN
Our work indicates that the Corporation's estimated
recoveries from receivership assets could be overstated due
to the lack of strong internal controls over receivership
operations, flaws in the Corporation's methodology for
determining the recovery value of receivership assets, and
significant uncertainties related to the performance of the

73







economy in general and real estate markets in p ar ti cu la r.
For institutions already resolved, the Corporation paid out
the funds required to settle depositor claims either to the
depositors themselves or to the acquirers of the
institutions.
The Corporation then has a claim against the
receivership^ in the amount of depositor liabilities paid.
The Corporation's estimated recoveries from receiverships
are recorded as receivables on its balance sheet.
Based on our limited control testing performed in early
1 9 9 1 , we found that receiverships lacked strong controls
during 1 9 9 0 in many key areas related to cash receipts,
disbursements, and beginning balances.
As a result, we
cannot be reasonably sure that the amounts the
receiverships reported are accurate or that receiverships
have collected all that they should.
In response to our
initial findings, discussed in greater detail in our report
on the Corporation's internal control structure, the
Corporation instituted new control policies and procedures
in receiverships and consolidated offices.
We have
expanded our testing of receivership internal control
systems in our audit of the Corporation's 1 9 9 1 financial
statements.
We h a v e r e s e r v a t i o n s a b o u t t h e m e t h o d o l o g y t h e C o r p o r a t i o n
used t o e s t i m a t e th e r e c o v e r y v a l u e o f r e c e i v e r s h i p a s s e t s .
I n g e n e r a l , t h e C o r p o r a t i o n s a m p le d and v a l u e d a s s e t s f ro m
i t s 20 l a r g e s t r e c e i v e r s h i p s a n d t h e n p r o j e c t e d t h e r e s u l t s
o f t h e sam p le t o t h e a s s e t s o f i t s 352 r e c e i v e r s h i p s .
H ow ever, th e C o rp o r a tio n c a n n o t s t a t e w ith any c o n fid e n c e
t h a t v a l u a t i o n r e s u l t s fro m t h i s n o n s t a t i s t i c a l s a m p le o f
r e c e iv e r s h ip s a re r e p r e s e n t a t iv e o f th e a s s e ts o f
n o n s a m p le d r e c e i v e r s h i p s .
I n a d d i t i o n , t h e C o r p o r a t i o n was
u n a b le t o r e c o n c i l e t h e u n i v e r s e o f a s s e t s used t o s e l e c t
th e s a m p le f o r v a l u a t i o n i n i n d i v i d u a l r e c e i v e r s h i p s w i t h
th e u n iv e rs e o f a s s e ts re co rd ed in th e C o rp o r a tio n 's
g e n e ra l le d g e r a t th a t d a te .
We c a n n o t d e t e r m i n e w h e t h e r
t h e s e m e t h o d o l o g i c a l s h o r t c o m i n g s h a d a m a t e r i a l e f f e c t on
th e r e c o v e r y v a lu e s r e p o r te d by th e C o r p o r a t io n .
In
re s p o n s e to th e s e c o n c e rn s , th e C o rp o r a tio n changed i t s
m e th o d o lo g y f o r e s t im a t in g a s s e t r e c o v e r y v a lu e s in June
1991.
We w i l l e v a l u a t e i t s n e w p r o c e d u r e s i n o u r 1991
fin a n c ia l a u d it.

We are also concerned with the valuation of individual
receivership assets— particularly real estate related
assets.
At December 3 1 , 1 9 9 0 , Corporation receiverships
held assets with a book value of $ 5 8 billion, of which
$8 billion were real estate owned and another $8 billion
were delinquent real estate-backed loans.
Many delinquent
loans are likely to become receivership owned real estate
through foreclosure proceedings.
Although the Corporation
adjusts receivership assets from book to market value based
on appraisals or other standard valuation procedures,

^Corporation receiverships are separate legal entities
responsible for managing and selling the failed
institution's assets and paying off its creditors.
The
Corporation has merged about half of its receiverships
into 15 consolidated offices.

79

neither they nor we can be reasonably sure that these
values reflect recoveries under present economic
co n d i t i o n s .
The continuing weakness in the economy and the seriously
over-built real estate market will have a significant
effect on Corporation recovery values.,
The Resolution
Trust Corporation, the Federal Deposit Insurance
Corporation, and other government and private entities have
growing portfolios of troubled assets, including vast
amounts of real estate.
Given the market problems, the
income flows from many of these properties may never
support the valuations that were assigned to them when they
first entered the government inventory.
The Corporation
must compete with the growing number of distressed sellers
and institutions seeking to liquidate their holdings.
To
address market problems, the Corporation has adopted a
policy of aggressively discounting real estate assets up to
50 percent of appraised value, which could also have a
significant effect on recovery values.
Due to these
factors, many of which are beyond the Corporation's
control, the best estimates of recovery values could be
significantly overstated.
FUTURE RESOLUTION
COSTS UNCERTAIN
To estimate its liability for the cost of unresolved
institutions at December 31, 1990, the Corporation used an
appropriate methodology.
In general, the Corporation
assumed that 375 institutions in conservatorship or
considered likely conservatorship candidates would require
resolution during the period January 1, 1991, through
August 9, 1992.
In calculating its liability for these
resolutions, the Corporation assumed that the losses
related to these failures had been incurred as of
December 31, 1990, and that it would recover approximately
the same percentage of book value from the sale of assets
in these institutions as it expected to recover from
similar assets in already resolved institutions.
The
Corporation disclosed in the notes to its statements that
another 400 institutions could possibly fail.
The Corporation's estimate of the number of probable and
possible thrift failures was determined according to
generally accepted accounting principles.
However, as with
recoveries from already resolved institutions, the accuracy
of the Corporation's cost estimates depends on the outcome
of various uncertainties, principally the weak economy and
depressed real estate markets.
Real estate owned and
delinquent real estate-backed loans in Corporation
conservatorships totaled $9 billion and $8 billion,
respectively, at December 31, 1990.
The remainder of both
probable and possible resolution candidates at that date
held $395 billion in assets, nearly 30 percent of which,
based on historical percentages, were likely to be real
estate and delinquent real estate-backed loans subject to
foreclosure.
Due to the large exposure to real estate
losses, even the best current cost estimates for resolving
failed thrifts could be significantly understated.
Unexpected losses on asset sales could substantially

30







in c re a s e th e C o r p o r a t io n 's f u t u r e fu n d in g n ee d s .
d e p r e s s e d c o m m e r c ia l r e a l e s t a t e m a r k e t and t h e
C o r p o r a t i o n ' s a g g r e s s i v e d i s c o u n t i n g p o l i c y make
t h a t a d d i t i o n a l lo s s e s w i l l be i n c u r r e d .

The
it

lik e ly

CO RPO RATION P R E S E N T A T IO N OF
C E R T A I N A S S E T PURCHASE
TR A N S A C T IO N S I S Q U E S T IO N A B L E
The a p p r o p r ia te n e s s o f th e C o r p o r a t io n 's a c c o u n tin g f o r
t r a n s a c t i o n s r e l a t e d t o t h e p u r c h a s e o f a s s e t s and
a s s u m p tio n o f l i a b i l i t i e s a t r e s o l u t i o n i s q u e s t i o n a b l e .
In g e n e r a l , th e C o r p o r a tio n must pay th e a c q u ir e r o f a
f a i l e d i n s t i t u t i o n ' s d e p o s i t l i a b i l i t i e s an a m o u n t e q u a l
th e d e p o s its a c c e p te d .
The C o r p o r a t io n th e n has a c la im
a g a i n s t t h e r e c e i v e r s h i p o f t h e f a i l e d i n s t i t u t i o n i n an
amount e q u a l t o th e t o t a l d e p o s i t o r l i a b i l i t i e s p a i d .

to

In p r a c t i c e , h ow ever, th e a c q u ir in g i n s t i t u t i o n g e n e r a lly
a c c e p t s som e o f t h e f a i l e d i n s t i t u t i o n ' s a s s e t s i n s t e a d o f
cash f o r p a r t o f th e C o r p o r a t i o n 's p ay m e n t.
In th e s e
c a s e s , th e C o rp o ra tio n pays th e a c q u ir e r cash eq u a l to th e
n e t am ount o f l i a b i l i t i e s m in u s a s s e t s a c c e p t e d .
The
C o r p o r a t i o n c u r r e n t l y c o n s i d e r s an am ount e q u a l t o t h e
v a lu e o f th e a s s e ts t r a n s f e r r e d as "escro w ed fu n d s " h e ld
f o r r e c e i v e r s h i p s and a c c r u e s i n t e r e s t on t h e b a l a n c e s
o u ts ta n d in g .
We q u e s t i o n t h e C o r p o r a t i o n ' s c u r r e n t p o l i c y
o f o f f s e t t i n g th e escrow ed fu n d b a la n c e s a g a in s t a p o r t i o n
o f th e r e c e iv a b le s due fro m r e c e iv e r s h ip s f o r d e p o s it o r
l i a b i l i t i e s p a id .
T h is tr e a tm e n t re d u c e d th e C o r p o r a t io n 's
a s s e t s and l i a b i l i t i e s b y $3 2 b i l l i o n on i t s D ecem b er 3 1 ,
19 9 0, b a la n c e s h e e t.
We a r e w o r k i n g w i t h C o r p o r a t i o n
m a n a g e m e n t t o d e t e r m i n e h ow t h e a m o u n t s f o r a s s e t s
t r a n s f e r r e d a t r e s o l u t i o n s h o u l d be c l a s s i f i e d and
p re s e n te d in i t s f in a n c i a l s ta te m e n ts .
T h is a c c o u n tin g
is s u e does n o t a f f e c t th e C o r p o r a t io n 's r e p o r te d lo s s o r
i t s a c c u m u la te d d e f i c i t a t Decem ber 31 , 1 9 9 0.
G A P 'S

O P IN IO N

Because o f th e m a t e r ia l e f f e c t th e in t e r n a l c o n tr o l
w e a k n e s s e s and t h e u n c e r t a i n t i e s p r e v i o u s l y d is c u s s e d c o u ld
h a v e on t h e C o r p o r a t i o n ' s e s t i m a t e d r e c o v e r i e s fro m t h e
s a l e o f i t s r e c e i v e r s h i p a s s e t s and on i t s e s t i m a t e d
a m o u n t s t o b e p a i d f o r u n r e s o l v e d i n s t i t u t i o n s , we a r e
u n a b l e t o e x p r e s s , a n d we d o n o t e x p r e s s , a n o p i n i o n o n t h e
C o r p o r a t i o n 's f i n a n c i a l p o s i t i o n as o f Decem ber 3 1 , 1 9 9 0 ,
o r i t s r e s u lt s o f o p e ra tio n s fo r th e y e a r th en ended.
T h e r e f o r e , we c a u t i o n u s e r s t h a t t h e C o r p o r a t i o n ' s
a c c o m p a n y in g s t a t e m e n t o f f i n a n c i a l p o s i t i o n and t h e
r e l a t e d s t a t e m e n t o f r e v e n u e , e x p e n s e s and a c c u m u l a t e d
d e f i c i t have l i m i t e d r e l i a b i l i t y .
H ow ever, in o u r o p in io n ,
th e C o r p o r a t io n 's s ta te m e n t o f cash flo w s f o r th e y e a r
ended December 3 1 , 1 9 9 0 , p r e s e n ts f a i r l y , in a l l m a t e r i a l
r e s p e c t s , i t s cash flo w s f o r t h a t p e r io d in c on form ance
w ith g e n e r a lly a c c e p te d a c c o u n tin g p r i n c i p l e s .
I t s h o u ld
be r e c o g n iz e d t h a t t h e c a s h f l o w s t a t e m e n t r e p o r t s o n l y th e
c a s h a c t u a l l y r e c e i v e d and d is b u r s e d by th e C o r p o r a t i o n .
Du e t o w e a k n e s s e s i n c o n t r o l s p r e v i o u s l y m e n t i o n e d , t h e
C o r p o r a t i o n may n o t b e r e c o v e r i n g a l l t h e r e v e n u e i t s h o u l d
fro m i t s r e c e i v e r s h i p s .

81

O ur d i s c l a i m e r o f o p i n i o n on t h e C o r p o r a t i o n ' s s t a t e m e n t o f
f i n a n c i a l p o s i t i o n as o f D e c e m b e r 3 1 , 1 9 9 0 , and i t s
s t a t e m e n t o f r e v e n u e , e x p e n s e s , and a c c u m u la te d d e f i c i t f o r
t h e y e a r th e n ended can be rem oved w hen, in o u r ju d g m e n t ,
th e C o rp o r a tio n has c o r r e c t e d r e c e i v e r s h ip i n t e r n a l c o n t r o l
w e a k n e s s e s and h a s an a d e q u a t e h i s t o r i c a l b a s i s f o r i t s
lo s s e s t im a t e s f o r r e s o lv e d and u n r e s o lv e d i n s t i t u t i o n s .
The C o r p o r a t i o n can o n l y g e t t h i s e x p e r ie n c e b y s e l l i n g a
s i g n i f i c a n t and r e p r e s e n t a t i v e p o r t i o n o f i t s r e a l e s t a t e
and t r o u b l e d lo a n s s e c u r e d b y r e a l e s t a t e i n t h e c u r r e n t l y
d ep ressed m a rk e t.
CO RPO RATIO N

F U N D IN G NEEDS

T he F i n a n c i a l I n s t i t u t i o n s R e f o r m , R e c o v e r y , and
E n f o r c e m e n t A c t o f 1 9 8 9 ( F I R R E A ) , P u b l i c Law 1 0 1 - 7 3 ,
c r e a t e d t h e R e s o l u t i o n T r u s t C o r p o r a t i o n on A u g u s t 9 , 1 9 8 9 .
T h e C o r p o r a t i o n w as c h a r g e d w i t h r e s o l v i n g t h e p r o b l e m s o f
f a i l e d t h r i f t i n s t i t u t i o n s p r e v io u s ly in s u re d by th e
F e d e r a l S a v in g s and Loan I n s u r a n c e C o r p o r a t i o n ( F S L IC ) and
p la c e d in c o n s e r v a to r s h ip o r r e c e i v e r s h i p fro m J a n u a ry 1 ,
1989, u n t i l August 9 , 1992.
The C o r p o r a t io n 's O v e r s ig h t
B o ard , under th e c h a irm a n s h ip o f th e S e c r e ta r y o f th e
T r e a s u r y , has o v e r a l l r e s p o n s i b i l i t y f o r th e C o r p o r a t io n 's
a c tiv itie s .
The F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n
c a r r i e s o u t t h e R e s o l u t i o n T r u s t C o r p o r a t i o n ' s d u t i e s and
r e s p o n s i b i l i t i e s and i s r e i m b u r s e d f o r a l l s e r v i c e s
p e rfo rm e d .
The C o r p o r a t i o n 's 1990 f i n a n c i a l s ta t e m e n ts i n d i c a t e t h a t
i t c o u l d i n c u r up t o $ 1 5 8 b i l l i o n
in lo s s e s f o r r e q u ir e d
re s o lu tio n a c tio n s .
T h e C o r p o r a t i o n e s t i m a t e d t h a t i t had
a lr e a d y in c u r r e d lo s s e s o f $42 b i l l i o n f o r 352 i n s t i t u t i o n s
r e s o lv e d b etw een A ugust 9 , 1 9 8 9 , and December 3 1 , 1 9 9 0 .
In
c o n ju n c tio n w ith th ese r e s o l u t i o n s , th e C o rp o r a tio n
re c o rd e d a $54 b i l l i o n l i a b i l i t y
f o r F e d e r a l F in a n c in g Bank
(FF B ) b o r r o w in g s t h a t fu n d e d t h e p u r c h a s e o f a s s e t s h e ld
fo r s a le in C o rp o ra tio n r e c e iv e r s h ip s .
The C o rp o r a tio n
e x p e c te d th e p ro c e e d s fro m th e s a le o f r e c e i v e r s h i p a s s e ts
t o c o v e r t h e FFB w o r k i n g c a p i t a l b o r r o w i n g s .
If
r e c e i v e r s h ip a s s e ts b r in g in le s s th a n e x p e c te d , th e
C o r p o r a tio n w i l l have to r e q u e s t a d d i t i o n a l fu n d in g f o r
l o s s e s f r o m t h e C o n g r e s s t o r e p a y F FB b o r r o w i n g s .
The C o rp o r a tio n a ls o a c c ru e d a $56 b i l l i o n l i a b i l i t y f o r
th e c o s t o f r e s o l v i n g 375 i n s t i t u t i o n s w h ic h w ere in
c o n s e r v a to r s h ip o r w ere c o n s id e r e d p ro b a b le f u t u r e
c a n d id a te s f o r r e s o lu t io n .
in a d d itio n , th e C o rp o ra tio n
re c o g n iz e d th e p o s s i b i l i t y t h a t a n o th e r 400 open
i n s t i t u t i o n s may r e q u i r e g o v e r n m e n t a s s i s t a n c e a n d c o u l d
r e s u l t i n l o s s e s t o t h e C o r p o r a t i o n o f a s much as an
a d d i t i o n a l $60 b i l l i o n .
The C o r p o r a tio n
re s o lv e f a i l i n g

has b een p r o v id e d w it h $80
t h r i f t i n s t i t u t i o n s and t o

b illio n ^

pay

^F IR R E A p r o v i d e d t h e C o r p o r a t i o n w i t h $ 5 0 b i l l i o n t o
re s o lv e f a ile d t h r i f t i n s t i t u t i o n s .
An a d d i t i o n a l
$ 3 0 b i l l i o n w as p r o v i d e d b y t h e C o n g r e s s a s p a r t o f
R e s o lu t io n T r u s t C o r p o r a t io n F u n d in g A c t o f 1 9 9 1 .

32




to

its

th e




a d m in is tra tiv e expenses.
On S e p t e m b e r 1 2 , 1 9 9 1 , t h e
C o r p o r a t i o n and i t s O v e r s i g h t B o a rd t e s t i f i e d b e f o r e t h e
House S u b c o m m itte e on F i n a n c i a l I n s t i t u t i o n s S u p e r v i s i o n ,
R e g u l a t i o n and I n s u r a n c e , C o m m it t e e on B a n k i n g , F in a n c e and
U rban A f f a i r s .
They asked th e C o ng ress to p r o v id e a n o th e r
$80 b i l l i o n t o c o v e r a l l o f t h e e x p e c t e d and p o s s i b l e
lo s s e s a s s o c ia te d w ith th e t h r i f t in d u s tr y c le a n u p .
Of
t h i s am o u n t, $60 b i l l i o n r e l a t e s t o i n s t i t u t i o n s th e
C o rp o r a tio n d id n o t c o n s id e r p ro b a b le o r l i k e l y r e s o lu t io n
c a n d id a t e s a t December 3 1 , 1 9 9 0 .
We h a v e n o t i n d e p e n d e n t l y
d e t e r m i n e d h o w mu ch o f t h e $ 6 0 b i l l i o n i s n o w r e q u i r e d f o r
re s o lu tio n a c t iv it y .
T he C o r p o r a t i o n h as r e p o r t e d t o us
th a t i t is n e a rly out o f fu n d s .
The C o rp o r a tio n a ls o
r e q u e s t e d t h a t i t s w o r k in g c a p i t a l b o r r o w in g a u t h o r i t y be
in c re a s e d to $160 b i l l i o n .
In a d d itio n , th e O v e rs ig h t
Board re q u e s te d t h a t th e d e a d l i n e f o r t r a n s f e r r i n g t h r i f t s
t o t h e C o r p o r a t i o n f o r r e s o l u t i o n be e x te n d e d b y 1 y e a r .
These r e q u e s t s w ere in t e n d e d t o a l l o w th e C o r p o r a t io n to
c o m p le t e t h e c l e a n u p o f i n s o l v e n t i n s t i t u t i o n s and a l l o w
t h e S a v i n g s A s s o c i a t i o n I n s u r a n c e Fund ( S A I F ) 3 t o assum e
i t s r e s p o n s i b i l i t i e s w ith o u t a b a c k lo g o f tr o u b le d t h r i f t s
to r e s o lv e .
How m uch a d d i t i o n a l f u n d i n g t h e C o r p o r a t i o n w i l l r e q u i r e
d ep e n d s on a num ber o f f a c t o r s , p a r t i c u l a r l y t h e o utcom e o f
th e u n c e r t a i n t i e s r e l a t e d to th e econom y, th e r e c o v e r y
v a l u e o f a s s e t s , and t h e n u m b e r a n d t i m i n g o f a d d i t i o n a l
t h r if t fa ilu re s .
These u n c e r t a i n t i e s a ls o a f f e c t th e tim e
th e C o r p o r a tio n needs to c o m p le te i t s w o rk .
Faced w it h
th e s e u n c e r t a i n t i e s , n e i t h e r th e O v e r s ig h t B oard n o r th e
C o r p o r a tio n can p ro v id e a s s u ra n c e t h a t th e $80 b i l l i o n lo s s
fu n d r e q u e s t w i l l be t h e f i n a l i n s t a l l m e n t i n r e s o l v i n g t h e
t h r i f t in d u s try c r is is .

C h a r le s A. Bowsher
C o m p tro lle r G en eral
o f th e U n ite d S ta te s
S e p te m b e r

16,

1991

^ FIR R E A c r e a t e d S A IF t o r e p l a c e t h e F e d e r a l S a v i n g s and
Loan I n s u r a n c e C o r p o r a t i o n as t h e i n s u r a n c e fu n d f o r t h e
t h r i f t in d u s try .
H o w e v e r , S A IF h a s no s i g n i f i c a n t
r e s p o n s i b i l i t y f o r a s s i s t i n g and r e s o l v i n g t r o u b l e d
t h r i f t s u n t il August 9 , 1992.
A l t h o u g h F IR R E A p r o v i d e d
S A IF w i t h s e v e r a l f u n d i n g s o u r c e s , none w i l l s u p p ly
s i g n i f i c a n t revenue p r i o r to f i s c a l y e a r 1992.
See
F in a n c ia l A u d it:
S a v in g s A s s o c i a t io n In s u r a n c e F u n d 's
1989 F i n a n c i a l S t a te m e n t s (G A O /A F M D -9 1 -3 1 , M arch 1 , 1 9 9 1 )
f o r a d i s c u s s i o n o f S A I F ' s f i n a n c i a l c o n d i t i o n and f u n d i n g
m e c h a n is m s .

83







RTC C o n s e rv a to rs h ip s Ja n u a ry 1, 1 990 th rou g h D ecem b er 31, 1990
C O N S E R V A T O R S H IP
A SSO C IA T IO N S

R E S O U L T IO N S

A SSO C IA T IO N S

P L A C E D IN T O

JA N U A R Y 1, 1 9 9 0 T H R U

IN

C O N S E R V A T O R S H IP

D EC EM BER 31, 1990

C O N S E R V A T O R S H IP

JA N U A R Y 1, 1 9 9 0 T H R U

D EC EM BER 31, 1989

D EC EM BER 31, 1990

P& A

ID T

PA YO FF

2S1

207

166

96

47

A LA BA M A

4

2

4

A LASKA

2

ST A T E
TOTALS

A RIZO N A

,5

IN
C O N S E R V A T O R S H IP

1
3

A S S O C IA T IO N S

TOTAL
309*
4

!

3

D EC EM B ER 31, 1990
179
2

2

0

5

3

ARKANSAS

10

5

6

3

1

10

5

C A L IF O R N IA

19

17

10

10

8

28

8

CO LORA DO

13

4

5

5

3

13

4

2

2

1

1

11

14

C O N N E C T IC U T
F L O R ID A

4

1

2

2

12

13

G EO R G IA

4

2

4

5

1

IL L IN O IS

21

17

23

30

8

IN D IA N A

2

1

3

3

0

IO W A

2

4

4

4

2

14

3

KANSAS
KEN TU CK Y
LO U ISIA N A

26
3

15

2

1

0

20

19
3

1

1

13

1

15

1

2

3

1

1

2

2

2

0

4

0

8

8

3
4

M A SSA C H U SET T S
M IC H IG A N

8
4

1

1

M A IN E
M A RY LA N D

1

2

2

M IN N ESO T A

1

3

1

3

M ISSISSIPPI

6

10

3

3

M ISSOURI

6

4

5

4

9

1

N EBRA SK A

4

3

5

2

7

0

1

3

14

3

6

4

N E W JE R S E Y

5

12

2

N E W M E X IC O

6

4

2

N E W YO RK

1

N O R T H C A R O LIN A

1

4

4

4

4

2

2

3

2

0

3

4

8

3

2

0

1

1

4

1

1

1

0

5

2

67

52

2

1

O H IO

3

4

2

O K LA H O M A

8

3

4

2

2

4

N O R T H D A K O TA

O R EG O N
P EN N SY LV A N IA

1

P U E R T O R IC O

1

2

1
1
4

1

SO U T H C A R O LIN A

1

TEN N ESSEE

5

2

2

3

82

37

31

14

3

2

4

4

1

4

4

3

1

2

2

0

2

0

2

2

2

0

1

1

2

0

TEXA S
U TA H
V IRG IN IA

4

W A SH IN G T O N

1

W ISC O N SIN

2

W E S T V IRG IN IA
W Y O M IN G

86




1

3

1

22

1
1

New RTC C o n s e rv a to rs h ip s Ja n u a ry 1, 1990 throu gh D ecem b er 31, 1990
(D ollars in th o u sa n d s)
D ate of
T otal
N am e o f In stitu tio n & L o ca tio n

T otal

A ^ ets

5 7 ,5 7 0

6 4 ,4 2 2

5 5 ,4 5 3

5 ,8 8 2

2 5 4 ,5 9 1

2 5 5 ,5 4 0

1 8 3 ,9 3 4

2 3 ,1 6 7

0 4 -Ja n

B an n erb an c F S & L A , G arland, T X

0 4 -J a n

F irst G uaranty F S & L A , H attiesb u rg, MS

0 4 -Ja n

F irstce n tra l F e d e ra l Savings Bank, C h ariton , IA

1 1 6 ,9 4 0

1 1 3 ,5 4 5

1 0 4 ,7 1 7

1 4 ,7 5 2

0 4 -Ja n

M idw est F e d e ra l Savings Bank o f M inot, M inot, ND

9 9 0 ,1 6 8

1 ,0 5 4 ,1 9 4

5 7 7 ,6 3 8

8 1 ,1 8 7

1 1-Jan

A m erican F S B , Sanford, M E

1 1-Jan

A t!an tic F in an cia! Savings, F A , B ata C ynw yd, PA

5 2 ,8 5 5

5 1 ,0 5 5

3 9 ,7 8 8

8 ,9 8 6

5 ,3 7 5 ,6 6 6

5 ,6 5 9 ,0 9 0

3 , 7 3 5 ,7 4 8

4 0 1 ,5 0 5

1 1-Jan

C ertified FSA , G eo rg eto w n , T X

1 3 2 ,0 0 1

1 3 5 ,7 6 4

9 1 ,3 1 0

7 ,6 0 3

1 1 -Jan

D ep o sit T ru st F e d e ra l Savings Bank, M o n roe, LA

1 0 1 ,3 8 2

1 0 1 ,0 3 1

9 1 ,4 6 2

9 ,8 0 8

1 1-Jan

F am ily F e d e ra ) Savings A ssociation, D a))as, OR

1 6 8 ,3 8 7

1 6 9 ,1 2 4

1 0 0 ,6 4 5

1 4 ,2 7 2

1 1-Jan

Fin an cial F S & L A , F re sn o , CA

3 4 ,6 2 7

3 4 ,1 8 5

3 3 ,6 4 1

418

1 1-Jan

H orizon Savings Bank, F .S .B ., W ilm e tte , IL

1 ,2 4 7 ,3 2 0

1 ,2 3 5 ,5 4 7

1 ,0 8 8 ,5 9 1

1 3 6 ,8 3 5

1 1 -Jan

In v estm en t F S & L A , W ood lan d Hi))s, CA

2 5 0 ,7 0 0

2 5 6 ,3 0 3

2 4 1 ,3 0 4

1 2 ,7 9 0

1 1 -Jan

St Lou is C o u n ty Savings A sso ciatio n ,F .A ., F erg u so n

8 6 ,1 4 7

9 0 ,6 2 2

8 0 ,5 2 2

1 2 ,2 4 6
1 7 ,6 0 2

1 1 -Jan

St. C harles F S A , St. C h arles, IL

1 4 6 ,6 2 2

1 5 5 ,4 1 1

1 1 2 ,7 5 0

1 1 -Jan

W itsh ire F S & L A , L o s A ngeles, CA

7 9 ,1 4 3

7 8 ,5 9 2

7 7 ,2 6 6

1 ,6 9 5

18-Jan

B roo k h av en F S & L A , B roo khav en, MS

4 5 ,4 0 2

4 4 ,9 0 2

4 1 ,8 5 9

5 ,2 4 8

18-Jan

C olonial F e d e ra l Savings A ssociation, P rairie ViH

18-Jan

D uva] F SA , Jacksonville, F L

18-Jan
18-Jan
18-Jan

G em C ity FS & L A , Q uincy, IL

18-Jan

K arnes C o u n ty F S & L A , K arnes C ity , T X

5 5 ,7 3 6

6 3 ,6 4 8

5 6 ,5 7 1

7 ,0 7 7

1 8-Jan

M arshall F S & LA , M arshall, T X

6 5 ,3 1 4

6 5 ,0 9 1

5 7 ,5 5 0

5 ,3 0 3

1 3 7 ,3 8 6

1 5 1 ,0 6 5

1 0 2 ,2 4 9

1 2 ,1 2 0

1 ,0 2 9 ,9 5 5

1 ,0 2 7 ,8 6 5

8 5 7 ,0 3 8

7 8 ,2 2 9

F irst F e d . Sav. A ssoc, o f Y ork, Y ork, N E

6 1 ,1 7 4

6 2 ,1 0 6

5 3 ,7 1 0

9 ,9 8 6

F ro n tie r F e d e ra l Savings Bank, B elleville, IL

4 5 ,5 3 7

4 7 ,8 0 9

4 7 ,3 3 4

5 ,4 3 0

2 9 2 ,3 6 7

2 9 4 ,0 8 9

2 3 2 ,9 2 8

3 0 ,8 8 7

18-Jan

Standard F SA , H o uston, T X

2 4 -Ja n

E m p ire o f A m erica F S B , Buffalo, NY

2 6 -Ja n
2 6 -Ja n
2 6 -Ja n
2 6 -Ja n

1 5 ,0 8 7

1 5 ,1 6 3

1 5 ,0 2 7

3 ,5 9 4

8 ,4 6 3 ,3 8 2

9 ,1 2 2 ,9 6 2

8 ,0 2 3 ,9 7 5

9 1 3 ,6 4 6

C olonial S & L A , F .A ., C ap e G irard eau , MO

1 7 2 ,2 1 5

1 8 4 ,3 4 8

1 5 7 ,3 0 0

2 2 ,0 1 5

F irst Savings A ssociation, F .A ., B ism arck, ND

1 1 4 ,2 6 9

1 2 0 ,2 9 5

9 9 ,6 2 1

1 6 ,8 4 0

G rand P rairie F S & L A , S tu ttg art, AR

3 1 ,5 1 2

3 0 ,5 2 0

2 4 ,7 6 3

1 ,9 1 4

Palo D u ro F S & L A , A m arillo, T X

6 8 ,1 8 3

6 9 ,5 9 4

4 1 ,5 3 8

3 ,3 6 6

2 6 -Ja n

U valde F S & L A , U valde, T X

2 6 -Ja n

W illiam sburg F S & L A , Salt L ak e C ity, UT

3 1-Jan
0 2 -F e b

1 5 ,6 5 3

1 6 ,1 7 8

1 4 ,2 8 0

1 ,7 2 3

3 3 1 ,8 9 4

3 2 6 ,3 3 3

2 5 7 ,1 0 7

4 8 ,7 6 2

M erabank F e d e ra ! Savings Bank, P h o en ix, AZ

6 ,4 8 5 ,6 2 0

6 ,5 3 9 ,9 8 9

4 ,7 4 6 ,4 8 5

7 6 6 ,9 9 4

C en tru st F e d e ra l Savings Bank, M iam i, F L

8 , 2 7 5 ,5 3 4

8 ,0 3 8 ,3 5 0

5 ,9 2 2 ,4 7 5

3 2 5 ,9 1 5

5 7 7 ,2 9 2

5 8 5 ,7 4 7

5 6 0 ,0 5 7

6 0 ,2 1 7

5 2 ,8 3 0

5 2 ,4 0 1

4 9 ,8 0 2

6 ,2 6 0

1 ,9 8 5 ,4 4 3

1 ,9 4 0 ,4 9 5

1 ,4 1 9 ,8 1 0

1 5 4 ,7 8 2

0 2 -F e b

C lyd e F e d e ra l Savings A ssociation, N o rth R iverside

0 2 -F e b

H en d erson H o m e S & L A , F .A ., H en d erso n , KY

0 2 -F e b

P io n e e r F e d e ra t Savings Bank, C le a rw a te r, F L

0 2 -F e b

Sentinel F S & LA , Pho enix, AZ

0 9 -F e b

A bq F e d e ra l Savings Bank, A lbuquerqu e, NM

0 9 -F e b
0 9 -F e b
0 9 -F e b

H untington F S & L A , H untington B e a ch , CA

0 9 -F e b

L ib e rty Savings Bank, F S B , Randaitstow n, MD

1 8 2 ,7 4 2

1 7 6 ,6 5 6

1 7 0 ,2 3 4

8 ,7 0 6

2 ,0 9 2 ,1 7 9

2 ,1 1 2 ,4 3 1

1 ,4 6 9 ,7 0 5

1 0 4 ,7 2 7

A m erican F e d . Sav. A ssoc, o f Iow a, D es M oines, IA

9 2 7 ,3 0 4

9 0 7 ,0 8 2

8 1 1 ,7 6 7

9 5 ,4 5 4

F airm o n t F e d e ra l Savings A ssociation, F airm o n t, MN

4 6 ,3 2 9

4 8 ,2 4 8

4 6 ,2 4 7

7 ,1 2 3

1 2 1 ,8 8 1

1 2 1 ,0 2 8

1 2 0 ,2 1 1

6 ,8 0 7

5 0 ,9 6 7

5 0 ,6 3 5

4 1 ,6 4 9

5 ,8 1 7

0 9 -F e b

V erm on t SA, F A , T im onium , MD

3 3 7 ,9 8 3

3 5 2 ,5 5 9

2 5 1 ,8 7 4

4 1 ,3 9 7

1 6 -F e b

E q u itab le F S & L A , C olum bus, N E

7 4 ,7 8 6

7 5 ,6 1 0

6 3 ,1 1 6

1 3 ,1 1 0

1 6 -F e b

F id elity Savings Bank, F S B ., D anville, IL

1 6 ,4 5 6

1 6 ,9 3 4

1 6 ,3 0 7

1 ,8 7 7

1 6 -F e b

Franklin SA, O ttaw a, KS

9 ,3 6 1 ,0 7 4

8 ,8 7 0 ,7 3 1

4 ,6 5 6 ,9 4 5

1 5 0 ,9 3 8

1 6 -F e b

F re e d o m SA, F A , C olum bus, OH

3 6 ,8 5 5

1 6 -F e b

G reat A m erican S& LA , F A , Oak Park , IL

1 6 -F e b

3 6 3 ,7 1 1

3 7 8 ,2 7 0

3 1 1 ,8 6 0

1 ,0 2 9 ,9 2 7

9 9 9 ,2 2 0

7 3 2 ,1 4 7

7 8 ,8 2 6

H eritag e FS B o f O m aha, O m aha, N E

2 2 7 ,7 4 9

2 2 5 ,4 1 9

1 7 3 ,8 4 2

2 5 ,7 2 6

1 6 -F e b

State F SA , T ulsa, OK

5 3 6 ,2 1 1

5 2 1 ,8 9 3

3 5 7 ,8 3 7

3 2 ,1 5 4

1 6 -F e b

W e ste rn E m p ire FS & L A , Y o rb a Lind a, CA

4 1 1 ,7 6 5

4 0 6 ,4 2 5

3 1 7 ,7 9 6

7 ,1 5 8

2 1 -F e b

T h e B en j. F ranktin F S & LA , P o rttan d , OR

4 ,8 0 0 ,2 4 1

4 ,8 1 3 ,0 3 1

3 ,2 1 3 ,8 1 3

4 4 0 ,0 6 1

2 3 -F e b

C om m unity F e d e ra l Savings Bank, E ast M oline, IL

2 3 -F e b

F irst A tlantic FSA , Plainfield, NJ

1 1 2 ,7 9 1

1 1 5 ,7 1 8

1 1 3 ,4 5 8

2 2 ,1 3 6

1 ,3 1 2 ,2 6 0

1 ,2 7 9 ,8 5 0

1 ,0 0 2 ,2 8 9

1 2 0 ,0 4 4

2 3 -F e b
2 3 -F e b

F ir s t F e d e ra l Sav. A ssoc, o f B )u efie!d , B ]uefie!d,

4 0 ,7 2 7

3 8 ,6 5 8

3 2 ,9 8 3

6 ,0 2 1

F irst Stand ard F e d e ra l Savings A ssoc., F airm o n t, W

8 0 ,8 3 4

7 5 ,9 2 0

7 5 ,4 9 1

9 ,9 6 7

2 3 -F e b

F r o n tie r F SA , W alla W alla, W A

2 3 -F e b

G reen w oo d F S & L A . G reen w oo d , MS

1 5 0 ,4 3 4

1 4 5 ,7 6 1

1 1 9 ,1 1 1

1 6 ,0 3 7

2 6 ,6 8 3

2 8 ,7 1 6

2 5 ,4 7 6

4 ,0 8 7




87

N ew RTC C o n s e rv a to rs h ip s Ja n u a ry 1, 1990 th ro u g h D e ce m b er 31, 1990

(Dollars in thousands)
D ate of
N am e o f In stitu tio n & L o ca tio n

33

T otat

T ota)

1 0 ,0 2 8 ,0 5 1

9 ,6 0 4 ,6 7 5

6 ,6 2 4 ,9 0 0

3 7 2 ,4 1 4

2 ,2 0 6 ,8 2 4

2 ,1 5 8 ,8 9 5

1 ,7 9 2 ,1 2 4

1 7 4 ,7 8 3

^ s e t!

2 3 -F e b

Im p erial F e d e ra l Savings A ssociation, San D iego , C

2 3 -F e b

M ercu ry F S & LA , H untington B e a ch , CA

2 3 -F e b

N owtin F S A , N orth R ichtand Hitts, T X

2 2 4 ,1 1 0

2 1 9 ,0 5 8

1 9 5 ,5 3 7

1 6 ,8 7 9

2 3 -F e b

P ro vid en t SA, F A , C asp er, W Y

2 4 6 ,7 6 1

2 4 8 ,2 1 3

2 0 0 ,1 0 7

2 9 ,6 0 9

2 3 -F e b

T exasb an c F S B , C o n ro e, T X

3 2 5 ,8 0 9

3 9 6 ,2 0 8

3 8 5 ,4 8 8

3 3 ,8 1 8

2 3 -F e b

V an gu ard SB, F S B , V and ergrift, PA

1 8 2 ,5 9 7

1 7 6 ,1 6 9

1 4 9 ,0 1 8

3 0 ,6 5 1

0 2 -M a r

H aven S & L A , F .A ., W in te r H av en , F L

1 7 4 ,3 8 4

1 7 1 ,0 3 5

1 4 5 ,4 9 2

1 8 ,9 2 6

0 2 -M a r

N ew A thens F S & L A , N ew A thens, IL

3 1 ,3 0 2

3 1 ,3 6 8

2 7 ,6 4 3

6 ,1 5 5

0 2 -M a r

N o rth C aro lin a S & L A , F .A ., C h arto tte, N C

6 5 6 ,0 3 1

6 3 8 ,9 3 8

4 5 4 ,5 7 4

6 5 ,5 7 7

0 2 -M a r

Pim a F S & L A , T u cso n , AZ

2 ,7 9 3 ,4 1 0

2 ,7 0 7 ,2 6 0

2 ,1 2 8 ,1 1 7

1 6 4 ,6 5 4

0 2 -M a r

S ecu rity F e d e ra l Savings A ssociation, R ichm ond, VA

3 4 5 ,5 2 9

3 4 3 ,6 4 8

2 3 6 ,6 8 9

3 1 ,0 2 2

0 9 -M a r

In v esto r Savings Bank, F S B , NashviHe, TN

8 2 ,4 6 0

8 2 ,4 1 8

6 5 ,8 1 6

5 ,3 6 7

0 9 -M a r

Nassau F S & L A , P rin ceto n , NJ

3 2 4 ,1 8 9

3 2 2 ,0 1 3

2 7 4 ,9 4 7

3 6 ,2 7 7

0 9 -M a r

P eo p les F S A , B arttesvitte, OK

1 0 8 ,1 4 7

1 0 5 ,4 0 3

9 0 ,0 7 3

9 ,0 2 4

0 9 -M a r

T h e H iaw atha F e d e ra l Sav. A ssoc., H iaw atha, KS

5 5 ,8 9 1

5 5 ,2 6 7

5 4 ,0 6 8

4 ,0 3 9

0 9 -M a r

W e stp o rt F e d e ra ) Savings Bank, H anford, C A

1 7 5 ,1 5 1

1 7 4 ,4 7 2

1 7 1 ,4 8 7

7 ,4 8 2

0 9 -M a r

Y ork w oo d F S & L A , M aptew ood, NJ

2 0 9 ,6 8 6

2 1 5 ,9 6 5

1 9 0 ,8 7 3

2 7 ,1 7 9

1 6-M ar

F irst A m erica F S B , L o n gm o n t, C O

1 8 8 ,4 8 6

1 8 7 ,0 7 2

1 4 6 ,5 1 2

5 ,5 6 0

1 6-M ar

F irst FS & LA o f W ich ita F atts, W ic h ita FaHs, T X

8 7 ,5 3 2

8 8 ,7 1 5

8 7 ,7 4 2

1 0 ,6 9 6

1 6 2 ,6 5 3

1 5 8 ,7 3 3

1 3 3 ,1 6 1

4 ,5 1 3

8 3 ,5 3 0

8 5 ,6 5 3

8 0 ,2 4 2

1 3 ,7 8 9

16-M ar

G reat A m erican S & L A , F .A ., C o rin th , MS

1 6-M ar

Lak elan d Savings Bank, F .S .B ., D e tro it Lakes, MN

3 0 7 ,5 3 2

3 0 5 ,9 6 5

2 9 9 ,5 1 0

4 5 ,2 4 5

1 ,0 5 3 ,5 8 0

1 ,0 2 5 ,2 8 3

6 3 3 ,2 8 8

4 7 ,7 0 4

Sun F e d e ra l Savings A ssociation, F o r t D o d g e, IA

2 5 ,0 3 5

2 3 ,9 0 1

1 8 ,8 8 7

2 ,0 6 0

1 6-M ar

U n ited F e d e r a l Savings, F .A ., N ew O rleans, LA

5 4 ,7 4 8

5 3 ,9 0 2

4 3 ,3 5 8

8 ,9 4 2

1 6-M ar

W h itesto n e FS & L A , W h itesto n e, NY

4 0 5 ,5 4 7

4 3 1 ,8 7 4

3 5 2 ,2 7 6

4 8 ,0 1 5

0 5 -A p r

C o lo n y F S B , M o n aca, PA

4 3 4 ,0 2 3

4 4 9 ,0 8 6

3 2 7 ,2 4 7

5 7 ,5 4 1

1 2-A p r

C o nstitutio n F e d e ra t Savings A ssoc , T ustin, CA

6 6 ,7 4 3

6 6 ,5 4 1

6 4 ,7 2 7

5 ,2 2 2

12-A p r

F irst F e d e ra l Savings A ssociation, W a rn e r Robins,

1 6 0 ,8 7 3

1 5 4 ,7 9 6

1 4 3 ,6 0 0

2 1 ,4 8 6

2 0 -A p r

E n te rp rise F e d e ra t, F .S .A ., C te a rw a te r, F L

6 3 ,8 0 4

6 3 ,7 9 7

4 4 ,6 9 7

3 ,0 2 8

2 0 -A p r

F irst N etw o rk F e d e ra t Savings B ank, L o s A ngetes, C

4 1 3 ,5 3 6

3 9 9 ,6 4 5

3 9 3 ,5 4 1

1 3 ,2 6 9

2 0 -A p r

F irst S& L C o m p an y , F A , Massitton, OH

1 7 3 ,7 9 2

1 7 1 ,6 4 2

1 5 7 ,3 8 1

2 8 ,9 7 9

2 0 -A p r

H e rita g e F SA , L am ar, C O

4 8 ,7 6 1

4 7 ,9 2 5

4 4 ,0 6 1

870

2 0 -A p r

S o u th eastern F e d e ra ] Savings Bank, L au re], MS

5 0 ,5 5 3

5 0 ,1 3 7

3 8 ,4 1 4

1 ,7 8 8

1 6-M ar

Nassau S & L A , B rooktyn, NY

1 6-M ar

P acific C o ast F S A o f A m erica, San F ra n cis co , CA

1 6-M ar

2 0 -A p r

T exas F S A , San A ntonio, T X

5 7 ,9 1 0

6 2 ,1 2 0

6 0 ,2 6 1

1 ,6 6 0

2 7 -A p r

H o m e O w ners Savings Bank F .S .B ., B oston, MA

3 ,5 1 5 ,9 6 0

3 , 4 7 4 ,4 9 4

2 ,7 0 6 ,0 7 4

1 8 5 ,5 7 9

2 7 -A p r

Santa B arb ara F S & L A , Santa B arb ara, CA

4 ,2 4 2 ,4 1 0

4 ,2 6 6 ,5 1 1

1 ,7 4 4 ,5 6 6

1 6 0 ,3 2 8

0 4-M ay

C apitot F S & L A , A u ro ra, CO

1 ,0 2 5 ,0 2 4

1 ,0 5 3 ,9 2 0

7 6 0 ,3 3 0

9 6 ,7 5 4

04-M ay

F irst F e d e ra t Savings Bank and T ru st, Kansas C ity,

2 8 ,6 7 0

2 7 ,2 8 8

2 0 ,9 8 1

2 ,1 1 9

0 4 -M a y

M utual A ide S & LA , M anasquan, NJ

1 0 7 ,3 6 3

1 0 6 ,5 6 4

1 0 4 ,6 5 9

1 6 ,7 7 2
2 ,4 7 3

0 4-M ay

P enin suta S & LA , South San F ra n cis co , CA

5 1 ,9 7 3

5 1 ,7 4 4

4 6 ,1 4 2

0 4-M ay

S ecu rity F e d e ra l Savings Bank, C artsbad, NM

2 7 ,9 2 6

3 5 ,2 7 1

3 4 ,0 6 3

3 ,1 9 3

0 8-M ay

M ississippi Savings Bank, F .S .B ., B atesvitte, MS

1 8 0 ,9 6 5

1 7 0 ,7 8 6

1 4 8 ,5 5 4

3 ,3 5 6

1 1-M ay

F ir s t F S A o f B reau x B rid g e, B reau x B rid g e, LA

2 0 .4 4 2

2 0 ,9 8 8

2 0 ,9 0 0

2 ,0 1 6

1 1 -M ay

G reat W e st, a F S B , C raig , C O

3 3 ,6 9 7

3 2 ,5 3 9

3 0 ,6 5 4

8 ,0 2 3

1 1 -M ay

T h e F e d e ra t Savings B an c, F A , A rtington, T X

1 3 9 .2 1 5

1 3 5 ,2 9 6

1 2 3 ,0 8 5

2 1 ,3 6 8

1 1 -M ay

U n ited Savings Bank, F .S .B ., W indom , MN

1 7 2 .5 7 1

1 7 3 ,0 1 9

1 3 2 ,7 5 4

1 0 ,6 5 5

15-M ay

U nited Savings, F S B , P atterso n , NJ

2 5 1 ,1 7 4

2 4 5 ,0 1 6

2 4 4 ,2 4 5

3 8 ,0 0 1

1 8-M ay

F irst F S A , B o rg e r, T X

18-M ay

F irst FSA o f C o n ro e, C o n ro e , T X

1 8-M ay
18-M ay
1 8-M ay

6 6 ,4 3 9

6 8 ,7 0 4

5 2 ,8 8 2

7 ,2 4 9

1 7 8 ,8 9 5

1 7 7 ,5 5 2

1 4 5 ,1 3 5

1 4 ,4 0 5

Jennings F S A , Jenning s, LA

5 7 ,2 2 8

5 6 ,2 4 2

5 5 ,7 4 4

8 ,3 8 9

Jo n esb o ro F S A , Jo n esb o ro , LA

5 6 ,4 1 5

5 5 ,2 0 4

5 4 ,0 5 7

6 ,7 9 6

So uthw est F S A , D atlas, T X

5 ,4 8 5 ,3 5 3

5 , 5 8 9 ,9 0 8

3 , 7 3 3 ,9 9 3

2 3 0 ,1 5 7

2 5-M ay

A m erican P io n e e r F S B , O rtando, F L

1 ,6 3 1 ,5 4 7

1 , 6 7 3 ,6 4 0

1 , 3 6 1 ,4 5 6

1 1 1 ,0 8 5

2 5-M ay

B ank U sa Savings A ssociation, Silvis, IL

2 4 ,3 1 1

2 2 ,2 3 6

2 0 ,8 2 7

2 ,6 7 2

2 5-M ay

C ag u as-C en trat F e d Sav Bank o f PR , C aguas, PR

1 ,6 6 7 ,3 2 5

1 ,5 9 4 ,6 5 8

1 , 2 5 4 ,9 3 3

1 4 0 ,7 8 8

25-M ay

F irst A m erica Savings Bank, F S B ,

2 5-M ay

F irst F e d e ra ) Savings, F .S .A , N ew B raunfets, T X




F o r t Sm ith, AR

4 6 8 ,1 4 1

4 6 2 ,2 5 1

4 3 8 ,1 4 2

7 9 ,5 7 4

2 3 7 ,8 6 1

2 3 2 ,6 5 2

2 0 7 ,1 4 2

2 4 ,7 9 4

New RTC C o n s e rv a to rs h ip s Ja n u a ry 1, 1990 th ro u g h D ecem b er 31, 1990
(D ollars in th o u sa n d s)
D a te o f
T otat
N am e o f In stitu tio n & L o catio n

T ota)

A ^ e t!

25-M av

Rem in gto n F e d e ra l Savings A ssociation, Elgin, T X

1 3 0 ,2 6 9

1 3 9 ,9 9 0

1 1 3 ,7 0 4

9 ,1 4 5

0 1 -Ju n

F irst FS B of A nnapotis, Annapotis, MD

7 3 8 ,3 6 5

7 2 8 ,8 3 3

6 1 3 ,8 5 2

6 0 ,2 8 9
3 ,0 2 0

0 1 -Ju n

G reat Life F .S .A ., Sunrise, F L

4 3 ,5 6 1

4 3 ,9 8 0

3 6 ,1 3 1

0 1 -Ju n

In v esto rs F e d e ra l Savings Bank, D eerfield B each , F

2 8 4 ,9 2 5

2 8 3 ,6 4 1

2 3 8 ,8 8 1

6 ,0 4 5

0 1 -Ju n

M utuat S& LA , F A , W e a th e rfo rd , T X

1 1 0 ,8 6 6

1 0 6 ,6 2 2

9 1 ,9 7 1

1 1 ,8 6 6

0 1 -Ju n

T im e F S & LA , San F ra n cis co , CA

5 8 ,2 7 5

5 7 ,9 2 8

5 3 ,9 4 2

5 ,5 0 4

0 8 -Ju n

F irst B ankers T ru st & SA, F .A ., M idland, T X

1 0 6 ,4 1 7

1 0 4 ,5 3 5

9 2 ,8 6 2

1 0 ,6 6 1

2 6 5 ,4 8 9

2 4 7 ,4 7 6

2 4 2 ,4 1 6

4 0 ,1 1 0

6 4 ,8 6 6

6 3 ,6 5 9

5 8 ,3 9 9

8 ,6 7 1

0 8 -Ju n

H o m e F .S .B . o f W o r c e s te r , W o rc e s te r, MA

0 8 -Ju n

H om eto w n Savings Bank, F S B , D etphi, IN

1 5-Ju n

C h a rte r Savings Bank, F S B , N ew p ort B each , CA

3 1 5 ,7 5 7

3 0 2 ,8 7 9

2 8 1 ,9 4 6

2 3 ,9 4 5

15-Ju n

F irst SB o f N ew O rteans, F S B , M etairie, LA

1 7 4 ,9 1 3

1 7 1 ,4 8 6

1 3 3 ,4 8 4

9 ,6 9 6

1 5-Ju n

M outtrie Savings Bank, F S B , M outtrie, GA

6 6 ,9 4 9

6 7 ,3 4 1

5 2 ,5 7 5

7 ,7 0 5

15-Ju n

U nited S& L o f T ren to n , F .A ., T ren to n , NJ

2 8 9 ,0 1 1

2 8 8 ,5 3 0

2 7 3 ,5 1 3

5 0 ,7 2 5

2 2 -Ju n

G erm aniabank, a F S B , A tton, IL

8 2 0 ,3 7 7

7 9 6 ,3 2 6

6 5 8 ,6 3 1

7 8 ,0 0 8

2 2 -Ju n

So uthern F S B , G utfport, MS

1 4 3 ,8 1 9

1 4 0 ,9 0 7

9 3 ,6 3 6

1 6 ,3 6 1

2 9 -Ju n

C h a rte r F e d . Sav. A ssoc., Stam ford, C T

1 0 6 ,2 7 1

1 0 3 ,5 3 6

8 3 ,2 2 1

5 ,5 2 6

2 9 -Ju n

F irst Jackson F S B , Jack son , MS

1 1 8 ,0 9 7

1 1 3 ,6 4 1

9 1 ,1 9 0

1 0 ,6 7 3

2 9 -Ju n

P io n eer F S & L A , M arietta, O H

1 0 ,8 6 3

9 ,3 3 6

9 ,1 1 3

1 ,4 1 3

2 9 -Ju n

T ravis F S & LA , San A ntonio, T X

3 3 3 ,5 5 1

3 2 0 ,0 1 4

2 7 1 ,2 5 0

1 9 ,5 1 8

2 9 -Ju n

W in d sor FSA , Austin, T X

1 1 8 ,7 4 6

1 1 8 ,6 3 8

1 0 2 ,5 4 5

5 ,7 9 7

0 5 -Ju t

H o m e SB, F S B , Satt L ak e C ity, UT

1 3 ,3 4 3

1 2 ,8 6 9

9 ,7 5 5

963

0 6 -Ju t

H e rita g e F SA , L a n c a ste r, PA

5 0 ,1 1 0

5 0 ,8 5 9

5 0 ,4 3 5

8 ,3 6 7

13-Ju t

C apitot-U nion FSA , B aton R o u g e, LA

4 1 0 ,3 2 1

4 0 7 ,7 4 9

3 2 1 ,7 4 4

3 9 ,0 8 7

13-Ju t

N orth T exas FSA , W ich ita F atts, T X

9 8 ,5 2 0

1 0 1 ,4 2 7

9 4 ,6 9 2

1 0 ,4 8 5

13-Ju t

P ro gressiv e SB, F S B , N atch ito ch es, LA

5 3 ,6 7 6

5 4 ,4 1 4

4 6 ,4 8 9

5 ,3 2 7

13-Ju t

Sum m it F irst S & LA , F A , Sum m it, IL

5 9 ,0 0 7

5 9 ,4 2 2

5 4 ,5 8 7

6 ,6 7 4

20 -Ju t

C h a rte r SB, F S B , H attiesb u rg, MS

1 3 5 ,5 3 6

1 3 6 ,0 1 5

6 8 ,8 1 3

5 ,9 4 2

20 -Ju t

C om m on w eatth FSA , N ew O rteans, LA

5 0 ,9 3 3

4 7 ,5 6 1

4 4 ,1 2 5

3 ,8 8 0

20 -Ju t

M ainstay F e d e ra t Savings, F S B , R ed Bank, NJ

2 3 4 ,7 2 2

2 1 9 ,6 9 3

1 6 5 ,1 3 6

1 2 ,7 7 8

1 2 0 ,2 5 8

1 2 2 ,5 7 8

9 7 ,6 7 8

1 2 ,0 1 9

5 4 ,8 6 2

5 6 ,4 6 7

4 9 ,5 4 7

5 ,4 1 5

7 0 4 ,9 0 3

7 2 6 ,4 7 7

6 1 5 ,4 1 7

5 3 ,9 1 7

27 -Ju t

C itizen s & B uitders F S, F S B , P en saco la, F L

27 -Ju t

G uaranty Savings Bank, F S B , F a y e tte v ilte , N C

2 7 -Ju t

Professionat F S B , C o rat G abtes, F L

2 7 -Ju t

S tatesm an F e d e ra t Savings Bank, W a te rto o , IA

5 7 2 ,2 4 1

5 2 6 ,8 8 2

4 4 2 ,9 7 9

6 9 ,4 0 4

3 1 -Jut

U nited F S B , V ienna, VA

4 2 8 ,5 7 4

4 1 4 ,9 4 7

3 5 2 ,8 7 2

4 6 ,0 8 1

0 3 -A u g

A m igo F S & L A , B row nsvitte, T X

2 1 ,0 0 6

2 0 ,9 5 5

2 0 ,4 3 9

3 ,8 0 9

0 3 -A u g

H o m eto w n F S A , W infietd, IL

4 7 ,1 0 5

4 6 ,0 3 2

3 9 ,3 6 2

4 ,2 8 4

0 3 -A u g

T en n essee F S B , C ook evitte, TN

4 0 ,5 7 6

4 0 ,2 3 8

3 6 ,0 2 3

4 ,6 7 6

10-A u g

A m erican SA o f Mt C arm el, F A , Mt C arm et, IL

1 1 ,9 4 6

1 1 ,8 5 3

1 1 ,7 6 3

1 ,9 7 8

1 0-A u g

S u p erio r SB, F S B , N aco g d o ch es, T X

8 2 ,6 8 6

7 7 ,9 1 7

7 6 ,9 0 1

9 ,0 9 5

17-A u g

Fin an cial Savings of H artfo rd , F S B , H artfo rd , C T

2 2 ,3 0 8

2 1 ,7 6 8

1 7 ,5 0 2

815

17-A u g

F irst FSA o f T u scota, T uscota, IL

2 3 ,8 5 9

2 3 ,6 5 3

2 3 ,4 1 4

3 ,1 7 8

2 4-A u g

A m bassador FS & L A , T am arac, F L

1 8 6 ,5 4 5

1 9 0 ,6 1 6

1 6 1 ,2 0 4

2 1 ,6 8 9

2 4-A u g

B roken A rrow Savings A sso c.,F A , B rok en A rrow , OK

2 7 ,5 5 5

2 7 ,3 0 1

2 3 ,0 3 0

2 ,3 6 0

2 4-A u g

F irst F S & L A , T em p te, T X

3 4 2 ,7 1 0

3 2 8 ,6 1 4

3 2 4 ,3 2 0

2 5 ,7 6 0

3 1 -A u g

A ttanta F S A , A ttanta, T X

3 1 -A ug

Ensign F S B , N ew Y ork, NY

31-A u g

F irst A m erican F S B , Santa F e , NM

31-A u g

F irst F SA , W innfietd, LA

0 7 -S e p

E t Paso FSA , E t Paso, T X

0 7 -S e p

F irst C ity F S B , L u c e d a te , MS

14-S ep

F irst SB o f H em p stead , F S B , H em p stead , T X

2 1 -Sep

H idatgo S& LA , E d in b u rg, T X

2 1 -Sep

M e rce r F S B , T ren to n , NJ

2 1 -Sep

S entry SB, F S B , H yannis, MA

2 1 -S e p

T exas C o m m erciat SA, Sulphur Springs, T X

2 1 -S e p

Y orkvitte F S & L A , B ron x, NY

1 2 -O ct

In tern atio n al F S & L A , N o rth Miam i B each , F L

1 9 -O ct

Gotd C oast F S B , P tan tatio n , F L




9 3 ,6 0 6

9 0 ,5 0 6

8 9 ,2 8 0

8 ,3 7 4

1 ,8 1 9 ,8 4 7

1 ,7 9 4 ,9 6 3

1 ,4 6 7 ,1 9 0

1 6 8 ,5 2 0

1 3 1 ,9 4 1

1 2 8 ,5 7 5

1 0 8 ,8 6 6

3 ,3 5 4

5 6 ,0 2 9

5 6 ,4 4 9

5 1 ,0 5 9

6 ,8 8 8

4 6 8 ,2 0 "

4 4 0 ,3 4 2

3 6 9 ,9 3 3

2 4 ,7 9 2

4 2 ,2 0 0

4 1 ,2 1 4

3 7 ,7 3 7

5 ,5 5 3

3 6 ,6 8 3

3 5 ,5 9 7

3 0 ,7 0 9

4 ,3 1 1

1 5 6 ,0 4 3

1 5 3 ,7 5 9

1 2 1 ,3 2 1

1 0 ,3 8 6

9 4 ,2 8 3

9 2 ,4 5 1

8 3 ,2 7 7

1 0 ,3 3 4

7 6 2 ,5 9 8

7 3 7 ,4 1 4

5 8 6 ,8 2 2

7 3 ,8 6 1

2 8 ,0 2 0

2 7 ,5 3 7

2 6 ,8 1 3

1 ,9 9 7

3 9 2 ,5 8 3

3 6 7 ,0 3 5

3 4 4 ,7 7 4

5 6 ,4 8 6

8 9 ,1 5 5

8 6 ,8 6 8

8 0 ,8 6 6

3 ,7 1 5

1 5 5 ,6 6 9

1 5 6 ,5 3 2

1 4 0 ,6 3 7

1 0 ,6 7 7

89

New RTC C o n s e rv a to rs h ip s Ja n u a ry 1, 1990 th ro u g h D ecem b er 31, 1990
(D ollars in th o u sa n d s)
D ate of
N am e o f In stitu tio n & L o ca tio n

90

T o tal

T ota)

\ssets

1 9 -O ct

H e rita g e F S B , R ichm ond, VA

9 0 0 ,6 5 9

8 8 2 ,1 7 5

7 2 3 ,4 8 1

2 3 -O c t

S u p erio r F S A , C levelan d , O H

9 8 ,5 4 4

9 5 ,6 7 4

5 7 ,6 4 7

3 ,4 4 0

2 6 -O c t

C ity S& LA , San A ntonio, T X

1 9 3 ,3 3 2

1 8 4 ,9 1 6

1 8 2 ,3 0 1

1 5 ,8 0 9

2 6 -O c t

R an ch o B ern ard o F e d . Savings Bank, San D iego , CA

1 1 9 .5 5 0

1 1 9 ,4 4 4

1 1 3 ,0 3 6

4 ,8 9 5

0 2 -N o v

B oonslick S & L A , B oonville, MO

7 0 ,9 5 6

7 0 ,5 1 5

6 9 ,7 2 8

1 0 ,6 0 7

0 2 -N o v

D eso to F S & L A , M ansfield, LA

0 2 -N o v

Riversid e SB, SLA , R iversid e, NJ

0 9 -N o v

E x e cu tiv e B anc SA, F A , N ew B raunfels, T X

0 9 -N o v

F lo rid a F S B , F S B , St P etersb u rg , F L

0 9 -N o v

Lou isian a SB, F S B , K en n er, LA

15-N o v

A ction F S B , Som ers P o in t, NJ

16-N o v
16-N o v
16-N ov

S o u th eastern F S B , C h a rlo tte , N C

3 0 -N o v

A tascosa SA, Jo u rd an to n , T X

3 0 -N o v

E dison FSA , N ew Y ork, NY

3 0 -N o v
3 0 -N o v
3 0 -N o v

5 2 ,4 1 9

6 4 ,8 7 5

6 3 ,7 9 5

6 2 ,8 9 2

7 ,3 4 2

1 8 8 ,7 3 8

1 8 7 ,2 6 7

1 4 4 ,2 9 7

2 9 ,9 6 4

1 7 ,7 5 0

1 6 ,3 1 7

1 5 ,4 9 2

1 ,8 3 0

4 ,1 9 7 ,3 5 8

4 , 1 8 9 ,0 0 8

2 , 2 5 8 ,6 0 9

2 2 1 ,3 2 9

5 9 ,7 4 7

5 8 ,7 4 5

5 0 ,2 1 6

3 ,5 6 0

2 7 1 ,5 1 9

2 6 1 ,1 4 0

1 9 7 ,5 7 1

2 9 ,8 1 6

F irst F e d e ra l Savings A ssoc., Las V egas, NM

5 7 ,1 9 2

5 4 ,9 1 8

4 1 ,1 7 2

6 ,7 3 0

L ib e rty F e d e ra l Savings Bank, H untington Park, CA

5 3 ,9 4 3

5 3 ,1 2 1

5 1 ,6 8 8

2 ,7 7 4

4 3 5 ,3 4 0

4 2 4 ,5 9 9

3 6 7 ,6 2 8

5 0 ,1 4 1

3 4 ,8 6 8

3 4 ,5 7 1

3 2 ,5 8 4

5 ,2 7 2

1 4 0 ,4 9 9

1 3 9 ,5 9 9

1 1 3 ,6 5 0

1 8 ,0 6 2

F irst F S A of N aco g d o ch es, N aco g d o ch es, T X

6 2 ,9 2 7

6 1 ,8 8 4

5 1 ,3 1 1

3 ,8 8 4

F irst SA, F A , Parag ould, AR

6 5 ,8 4 2

6 3 ,5 1 0

4 6 ,6 2 2

6 ,2 9 3

F irst S outhw est F S & L A , T y ler, T X

5 3 ,4 3 3

5 3 ,0 5 6

4 4 ,5 3 2

5 ,7 3 5

3 .5 2 1 ,0 2 3

3 , 3 1 7 ,3 1 4

2 ,7 7 5 ,7 0 1

8 5 ,1 5 3

3 3 ,0 0 4

3 1 ,7 9 1

2 8 ,4 7 5

9 ,6 8 3

3 0 -N o v

San Jacin to SA, F A , B ellaire, T X

3 0 -N o v

T u sk eg ee S& LA , F A , T u sk eg ee In stitu te, A L

0 7 -D e c

A ndrew s S& LA , F A , A ndrew s, T X

1 2 9 ,1 7 0

1 2 6 ,2 3 6

1 0 9 ,1 0 4

8 ,7 3 4

0 7 -D e c

C en tra] F S B , L o n g B e a ch , N Y

9 0 2 ,8 2 1

9 4 7 ,8 4 6

8 3 8 ,1 1 4

1 0 7 ,7 7 8

5 7 8 ,2 9 1

5 3 2 ,6 5 1

4 2 3 ,6 2 7

6 0 ,8 8 6

4 5 ,4 9 7

4 3 ,6 0 5

4 2 ,5 9 8

2 ,8 1 0

1 .5 1 6 ,5 4 7

1 ,4 3 2 ,2 7 8

9 7 3 ,4 6 7

1 1 5 ,3 5 7

0 7 -D e c

F irst FSA o f R aleigh , R aleigh, N C

0 7 -D e c

T exark an a F S & L A , F A , T exark an a, AR

1 4 -D e c

C o m fed SB, F A , L o w elt, MA

14 -D e c

E m p ire F S , F S B , H am m o nto n, NJ

2 2 5 ,0 7 9

2 1 8 ,2 3 9

1 9 2 ,9 5 2

3 5 ,7 9 9

1 4 -D e c

H o m e F S B , F A , W au k eg an , IL

3 5 8 ,1 3 8

3 3 9 ,7 0 5

1 9 5 ,3 2 2

2 4 ,0 6 2

1 4 -D e c

O ld B o ro u g h F S & L A , T ren to n , NJ

1 3 5 ,7 6 1

1 3 7 ,4 1 8

1 1 6 ,0 0 0

1 9 ,9 3 4

1 4 -D e c

O lym p ic F S A , B erw y n , IL

1 ,0 7 4 .0 8 7

1 ,0 4 2 ,4 7 9

6 8 0 ,5 1 2

9 6 ,5 5 0
5 ,2 0 4

2 1 -D ec

A rkansas F S B , F A , L ittle R o ck , AR

7 4 ,7 2 5

7 3 ,4 4 5

6 1 ,5 0 3

2 8 -D ec

F irst F S & L A o f A ndalusia, F A , A ndalusia, A L

3 9 ,6 9 0

3 8 ,6 0 4

3 7 ,5 7 3

4 ,9 9 8

2 8 -D e c

So u th ern F S , N ew O rleans, LA

2 3 5 .2 1 9

2 3 0 ,7 7 7

2 2 8 ,6 6 4

3 5 ,1 5 1

TOTALS

2 0 7 In stitu tio n s

$ 1 2 9 ,7 7 8 ,4 9 0

$ 1 2 8 ,8 8 9 ,9 3 4

$ 9 4 ,8 2 6 ,4 2 4

9 ,2 1 8 ,7 6 3




RTC R e s o lu tio n s Jan u ary 1, 1990 through D ecem b er 31, 1990

(Dollars in thousands)
Date
Total

of
Type

Assets

Cost of

Total

Acquiring Institution and Location

12-Jan

Peoples Heritage, Satina, KS

IDT

1 ,3 8 3 ,2 1 6

1 ,6 3 6 ,7 1 9

1 ,3 2 4 ,8 6 1

9 5 ,9 0 9

9 5 7 ,5 5 7

Branch Sale

12-Jan

First FSB of AK, SB, Anchorage, AK

PA

1 7 4 ,1 6 5

2 2 7 ,3 2 5

1 6 2 ,6 5 5

3 2 ,9 4 9

1 2 9 ,4 9 9

First NB of Anchorage, Anchorage, AK

12-Jan

Home SB, FSB, Anchorage, AK

IDT

8 1 ,5 5 2

9 6 ,4 8 8

6 3 ,4 6 4

5 ,1 9 4

4 5 ,1 8 0

Security Pacific Bank AK, NA,

26-Jan

Universal S&LA, Scottsdale, AZ

PA

7 7 ,4 6 6

9 2 ,4 7 3

8 8 ,1 7 2

7 ,9 5 4

2 5 ,1 1 0

First Arizona S&LA, Glendale, AZ

26-Jan

Modern FS&LA, Grand Junction, CO

PA

5 8 ,0 7 9

5 9 ,7 2 2

5 5 ,6 6 7

8 ,3 0 7

6 ,9 6 5

02-F eb

Bright Banc SA, Dallas, TX

PA

3 ,1 8 3 ,2 1 4

3 ,7 9 3 ,6 2 1

2 ,7 0 7 ,7 4 3

2 5 9 ,9 8 6

1 ,3 8 3 ,8 7 9

02-F eb

Valley FS&LA, Grand Junction, CO

IDT

6 7 ,4 4 2

1 3 5 ,1 0 7

9 0 ,7 4 7

1 4 ,1 7 9

7 9 ,8 5 9

02-F eb

Peoples SA, FA, St. Joseph, MI

PA

7 5 ,2 6 1

8 4 ,6 0 9

8 4 ,0 1 4

1 2 ,2 8 5

5 ,5 7 9

Centennial SB, Durango, CO
Banc One, FSB, Dallas, TX
Mesa NB, Grand Junction, CO
Peoples SB, St. Joseph, MI

02-F eb

Mesa FS&LA of CO, Grand Junction, CO

IDT

1 0 5 ,7 3 4

1 0 7 ,1 3 5

9 3 ,4 2 7

1 4 ,0 4 7

1 1 ,8 3 3

06-F eb

Skokie FS&LA, Skokie, IL

PA

7 4 7 ,2 1 8

7 7 7 ,0 8 7

5 3 4 ,3 3 6

7 7 ,8 3 2

1 6 8 ,4 1 4

Mesa NB, Grand Junction, CO

09-F eb

Community S&LA, Fond Du Lac, WI

PA

1 4 2 ,9 7 4

1 6 1 ,1 5 7

1 4 6 ,8 7 0

2 7 ,9 2 6

3 6 ,7 4 4

09-F eb

Colorado S&LA, Englewood, CO

PA

4 5 ,9 7 8

5 3 ,4 1 2

4 8 ,2 2 7

2 ,0 6 4

1 8 ,2 0 7

Colorado SB, FSB of Grand County,

02-M ar

Centennial FS&LA, Greenville, TX

PA

5 9 ,6 0 8

7 6 ,7 1 0

7 3 ,1 3 3

6 ,7 9 3

3 0 ,9 6 8

NCNB T X NB, Dallas, TX

09-M ar

San Antonio SA, San Antonio, TX

PA

2 ,2 2 7 ,0 4 7

2 ,6 8 7 ,8 0 1

1 ,9 0 1 ,5 9 3

2 7 3 ,3 2 4

8 9 1 ,6 0 0

16-M ar

Bankers S&LA, Galveston, TX

PA

9 3 ,8 4 4

1 0 5 ,7 9 2

1 0 2 ,8 7 6

8 ,3 4 3

2 2 ,6 9 8

12-Apr

Columbia FSB, W estport, CT

PA

1 1 5 ,5 9 6

1 4 2 ,1 0 4

1 3 7 ,8 8 0

1 4 ,6 6 7

3 0 ,3 4 1

13-Apr

Meridian SA, Arlington, TX

IDT

2 5 2 ,1 2 1

6 6 2 ,9 9 8

3 5 2 ,0 8 9

6 ,2 3 3

4 1 7 ,8 3 3

20-A pr

First FS&LA of Hutchinson,

PA

1 3 5 ,8 7 8

1 8 7 ,9 6 6

1 6 0 ,5 7 0

1 7 ,8 4 3

7 1 ,9 9 3

20-A pr

Bedford SA, Bedford, TX

PA

9 4 ,9 2 8

1 1 7 ,1 6 2

8 0 ,1 4 3

5 ,8 7 2

5 9 ,8 4 2

20-A pr

Baltimore Fed. Fin., FSA, Baltimore, MD

IDT

1 ,1 2 9 ,3 8 4

1 ,3 7 3 ,8 2 9

8 7 1 ,2 9 7

1 6 6 ,0 3 1

3 2 3 ,2 1 5

27-A pr

W estco Savings Bank, FSB,

IDT

1 3 0 ,0 7 0

1 4 4 ,5 8 1

1 1 6 ,3 9 5

1 1,081

2 6 ,0 5 5

Affiliated Bank/North Shore Natl,

W l""
Granby, CO
First Gibraltar Bank, FSB, Dallas, TX
NCNB T X NB, Dallas, TX
Gateway Bank, South Norwalk, CT
NCNB TX NB, Dallas, TX
Union NB, Witchita, KS

Richland Hills, TX
Household Bank, FSB,
Frontier Bank, NA, La Palma, CA

27-A pr

Heritagebanc SA, Duncanville, TX

PA

1 5 0 ,5 6 9

1 7 8 ,6 9 8

1 4 1 ,8 0 4

1 7 ,4 3 2

5 6 ,3 8 5

NCNB T X NB, Dallas, TX

27-A pr

New Guaranty FS&LA, Taylor, MI

PA

1 8 5 ,1 0 4

1 9 8 ,5 3 3

1 6 7 ,1 3 2

1 9 ,1 0 3

2 5 ,4 7 9

National Bank of D etroit, Detroit, MI

27-A pr

Financial FS&LA, Joplin, MO

PA

1 4 2 ,6 1 2

1 7 8 ,4 8 0

1 4 8 ,3 8 9

2 9 ,4 1 8

5 9 ,9 3 7

27-A pr

Libertyville FS&LA, Libertyville, IL

PA

6 8 ,7 9 7

8 3 ,2 1 3

8 2 ,3 0 2

1 3 ,2 6 3

9 ,3 9 5

27-A pr

The Guardian FS&LA, Bakersfield, CA

IDT

2 7 ,9 5 2

2 9 ,5 3 3

2 9 ,4 0 0

476

1 8 ,7 2 6

Kansas City, MO
Harris Bank Libertyville, Libertyville, IL
Bank of America NTSA,

27-A pr

Mid Missouri S&LA, FA, Boonville, MO

IDT

4 6 ,2 2 8

6 0 ,7 2 5

4 9 ,7 9 2

5 ,0 1 7

1 5,311

United S&LA, Lebanon, MO

27-A pr

First FS&LA, Bakersfield, CA

PA

1 0 5 ,6 6 7

1 1 7 ,7 2 8

1 1 4 ,2 0 8

1 1 ,1 6 8

1 5 ,8 1 7

Bank of America NTSA,

27-A pr

First FS&LA of the F L Keys,

PA

1 6 0 ,0 9 7

2 0 7 ,6 7 4

1 4 0 ,2 2 4

2 2 ,1 2 5

6 5 ,6 6 2

IDT

4 0 ,9 1 8

4 6 ,4 3 9

3 7 ,9 7 0

4 ,2 8 3

1 5 ,2 6 2

Key W est, F L
04-M ay

The Barber County S&LA,

Key W est, F L
First NB, Medicine Lodge, KS

04-M ay

Fidelity FSB, Corinth, MS

PA

7 6 ,3 7 6

1 4 7 ,3 8 9

1 1 9 ,1 5 0

7 ,5 1 7

9 0 ,7 3 3

04-May

American Interstate SA, Los Angeles, CA

P0

2 1 ,1 5 7

2 1 ,6 9 6

2 0 ,3 2 1

218

2,0 6 1

04-M ay

Peoples S&LA, Parsons, KS

IDT

5 3 ,2 0 8

6 2 ,6 0 4

5 9 ,4 7 3

9 ,5 8 2

1 4 ,7 2 7

04-M ay

Security FSA, Garden Grove, CA

IDT

6 6 ,8 3 0

6 9 ,8 8 7

6 8 ,9 4 7

5 ,4 5 7

2 ,9 3 4

ITT FB, FSB, Irvine, CA

04-M ay

First FS&LA of East Alton, East Alton, IL

IDT

3 7 ,2 3 1

4 1 ,6 7 2

4 1 ,1 7 1

5 ,6 1 5

8 ,2 8 6

Illinois State B&T, East Alton, IL

04-M ay

First State FSA, San Antonio, TX

PA

2 5 4 ,0 3 9

3 9 3 ,3 9 0

3 0 1 ,0 1 8

8,1 4 1

2 7 1 ,2 7 6

Bank One, T X, NA, Dallas, TX

04-M ay

Sierra FS&LA, Beverly Hills, CA

PA

2 9 ,4 5 3

3 3 ,5 5 5

2 3 ,2 9 5

1 ,0 0 4

7 ,7 1 8

Sun SB, FSB, Los Angeles, CA

04-M ay

Guaranty FS&LA, Birmingham, AL

PA

2 8 1 ,8 7 2

3 3 2 ,4 0 6

3 0 2 ,0 9 2

3 9 ,5 6 3

8 6 ,3 5 6

04-M ay

Arrowhead Pacific FSB,

P0

6 2 ,2 8 0

9 5 ,7 5 2

8 2 ,2 3 5

6 ,2 6 9

3 5 ,9 1 6

None

04-May

La Hacienda SA, San Antonio, TX

IDT

6 5 ,5 6 6

1 3 8 ,7 9 4

9 7 ,8 6 6

2 ,9 5 0

9 4 ,7 4 3

First Community Bank, NA, Alice, TX

04-M ay

Mission SA, San Antonio, TX

P0

5 4 ,6 0 5

9 7 ,9 8 3

7 3 ,1 1 8

2 ,0 0 5

6 4 ,7 5 5

04-M ay

United Guaranty FSB, Tullahoma, TN

IDT

6 ,3 8 3

8 ,3 7 0

8 ,3 2 8

847

2 ,6 4 6

Franklin County Bank, W inchester, TN

04-M ay

Mid America FS&LA, Parsons, KS

IDT

6 9 ,1 5 3

7 5 ,3 6 9

7 2 ,6 5 7

1 3 ,1 1 4

9 ,9 0 6

Branch Sale

08-M ay

Peoples S&LA, FA , Streator, IL

IDT

3 4 ,3 4 9

3 7 ,1 6 4

2 1 ,1 4 0

2 ,2 6 3

1 7 ,6 0 0

Branch Sale




BankSouth, FSB, Corinth, MS
None
Branch Sale

^ "g L ^ A L ^ ^ '

None

91

RTC R e s o tu tio n s Ja n u a ry 1, 1990 th ro u g h D ecem b er 31, 1990

(Dollars in thousands)
Date
of

Totat
Name o f Institution and Location

08-May

Home FS&LA, Centralia, IL

Type
IDT

Totat

Cost of

S e t!
3 7 ,4 7 4

Acquiring Institution and Location
4 0 ,4 7 0

3 7 ,3 4 5

6 ,9 2 7

6 ,7 3 3

1 1 -May

Cross Roads S&LA, Checotah, OK

IDT

1 3 ,3 5 5

2 1 ,6 5 6

1 6 ,0 0 7

611

1 1 ,1 5 0

1 1 -May

Ptatte VaHey Savings, Gering, NE

IDT

2 6 6 ,7 5 3

3 6 0 ,9 8 6

2 3 4 ,9 0 8

1 5 ,1 2 2

1 6 9 ,1 4 5

n -M .,

Peoples FS&LA of Thibodaux,

IDT

1 8,291

2 1 ,0 0 5

1 6 ,9 2 4

2 ,8 5 6

9 ,9 6 4

H -M ,y

Cabritto FSB, San Jose, CA

PA

4 7 ,9 0 6

5 0 ,1 2 4

3 9 ,6 9 0

4 ,7 1 8

2 ,0 2 5

1 1-May

Sun SA, FA, Kansas City, KS

IDT

1 4 8 ,7 9 8

1 7 9 ,1 4 3

1 2 5 ,6 0 7

1 2 ,6 3 5

6 5 ,5 0 0

Magna Bank, Centralia, IL
Peoptes NB, Checotah, OK
First NB&TC, North Platte, NE
First Interstate Bk of S. LA,

^ F r a n c i L o 'c A
Brotherhood B&TC, Kansas City, KS

11-May

State Mutua) FS&LA, Jackson, MS

PA

6 ,5 5 2

9 ,0 1 0

6 ,4 3 0

1 ,5 8 5

5 ,8 6 6

1 1-May

First Equity SA, Tombatt, TX

PA

8 0 ,2 3 6

1 3 8 ,8 7 8

1 1 4 ,4 5 7

9 ,8 8 1

7 9 ,7 6 4

First FS&LA, Eunice, LA

IDT

1 2 ,6 2 4

1 5 ,7 3 0

1 5 ,6 7 4

1 ,731

7 ,5 3 9

Guaranty Bank of Mamou, Mamou, LA

Washington S&LA, Stockton, CA

IDT

6 9 ,3 0 3

7 2 ,8 9 9

7 0 ,3 2 5

6 ,8 8 3

4 ,6 5 3

Security Pacific NB, NA,

1 1-May

1 1-May

Topeka Savings FS&LA, Topeka, KS

IDT

8 6 ,9 7 5

1 1 9 ,8 4 4

1 0 0 ,8 6 1

7 ,5 8 9

4 7 ,4 3 9

1 1-May

Royat Oak S&LA, Manteca, CA

IDT

2 1 ,5 7 4

2 4 ,1 2 0

2 0 ,4 2 9

3 ,5 6 9

2 ,7 5 1

Ameriway SA, Houston, TX

PA

1 3 3 ,0 0 3

2 6 2 ,0 6 5

2 0 7 ,4 3 9

1 0 ,2 0 2

1 7 3 ,4 4 4

Amerimac SB, FS, Hittsboro, IL

IDT

1 5 ,7 6 3

2 4 ,3 8 0

1 7 ,5 0 1

2 ,5 4 7

1 0 ,3 5 8

First Com m erce SB, Jackson, MS
Kilgore FS&LA, Kilgore, T X

Bank IV Topeka, NA, Topeka, KS
Bank of Stockton, Stockton, CA
United SA of the SW, FSB,
Houston, TX

15-May

Security SB, FSB, HiHsboro, IL

16-May

Hattmark SA, FA , Ptano, TX

PO

1 3 7 ,0 6 0

2 0 5 ,1 3 0

1 2 3 ,8 3 1

1 ,3 3 3

1 1 7 ,0 4 6

None

18-May

Broadview FSB, FA, Cteveland, OH

PA

1 ,3 2 7 ,9 9 2

1 ,3 6 2 ,2 3 3

8 1 1 ,3 8 4

1 0 5 ,5 9 8

1 8 7 ,9 6 7

First FSB, Cteveland, OH

18-May

Pioneer Savings, FA , Plymouth, IN

PA

7 3 ,7 9 5

8 5 ,0 9 2

8 4 ,2 3 7

1 2 ,4 4 3

9 ,2 6 4

18-May

City FS&LA, Oakland, CA

IDT

1 8 ,2 1 3

2 9 ,4 1 1

2 9 ,2 5 4

3 ,6 5 4

1 1 ,8 9 7

18-May

First FS&LA of Southeast MO, Cape

PA

2 7 0 ,1 5 0

3 2 5 ,3 6 7

2 8 7 ,0 8 2

6 4 ,7 0 6

6 8 ,3 2 1

18-May

Germantown Trust SB, Germantown, TN

IDT

1 1 2 ,4 2 1

1 2 0 ,7 3 0

9 0 ,1 2 4

6 ,5 7 9

3 4 ,5 7 0

18-May

Phenix FS&LA, FA, Phenix City, AL

PA

1 3 1 ,6 6 7

1 6 7 ,7 9 4

1 6 6 ,1 1 0

2 0 ,0 8 5

7 4 ,3 6 4

18-May

Horizon FS&LA, Metairie, LA

PO

3 6 1 ,1 2 2

5 0 0 ,2 9 5

3 4 7 ,5 0 9

1 6 ,2 5 0

4 4 2 ,1 8 0

18-May

Shawnee FS&LA, Topeka, KS

PA

2 2 0 ,5 8 9

2 2 6 ,7 2 5

1 8 9 ,0 0 5

2 3 ,5 8 1

1 8 ,2 0 0

Bank IV Topeka, NA, Topeka, KS

18-May

Midwest FS&LA, Nebraska City, NE

IDT

1 0 5 ,3 3 6

1 3 3 ,7 9 3

9 5 ,5 7 8

1 4 ,1 0 8

3 7 ,1 4 3

American NB, Nebraska City, NE

18-May

Community FS&LA, Newport News, VA

PA

8 ,8 8 1

1 0 ,0 5 0

8 ,7 4 3

1 ,2 6 2

1 ,6 0 6

18-May

Cornerstone FSA, Houston, TX

PA

8 3 ,6 5 1

9 3 ,7 4 7

8 4 ,4 9 2

1 ,3 0 6

2 4 ,2 7 0

PA

8 2 3 ,8 1 7

9 1 1 ,1 8 2

7 2 4 ,5 4 1

3 9 ,2 7 2

3 3 8 ,8 4 7

Ameritrust NB, Elkhart, IN
Mission NB, San Francisco, CA
^ ck so n ^ M S ^

^

Memphis, TN
Branch Sate
None

Consolidated B&TC, Richmond, VA
Houston, TX

1 8-May

W ortd S&LA, Oaktand, CA

^ S p d n g s .C O ^
18-May

Madison County FS&LA, Granite City, IL

IDT

1 0 7 ,0 0 0

1 2 0 ,4 8 2

1 0 8 ,8 0 5

1 8 ,8 2 9

2 7 ,2 9 2

18-May

Peoptes S&LA, Hampton, VA

PA

2 1 .0 3 8

2 2 ,1 7 0

2 1 ,8 5 3

2 ,8 4 4

4 ,0 9 2

22-May

North American FSA, San Antonio, TX

PO

6 2 ,8 6 7

9 0 ,9 2 3

6 2 ,6 5 4

3 ,1 1 6

4 3 ,1 2 1

25-May

Mountainwest S&LA, FS&LA, Ogden, UT

PA

1 5 9 ,6 2 3

2 1 1 ,6 4 5

1 5 8 ,5 9 4

2 5 ,4 2 3

6 7 ,1 5 9

25-May

Otero Savings, Coiorado Springs, CO

IDT

4 3 6 ,0 5 3

5 5 5 ,4 3 0

3 7 5 ,4 7 3

3 1 ,4 7 1

2 5 6 ,8 8 0

25-May

Horizon Financial, FA, Southampton, PA

PA

1 ,8 8 8 ,8 2 5

2 ,1 3 9 ,4 8 8

1 ,5 0 1 ,5 9 7

2 6 8 ,7 5 8

3 3 2 ,7 5 8

25-M ay

Family SB, FSB, Saputpa, OK

IDT

5 0 ,8 9 9

5 1 ,3 1 4

5 0 ,8 3 4

9 ,0 9 3

3 ,0 5 3

Branch Sate
Consolidated B&TC, Richmond, VA
None
Mountainwest Financiat, Sandy, UT
Branch Sate
Branch Sate
American NB&T, Saputpa, OK

25-May

First FS&LA of Brenham, Brenham, TX

IDT

1 1 3 ,7 1 7

1 2 4 ,7 2 9

1 2 3 ,7 3 5

1 6 ,5 9 9

3 6 ,7 9 9

Kitgore FS&LA, Kitgore, TX

25-May

Durand FS&LA, Durand, W I

IDT

9 2 ,1 8 8

1 1 3 ,9 9 7

9 0 ,8 7 1

2 9 ,4 9 9

4 9 ,4 4 8

Branch Sate

25-M ay

Hearne B&LA, Hearne, TX

PO

2 4 ,0 5 9

2 5 ,0 8 6

2 4 ,9 1 8

1 ,7 3 6

5 ,2 6 3

PA

9 6 ,0 0 1

1 2 5 ,9 6 1

1 2 4 ,1 7 9

8 ,4 6 6

4 6 ,5 1 9

Essex SB, FSB, Detray Beach, F L
Zions First NB, Satt Lake City, UT

25-May

None

^ D li y B l a c h ,% f ^ '
25-M ay

Deseret S&LA, FA , Satt Lake City, UT

PA

1 3 3 ,8 3 4

2 2 2 ,8 8 3

1 4 9 ,4 0 0

2 8 ,1 0 0

9 9 ,2 0 4

25-M ay

First FS&LA, Atlanta, GA

IDT

1 7 7 ,0 3 4

2 0 6 ,6 5 4

1 6 3 ,7 7 5

2 1 ,8 0 8

3 5 ,3 0 2

Merchant Bank of Atlanta, Atlanta, GA

29-M ay

Concordia F B for Savings, Lansing, IL

PA

3 8 0 ,7 5 8

4 2 5 ,6 3 4

3 0 0 ,2 8 3

4 8 ,3 1 6

8 9 ,8 1 7

Advance F B for Savings, Lansing, IL

3 1 -May

Sun Country SB of NM, FSB,

PO

5 9 ,7 2 1

9 6 ,9 3 4

6 9 ,0 3 3

6 ,1 2 7

4 4 ,6 5 5

None

3 1 -May

W estern S&LA, FA, Phoenix, AZ

PA

4 ,8 8 2 ,4 8 7

5 ,2 3 3 ,9 2 8

3 ,6 5 0 ,3 3 8

3 6 2 ,2 4 0

1 ,7 2 8 ,1 1 9

01-Jun

FSA of the Southwest, Kitgore, TX

IDT

4 2 ,2 5 8

4 4 ,5 5 6

4 3 ,4 8 0

2 ,1 5 4

1 4 ,9 6 0

01-Jun

First of Kansas, FA , Hays, KS

IDT

3 8 ,3 3 6

4 3 ,0 1 0

3 7 ,2 3 7

5 ,0 0 6

6 ,4 9 3

01-Jun

Lafayette S&LA, Gretna, LA

IDT

2 3 ,8 4 4

2 5 ,0 4 7

2 3 ,1 5 9

2 ,6 5 6

7 ,7 7 9

01-Jun

Spindletop SA, Beaumont, TX

IDT

2 3 3 ,6 4 1

3 4 3 ,8 3 7

2 7 7 ,4 0 3

8,7 7 1

2 5 0 ,0 7 8

01-Jun

Saratoga S&LA, San Jose, CA

IDT

9 4 ,5 1 3

9 0 ,3 3 6

8 1 ,6 5 6

2 ,0 6 8

1 1 ,1 3 3

92




Bank of America, AZ, Phoenix, AZ
Kitgore FS&LA, Kitgore, T X
First NB&T, Satina, KS

First City Bank, NA, Beaumont, TX
Pacific W estern Bank, San Cruz, CA

RTC R e s o lu tio n s Jan u ary 1, 1990 th rou g h D ecem b er 31, 1990

(Dollars in thousands)
Date
Totat

of
Type

Total

A ^ ts

"Hi

Cost of
Acquiring Institution and Location

3 1 ,2 2 5

384

4 ,6 9 0

01-Jun

Financial S&LA, Fresno, CA

PO

2 8 ,8 3 3

3 1 ,6 6 6

01-Jun

Fountainbteau FSB, Stidett, LA

IDT

3 2 ,0 0 3

4 5 ,8 8 5

3 2 ,3 6 1

2 ,5 7 7

2 6 ,5 8 2

01 -Jun

First Venice S&LA, Venice, F L

PA

5 1 ,3 8 3

5 7 ,7 1 1

5 7 ,2 6 2

6 ,2 8 5

5 ,3 3 9

01-Jun

New Braunfels S&LA, New Braunfels, TX

IDT

5 3 ,2 1 3

7 7 ,9 7 0

5 5 ,7 8 6

2 ,6 3 9

4 3 ,7 6 4

08-Jun

Lincoln S&LA, FA, Miami, F L

IDT

1 8 8 ,2 9 8

2 0 3 ,8 2 9

1 9 0 ,4 2 9

1 3 ,0 2 3

5 9 ,4 1 8

08-Jun

Guadalupe S&LA, FA, Kerrvitte, TX

PO

2 6 ,0 1 6

2 6 ,7 4 8

1 7 ,2 9 9

1 ,8 3 9

5 ,4 0 2

08-Jun

Brickettbanc SA, Miami, F L

IDT

None
Slidell, LA
NBD Florida, FSB, Venice, F L
Victoria B&TC, New Braunfeis, TX
^ ilm

i^

None
Helm Bank, Miami, F L

3 4 ,4 9 6

4 4 ,3 9 3

3 2 ,8 2 8

2 ,5 8 6

1 2 ,0 7 3

08-Jun

PA

1 3 3 ,7 4 9

1 6 0 ,5 5 5

1 2 3 ,7 1 1

8 ,3 0 3

5 0 ,9 6 9

08-Jun

PA

1 ,8 0 3 ,6 0 5

1 ,9 7 8 ,2 7 1

1 ,2 8 6 ,0 4 5

2 1 5 ,9 3 8

2 8 4 ,4 2 1

Pacific First FSB, Seattle, WA
Annapolis NB, Annapolis, MD

" A

^ e r q u e 'r " '

Salt Lake City, UT
08-Jun

Gibraltar S&LA, Annapolis, MD

PA

2 8 ,4 6 2

3 3 ,4 9 8

3 0 ,0 5 2

5 ,6 6 4

9 ,6 4 4

08-Jun

East Texas S&LA, Tyler, TX

PA

3 6 0 ,2 8 9

3 6 8 ,9 5 6

2 1 0 ,1 4 1

2 2 ,4 5 8

8 6 ,3 9 3

08-Jun

Royal Palm FS&LA,

IDT

4 9 3 ,6 2 8

5 3 0 ,6 7 2

3 5 7 ,6 5 0

2 2 ,6 4 2

1 5 3 ,6 7 9

08-Jun

Aspen SB, FSB, Aspen, CO

IDT

3 4 2 ,9 5 6

3 8 0 ,5 4 4

3 4 0 ,6 1 4

6 2 ,4 5 3

3 1 ,8 4 8

W est Palm Beach, F L

NCNB T X NB, Dattas, TX
Palm Beach, F L
The Bank of Aspen, Aspen, CO

08-Jun

Vattey SB, FSB, Roswett, NM

PO

1 4 7 ,6 7 0

2 6 2 ,9 9 6

2 4 4 ,0 3 1

2 2 ,6 5 6

1 3 0 ,5 0 2

08-Jun

American S&LA, FA, New Orteans, LA

IDT

5 9 ,4 7 8

6 8 ,2 1 6

6 2 ,3 5 1

2 ,8 9 5

3 3 ,5 3 7

Gutf Coast B&TC, New Orleans, LA

08-Jun

Gateway FSB, Oakland, CA

PA

6 2 ,0 5 3

1 2 9 ,9 2 5

6 9 ,6 7 3

3 ,5 7 9

6 8 ,8 6 4

Gateway Bank, FSB, San Francisco, CA

08-Jun

First FS&LA, Largo, F L

IDT

2 5 5 ,5 4 2

3 5 3 ,5 8 7

3 4 4 ,9 3 8

3 3 ,5 8 6

1 0 6 ,0 6 3

08-Jun

Murray FS&LA, Dallas, TX

PA

1 ,0 6 9 ,0 9 8

1 ,2 6 1 ,7 4 9

1 ,1 5 8 ,8 3 1

8 8 ,7 4 5

5 0 4 ,1 8 5

08-Jun

Southside FS&LA, Austin, TX

PO

4 5 ,2 6 8

4 9 ,9 8 7

3 5 ,3 5 0

2,8 8 1

1 7 ,4 1 5

15-Jun

Piano S&LA, FA, Piano, TX

IDT

2 6 7 ,4 5 3

2 7 6 ,8 5 8

2 5 5 ,4 9 5

1 5 ,3 6 8

1 3 1 ,3 3 8

15-Jun

First FS&LA, Estherville, IA

PA

5 0 ,9 4 7

5 2 ,3 8 6

5 0 ,3 5 0

7 ,2 6 6

9 ,7 9 7

15-Jun

Home FS&LA, Memphis, TN

PA

1 8 3 ,7 6 1

2 0 8 ,9 5 4

1 6 3 ,8 2 6

4 ,0 0 2

3 4 ,5 5 5

15-Jun

Bexar SA, San Antonio, TX

PA

9 4 0 ,1 3 8

9 8 7 ,4 2 7

8 0 6 ,1 9 2

2 8 ,7 2 8

4 8 2 ,6 1 4

None

St. Petersburg, F L
United SA of the SW, FSB,
Houston, TX
None
First Gibraltar Bank, FSB, Plano, TX
Branch Sate
Memphis, TN
Sunbelt Savings, Dallas, TX

15-Jun

First FSB, Diamondvitte, WY

PO

2 1 ,4 9 7

2 1 ,4 8 4

1 8 ,5 0 2

1 ,8 3 5

1 1 ,3 2 6

None

15-Jun

Family FS&LA, Shreveport, LA

IDT

2 6 ,6 5 0

2 9 ,1 8 2

2 1 ,4 6 0

1,6 4 3

1 5 ,1 2 2

City B&T of Shreveport, Shreveport, LA

15-Jun

Unifirst Bank for Savings, Jackson, MS

PA

7 0 0 ,8 1 0

7 3 3 ,1 8 4

5 5 0 ,7 8 9

7 5 ,2 4 8

1 2 1 ,6 0 1

Branch Sale

15-Jun

First S&LA, FA , W aco, TX

PA

3 7 5 ,4 0 0

4 1 1 ,3 3 8

4 0 5 ,9 4 9

4 5 ,4 0 6

1 3 7 ,5 6 4

Kilgore FS&LA, Kitgore, TX

15-Jun

Lincoin FS&LA, Mt. Carmet, TN

IDT

5 1 ,1 9 8

5 8 ,4 0 9

4 1 ,8 4 4

5 ,7 4 2

1 5 ,9 8 2

Executive Park NB, Kingsport, TN

15-Jun

Century FSB, Trenton, TN

PA

6 0 ,4 1 7

7 1 ,8 9 8

6 1 ,7 8 3

6 ,1 6 3

2 0 ,7 5 0

Security Bank, Newbern, TN

15-Jun

Sentinel FS&LA, Phoenix, AZ

IDT

1 7 2 ,1 6 8

1 6 9 ,7 5 9

1 6 4 ,1 5 9

8 ,1 3 0

2 7 ,4 8 6

15-Jun

New Mexico FSA, Atbuquerque, NM

PA

1 8 6 ,6 7 4

2 0 9 ,9 8 2

1 7 6 ,9 8 1

2 0 ,4 2 7

4 8 ,7 4 5

15-Jun

Gilt SA, San Antonio, TX

PA

1 ,0 8 1 ,1 8 2

1 ,9 8 3 ,6 0 5

1 ,2 9 7 ,1 2 8

5 3 ,2 2 1

1 ,2 3 8 ,0 8 7

15-Jun

First Savings of Laredo, Laredo, TX

PO

1 7 5 ,5 6 4

1 8 4 ,4 0 9

1 4 3 ,3 0 3

4 ,5 2 3

6 9 ,5 8 7

15-Jun

Btue Vattey FS&LA, Kansas City, MO

IDT

6 9 8 ,9 2 4

8 0 0 ,2 2 7

6 8 9 ,6 7 6

1 0 3 ,6 6 7

2 2 3 ,6 1 4

19-Jun

American Security FS&LA, Chicago, IL

PA

3 2 ,9 1 4

3 8 ,8 7 5

3 8 ,2 6 1

4 ,3 2 7

5 ,7 2 6

22-Jun

Alpine Savings, Steamboat Springs, CO

PO

4 5 ,5 0 7

5 2 ,8 4 9

3 6 ,1 0 6

5 ,3 3 9

1 0 ,8 8 8

22-Jun

Equitable FS&LA, Columbus, NE

PA

7 1 ,7 1 5

7 2 ,8 4 9

6 0 ,5 9 9

1 2 ,5 1 6

8 ,4 2 7

22-Jun

Cass FS&LA of St. Louis, Florissant, MO

IDT

4 7 ,5 5 1

6 0 ,2 6 2

5 8 ,7 8 0

8,1 1 1

1 5 ,1 2 3

First Exchange Bank, Florissant, MO

22-Jun

Unipoint FSB, Trumann, AR

PA

1 4 ,4 6 3

3 0 ,8 2 3

2 5 ,4 7 0

3 ,7 1 7

1 7 ,6 3 7

UNICO Bank, FSB, Trumann, AK

22-Jun

Taytorbanc FS&LA, Taytor, TX

PA

1 3 8 ,1 7 3

1 4 7 ,9 0 5

12 9 ,2 4 1

1 5 ,6 6 8

3 6 ,4 9 9

Kilgore FS&LA, Kitgore, TX

22-Jun

Landmark SB, FSB, Hot Springs, AR

PA

1 1 5 ,7 8 7

1 6 3 ,5 5 3

1 3 0 ,1 1 3

1 6 ,0 0 7

8 1 ,3 8 1

Branch Sate

First NB, Albuquerque, NM
Sunbelt Savings, Dallas, TX
None
Branch Sale
Marquette NB, Chicago, IL
None
Conservative SB, Omaha, NE

22-Jun

Home S&LA, New Orleans, LA

PO

3 0 ,5 3 4

3 4 ,6 6 0

3 2 ,3 1 4

1,778

1 8 ,7 1 1

None

22-Jun

Central S&LA, New Orleans, LA

IDT

5 2 ,2 6 6

7 1 ,3 8 1

5 6 ,4 2 3

9 ,3 3 8

3 4 ,8 9 3

Gutf Coast B&TC, New Orteans, LA

22-Jun

First FS&LA, Summervitte, GA

PA

2 6 ,6 0 4

3 2 ,2 5 8

3 1 ,5 8 3

6 ,0 9 3

7 ,1 8 0

22-Jun

Occidenta! SB, Omaha, NE

PA

5 7 7 ,8 1 9

6 7 8 ,3 0 7

5 1 2 ,0 4 4

8 2 ,0 8 8

1 4 8 ,1 1 9

InterFederat SB, Chatanooga, TN
Firstier SB, FSB, Omaha, NE

22-Jun

Frontier FS&LA, Walla Walla, WA

PA

1 5 6 ,8 8 7

1 5 0 ,9 3 5

1 2 1 ,5 3 4

1 5 ,4 4 5

3 ,4 0 2

22-Jun

Witshire S&LA, Los Angetes, CA

PO

8 0 ,8 7 8

8 1 ,5 6 2

7 5 ,5 6 4

1,5 4 5

2,7 8 1

None

22-Jun

Huntington S&LA, Huntington Beach, CA

PA

1 1 5 ,5 0 5

1 1 4 ,7 4 5

1 1 4 ,0 6 3

6 ,3 4 4

4 ,4 6 4

American SB, Stockton, CA

22-Jun

Citizens S&LA, Springfield, IL

PA

7 7 ,8 1 7

8 1 ,0 2 6

6 9 ,4 2 5

8',051

4 ,9 6 6

Magna Bank, Springfietd, IL




Washington Mutual, FSB, Seattte, WA

93

RTC R e s o )u tio n s Ja n u a ry 1, 1990 th ro u g h D ecem b er 31, 1990

(Dollars in thousands)
Date
of

Tota)
Name o f Institution and Location

22-Jun

Type
PA

Tota)

Cost of

Assets
1 1 ,9 4 8

Acquiring Institution and Location
1 7 ,8 0 5

1 7 ,5 3 2

2 ,9 4 3

6 ,6 3 4

Mountain NB, Woodtand Park, CO

Woodtand Park, CO
22-Jun

First FSA of York, York, NE

PA

5 5 ,1 3 6

5 8 ,2 2 8

4 9 ,5 5 5

9 ,4 4 9

7 ,6 0 4

22-Jun

Universa) FSB, Houston, TX

IDT

2 1 0 ,2 0 8

3 5 2 ,9 7 8

2 4 4 ,9 1 6

9 ,1 5 2

2 2 2 ,9 4 0

FN B of York, York, NE
Channe]view Bank, Channelview, TX

22-Jun

Midwestern SA, Macomb, IL

PA

8 0 ,2 4 9

9 8 ,7 8 7

7 6 ,2 7 5

1 1 ,6 5 2

2 5 ,9 6 6

Union NB of Macomb, Macomb, IL

22-Jun

First Garland FS&LA, Garland, TX

PA

1 2 2 ,5 3 9

1 2 9 ,8 5 3

9 8 ,2 3 2

1 0 ,5 8 2

2 2 ,9 6 9

Kitgore FS&LA, Kitgore, TX

22-Jun

Metropotitan Financial FSB, Dattas, TX

PA

7 9 9 ,3 5 8

8 5 8 ,9 2 1

7 1 4 ,5 7 5

4 6 ,8 8 7

2 5 9 ,3 2 1

22-Jun

Peninsu)a FSB, South San Francisco, CA

IDT

5 1 ,9 7 3

5 1 ,7 4 4

4 6 ,1 4 2

2 ,4 7 3

772

United SA of the SW, FSB,
Houston, TX
San Mateo County NB, San Mateo, CA

22-Jun

Famity FSA, DaHas, OR

PA

1 5 6 ,4 9 9

1 5 9 ,2 9 4

9 7 ,6 5 9

1 3 ,7 7 4

9 ,0 2 4

22-Jun

Anchor FS&LA, Kansas City, KS

PA

6 4 5 ,7 6 0

6 9 5 ,8 4 3

4 6 9 ,8 0 9

6 4 ,4 9 8

6 4 ,5 1 9

Washington FS&LA, Seattte, WA

22-Jun

First Savings of Americus, Americus, GA

PA

4 7 ,8 6 6

4 9 ,8 8 2

4 4 ,5 8 7

8 ,5 9 8

1 0 ,6 6 5

22-Jun

Great Southern FS&LA, Savannah, GA

PA

5 8 7 ,4 8 4

6 8 3 ,9 0 5

5 1 3 ,6 3 0

7 3 ,8 4 1

1 8 3 ,0 3 0

22-Jun

Denton FS&LA, Denton, TX

PA

1 6 0 ,3 5 4

1 5 3 ,2 6 8

1 4 3 ,3 6 7

1 3 ,9 5 6

2 8 ,4 8 7

28-Jun

Sun FSA, F ort Dodge, IA

PA

2 3 ,7 7 3

2 3 ,2 1 9

1 8 ,5 6 1

1 ,8 9 7

2 ,1 6 2

Ida County State Bank, Ida Grove, IA

28-Jun

St. Louis County SA, FA, Ferguson, MO

PA

8 6 ,7 5 5

9 1 ,2 4 2

8 0 ,8 5 1

1 2 ,1 1 2

3 ,8 3 3

South Side NB in St. Louis,

IDT

5 0 ,3 2 8

9 2 ,3 4 1

8 4 ,7 2 5

2 ,3 3 7

6 5 ,6 8 5

Bank IV Kansas Assoc., NA, Olative, KS
Sumter Bank & Trust, Americus, GA
First Atlanta Bank, Atlanta, GA
Kilgore FS&LA, Kilgore, TX

St. Louis, MO
29-Jun

Southbank FSB, Corinth, MS

29-Jun

Colorado SB, FSB, Sterting, CO

IDT

9 ,2 6 0

1 0 ,7 1 5

1 0 ,3 0 7

2 ,5 8 5

1 ,7 7 5

29-Jun

VaHey FSA, McAllen, TX

PA

5 3 5 ,9 3 8

5 8 3 ,5 2 3

5 2 8 ,1 1 9

4 6 ,7 8 4

2 0 9 ,2 9 7

Cotorado FSB, Sterting, CO

29-Jun

E)ysian FSB, Hoboken, NJ

PA

1 2 2 ,1 9 6

1 2 7 ,3 7 7

1 2 2 ,4 0 3

8 ,6 8 2

3 3 ,4 8 7

Pamrapo SB, S&LA, Bayonne, NJ

29-Jun

MarshaH SA, FA, Marsha)), TX

PA

6 1 ,0 1 4

6 1 ,0 8 6

5 4 ,7 4 2

4 ,8 6 3

2 1 ,8 3 7

Kiigore FS&LA, Kitgore, TX

29-Jun

First FS&LA of Colo. Springs,

PA

2 9 3 ,8 6 0

3 7 1 ,3 3 6

2 8 3 ,7 3 0

1 7 ,4 8 6

1 3 8 ,0 4 9

29-Jun

Capita] FS&LA, Litt)e Rock, AR

IDT

7 5 ,7 1 9

8 6 ,0 7 3

4 4 ,3 0 2

3 ,2 2 9

2 3 ,4 4 1

29-Jun

Gibrattar Savings, FA, Simi VaHey, CA

PA

7 ,0 8 2 .7 6 2

6 ,9 8 2 ,0 1 9

5 ,2 7 0 ,1 9 4

5 1 8 ,0 9 3

5 2 1 ,6 1 9

Laredo, TX

29-Jun

Constitution FSA, Monterey Park, CA

PO

6 6 ,7 4 3

6 6 ,5 4 1

6 4 ,7 2 7

5 ,2 2 2

1 ,4 8 4

29-Jun

Rusk FS&LA, Rusk, TX

IDT

3 4 ,3 2 1

4 4 ,9 5 2

3 3 ,7 8 7

3 ,9 1 0

2 3 ,6 5 4

29-Jun

Gibraltar Savings, FSB, Seattle, WA

PA

1 ,3 8 8 ,1 7 5

1 ,3 6 3 ,7 2 5

1 ,2 2 9 ,8 2 4

8 0 ,9 8 2

1 0 6 ,1 2 5

29-Jun

Centrust Bank, Miami, F L

PA

6 ,7 9 3 ,9 8 8

7 ,5 4 9 ,9 1 3

5 ,1 5 8 ,6 4 7

3 0 3 ,5 8 3

1 ,7 0 4 ,8 1 8

29-Jun

B)ack Hawk S&LA, FA, Rock Island, IL

PA

5 6 ,9 0 8

5 7 ,4 2 5

5 6 ,4 6 3

7 ,8 7 9

2,2 1 1

29-Jun

Genera) SA, Henderson, TX

PA

4 0 ,2 5 8

5 0 ,5 0 5

4 0 ,5 5 3

3 ,6 6 3

1 8 ,4 2 8

Branch Sate
Security Pacific NB, NA,
None
Citizens Bank, Rusk, TX
Branch Sate
Great W estern Bank, FSB,
Beveriy Hitts, CA
^R ock M a J ^ I L

29-Jun

Detta FS&LA, Drew, MS

IDT

6 ,6 3 5

1 1 ,7 8 0

1 1 ,3 8 3

1 ,9 7 4

7 ,4 9 7

06-Ju]

United SB, FSB, Windom, MN

IDT

1 7 2 ,5 7 1

1 7 3 ,0 1 9

1 3 2 ,7 5 4

1 0 ,6 5 5

3 1 ,4 0 0

Detta Bank & Trust, Drew , MS

06-Ju)

First Savings B&T, FSB,

IDT

2 8 ,6 7 0

2 7 ,2 8 8

2 0 ,9 8 1

2 ,1 1 9

3 ,3 1 3

20-Ju)

Sun S&LA, Parker, CO

PO

2 2 9 ,4 6 0

2 9 8 ,6 5 4

2 3 9 ,2 8 9

7 ,7 4 8

1 5 6 ,7 6 0

20-Ju)

United FS&LA, Vidalia, LA

PA

1 8 ,9 7 5

1 8 ,9 9 8

1 8 ,8 2 9

2 ,1 1 7

0

10-Aug

Batdwin County FSB, Robertsdale, AL

PA

1 4 4 ,4 4 1

1 5 6 ,1 2 5

1 3 7 ,2 2 1

1 9 ,7 9 9

2 0 ,7 7 3

First Alabama Bank, M ontgomery, AL

10-Aug

Colonial FSA, Prairie Village, KS

PA

1 0 7 ,4 0 5

1 2 5 ,1 1 7

9 4 ,7 6 6

1 1 ,0 1 8

2 5,381

First Cotoniat Bank NA,

10-Aug

Banc Iowa SB, Cedar Rapids, IA

PA

1 1 9 ,6 6 5

1 3 2 ,8 7 7

1 1 5 ,7 8 0

2 1 ,6 5 7

2 7 ,9 6 9

Branch Sate

10-Aug

Garnett S&LA, Garnett, KS

PA

1 4 ,0 0 3

1 4 ,5 8 5

1 4 ,5 0 3

2 ,6 6 5

1 ,3 1 7

10-Aug

Citizens of T X S&LA, Baytown, TX

PA

5 5 ,6 2 1

1 2 7 ,0 7 5

1 0 8 ,2 0 1

5 ,0 1 7

8 0 ,1 5 7

10-Aug

Permian S&LA, Kermit, TX

PO

7 ,2 0 0

9 ,0 7 3

8 ,8 8 2

833

2,371

17-Aug

The Duncan S&LA, Duncan, OK

PA

1 2 6 ,3 6 2

1 3 3 ,7 0 6

1 2 0 ,2 0 4

1 3 ,4 2 6

3 2 ,0 9 4

17-Aug

Security FS&LA, Peoria, IL

PA

1 7 4 ,9 8 0

2 0 0 ,8 5 9

1 8 3 ,5 7 7

3 0 ,0 6 9

4 6 ,0 4 6

First Financiat Bank, Stevens Point, W I

17-Aug

Great Plains SA, FA, W eatherford, OK

PA

7 9 ,8 8 3

8 4 ,1 6 8

5 3 ,8 2 8

6 ,8 8 7

1 8 ,9 8 8

Locat FS&LA, Oktahoma City, OK

17-Aug

Provident SA, FA, Casper, WY

PA

1 9 3 ,8 0 0

1 9 6 ,5 1 9

1 6 5 ,4 6 3

2 6 ,3 0 3

2 1 ,7 2 9

Key Bank of W Y - Casper, Casper, W Y

17-Aug

First FS&LA, Baton Rouge, LA

IDT

3 3 ,4 9 4

5 5 ,3 7 0

3 4 ,5 3 6

4 ,2 7 5

3 3 ,9 4 3

Life SB, Baton Rouge, LA

17-Aug

Texas W estern FSA, Houston, TX

PO

6 5 ,6 2 4

7 9 ,3 2 2

6 0 ,2 9 9

7 ,7 0 5

1 6 ,4 7 7

None

17-Aug

Miami SB, Miami, F L

PA

1 0 7 ,5 8 1

1 3 3 ,7 8 2

1 3 1 ,4 4 4

1 1 ,6 8 9

5 3 ,7 4 5

Repubtic NB of Miami, Miami, F L

17-Aug

Salamanca FSA, Salamanca, NY

PA

2 7 ,8 7 0

2 7 ,5 8 3

2 7 ,2 4 5

3 ,5 6 8

1 ,8 7 3

Branch Sate
Bank 10, Betton, MO
None
Concordia B&TC, Vidalia, LA

Prairie Viltage, KS

94




Farm ers State Bank, Btue Mound, KS
W est Loop S&LA, Houston, TX
None
Locat FS&LA, Oktahoma City, OK

Cattaraugus City Bank, Littte VaHey, NY

R T C R e s o tu tio n s Jan u ary 1. 1990 throu gh D ecem ber 31, 1990

(Dollars in thousands)
Date
Totat

of
Type

Cost of

Tota!

Acquiring Institution and Location

A^ets
1 5 4 ,5 9 4

1 5 0 ,4 4 4

1 2 4 ,2 8 9

1 9 ,0 8 8

2 5 ,8 9 6

CB&T Bank of Middte GA,
None

17-Aug

First Federal SA, W arner Robins, GA

PA

17-Aug

W esport FSB, Hanford, CA

PO

1 4 8 ,1 1 8

1 4 9 ,5 4 9

1 4 3 ,3 5 7

4 ,4 2 4

1 9 ,6 0 9

17-Aug

Ittinois SB, FA, Peoria, IL

PA

3 8 ,0 3 4

4 6 ,9 1 3

4 2 ,9 0 0

5 ,2 7 2

9 ,4 0 3

22-A ug

Sweetwater FS&LA, Rock Springs, WY

PA

1 2 ,3 8 4

1 1 ,7 7 3

1 1 ,6 5 3

1 ,0 5 7

761

22-A ug

Fidetity SB, FSB, Danvitte, IL

PA

1 4 ,0 1 2

1 3 ,3 0 8

1 2 ,9 9 6

1 ,5 6 4

1,6 7 2

First Midwest Bank, Danville, IL

24-Aug

ChiHicothe FS&LA, ChiHicothe, IL

PA

3 5 ,1 3 9

4 0 ,6 3 5

4 0 ,3 2 4

4 ,5 3 0

5 ,9 4 8

Southside Trust & SB of Peoria,
CarroHton B&TC, Carrottton, IL

First FS&LA of Bureau County,
First Security Bank, Rock Springs, CO

24-Aug

Heritage S&LA, FA, JerseyviHe, IL

PA

2 5 ,6 6 0

2 6 ,6 9 8

2 3 ,4 9 4

4,7 6 1

1,1 9 7

24-Aug

Jefferson S&LA, Beaumont, TX

IDT

1 1 6 ,3 9 4

1 5 7 ,0 4 2

1 2 2 ,8 5 4

1 2 ,2 6 1

7 6 ,9 6 5

Kitgore FS&LA, Kitfore, TX

24-A ug

Investment FS&LA, Chatsworth, CA

PA

2 1 4 ,3 3 8

2 2 1 ,8 8 3

2 1 6 ,2 3 5

1 1 ,5 0 7

1 0 ,4 3 8

Fidetity FB, FSB, Gtendate, CA

24-A ug

Gotden Circte SA, FSB, Corsicana, TX

PO

1 3 ,0 9 3

1 4 ,5 4 6

1 4 ,2 9 7

797

2 ,7 3 9

24-Aug

Laketand SB, FSB, Detroit Lakes, MN

IDT

7 3 ,5 5 6

7 7 ,9 6 1

6 6 ,5 3 5

1 2 ,2 7 3

1 1 ,3 7 6

24-Aug

W estwood S&LA, Los Angeles, CA

PA

3 3 5 ,2 2 8

5 2 0 ,1 4 6

3 5 6 ,6 4 6

8 ,1 2 2

2 5 9 ,4 6 7

3 1 -Aug

W estern Em pire FS&LA, Irvine, CA

IDT

2 2 8 ,2 7 7

2 3 7 ,1 1 4

2 2 3 ,0 0 9

6 ,3 5 2

2 4 ,0 4 9

3 1 -Aug

Spring Branch S&LA, Houston, TX

PA

1 0 0 ,0 5 8

1 6 8 ,4 1 8

1 5 1 ,1 0 4

1 4 ,9 0 0

1 0 0 ,4 0 2

Coastat Banc SA, Houston, TX

31-Aug

Caguas Central FSB, Caguas, PR

PA

1 ,6 0 6 ,8 0 4

1 ,5 7 3 ,2 9 3

1 ,0 3 3 ,4 5 9

1 2 8 ,3 3 4

1 1 9 ,6 2 5

Banco Santander PR, Hato Rey, PR
League City B&T, League City, TX

None
Steepy Eye, MN

3 1 -Aug

City SA, League City, TX

IDT

1 5 ,8 7 4

3 2 ,8 0 5

3 2 ,4 4 5

1,881

2 0 ,2 5 2

0 7 -Sep

Independence FB, FSB, BatesviHe, AR

IDT

1 6 8 ,8 5 1

3 9 5 ,0 1 2

3 2 3 ,4 6 5

2 5 ,8 4 1

2 9 1 ,3 6 9

07-Sep

Fairm ont FSA, Fairmont, MN

PA

3 4 ,5 7 7

3 7 ,1 7 5

3 6 ,3 1 2

6 ,4 5 5

3 ,6 8 1

0 7 -Sep

Enterprise FS, FSA, Ctearwater, F L

PA

4 2 ,9 7 8

4 3 ,6 3 2

3 9 ,9 4 7

2 ,7 5 5

814

07-Sep

Community FS&LA, Tampa, F L

PO

8 ,5 3 2

1 6 ,7 3 8

1 2 ,6 1 5

2 ,6 9 2

1 1 ,6 2 2

07-Sep

First City FS&LA, Baton Rouge, LA

PA

1 4 ,3 4 3

1 9 ,7 8 2

1 8 ,6 1 4

1 ,7 9 4

8 ,6 5 4

PA

1 5 9 ,5 8 8

1 8 1 ,7 2 1

1 5 1 ,3 8 2

2 7 ,2 9 2

3 8 ,6 1 9

Fidetity FB, FSB, Gtendate, CA
Southern Catifornia Bank, Downey, CA

W orthen B&TC, NA, Little Rock, AR
^ F a i r m o n 'M N

07-Sep

Com erica Bank - Ftorida, FSB,
None
Equitabte Trust S&LA, Baton Rouge, LA
Citizens Banking Co., Satinevitte, OH

Attiance, OH
07-Sep

FirstCentrat FSB, Chariton, IA

PA

8 8 ,8 7 8

8 9 ,8 5 4

8 8 ,3 1 5

1 3 ,1 2 8

7 ,5 1 8

Branch Sate

07-Sep

Gem City FS&LA, Quincy, IL

PA

1 9 5 ,7 8 4

2 0 9 ,1 9 2

1 9 1 ,7 3 4

2 7 ,6 6 3

1 9 ,9 1 8

Branch Sate

07-Sep

The Benjamin Franklin FS&LA,

PA

3 ,9 3 9 ,7 6 6

3 ,9 6 4 ,2 5 1

2 ,7 3 4 ,4 3 1

4 0 8 ,2 4 3

1 0 4 ,9 3 9

Bank of America, FSB, Porttand, OR

Portland, OR
07-Sep

Missouri SA, FA, Clayton, MO

PA

4 8 8 ,2 8 6

5 2 9 ,1 7 9

4 5 6 ,2 1 9

1 0 5 ,5 3 4

9 4 ,6 4 0

07-Sep

Home Owners SB, FSB, Burtington, MA

PA

2 ,9 3 4 ,6 9 0

3 ,3 1 0 ,6 0 1

2 ,4 6 5 ,0 6 1

1 7 0 ,5 4 5

8 0 5 ,7 9 5

12-Sep

American Home S&LA, FA, Edmond, OK

PA

5 4 ,8 9 2

5 9 ,2 3 2

4 4 ,5 2 9

3 ,8 7 5

1 9 ,3 9 0

Founders B&TC, Oktahoma City, OK

14-Sep

Suburban SA, San Antonio, TX

PA

3 4 ,2 4 2

4 9 ,2 3 7

2 8 ,5 7 0

2 ,2 1 5

2 1 ,6 8 8

Ptaza Bank, NA, San Antonio, TX

1 4 -Sep

Capito] City FSA, Austin, TX

PA

4 1 9 ,7 2 9

4 6 7 ,3 1 4

2 2 7 ,2 7 4

1 9 ,4 1 6

1 5 1 ,2 0 6

14-Sep

C rest FS&LA, Kankakee, IL

IDT

1 2 0 ,6 3 3

1 1 8 ,4 3 7

1 0 5 ,5 5 9

1 5 ,2 0 7

1 2 ,9 7 5

14-Sep

First Network FSB, Los Angetes, CA

4 1 2 ,8 9 6

4 0 3 ,7 9 6

3 7 2 ,9 3 3

1 2 ,3 8 2

1 3 8 ,7 0 2

St. Louis, MO

1 4-Sep

Community FSA, Bridgeport, CT

PO
IDT

3 4 ,7 4 7

3 7 ,0 5 3

3 6 ,4 8 6

1,741

4 ,6 5 3

14-Sep

Equity FSB, Denver, CO

PO

1 ,7 3 2

3 ,3 1 1

2 ,9 6 7

104

1 ,5 8 4

14-Sep

MeritBanc SA, Houston, TX

PA

2 2 9 ,1 2 1

3 9 2 ,9 6 2

3 0 6 ,9 6 0

2 0 ,2 9 5

2 1 0 ,6 6 5

14-Sep

City FS&LA, Birmingham, AL

PA

4 5 2 ,1 2 9

5 0 5 ,2 7 1

4 9 3 ,2 5 9

1 1 9 ,8 9 9

8 6 ,4 0 8

IDT

1 9 2 ,0 5 8

2 2 7 ,6 3 9

2 1 9 ,7 7 7

3 0 ,2 4 9

8 1 ,8 3 0

14-Sep
14-Sep

Wittiamsburg FS&LA, Salt Lake City, UT

PA

2 8 2 ,5 7 6

2 8 5 ,9 4 2

2 2 3 ,9 4 4

4 5 ,7 4 8

3 6 ,5 3 7

14-Sep

Sooner FSA, Tulsa, OK

PA

1 ,1 8 3 ,9 7 7

1 ,2 3 5 ,8 1 3

1 ,0 4 6 ,6 6 3

1 5 2 ,4 8 1

1 4 8 ,6 9 8

2 1 -Sep

First FS&LA of Seminote, Seminote, OK

IDT

2 5 ,5 5 5

2 9 ,9 4 3

2 9 ,5 1 3

3 ,2 9 8

8,6 3 1

2 1 -Sep

First SA, FA, Bismark, ND

IDT

8 9 ,0 4 0

9 6 ,1 6 6

8 5 ,0 6 8

1 4 ,8 1 0

1 0 ,9 1 9

Branch Sate

Bank One, TX, NA, Dattas, TX
Branch Sate
None
Union Trust Co., Stanford, CT
None
Kitgore FS&LA, Kitgore, TX
First Atabama Bank, Montgomery, AL

Branch Sate
First Gibrattar Bank, FSB,
San Antonio, TX
First NB&TC of HotdenviHe,
Hotdenvitte, OK
Metropotitan FB, FSB, Fargo, ND

2 1 -Sep

Caprock FS&LA, Lubbock, TX

PO

4 7 5 ,9 6 9

5 8 3 ,6 0 4

4 3 7 ,8 1 1

1 2 ,8 5 7

2 9 8 ,9 9 4

None

2 1 -Sep

Midwest FSB, Minot, ND

PA

5 5 2 ,8 8 1

6 4 1 ,2 7 5

4 9 7 ,6 8 1

7 3 ,9 1 9

1 5 6 ,5 8 6

Branch Sate

21-Sep

M . - c y FS M .A ,

PA

1 ,8 0 3 ,8 4 8

1 ,8 2 0 ,9 8 4

1 ,4 3 9 ,3 7 7

1 5 2 ,2 9 6

3 3 ,7 1 6

Security Pacific NB, NA,

2 1 -Sep

North Carotina S&LA, FA, Chartotte, NC

PA

5 0 6 ,6 1 9

5 1 3 ,1 8 8

3 6 2 ,4 3 4

5 7 ,9 3 3

4 8 ,2 7 5

First Citizens B&TC, Rateigh, NC

21-Sep

Heritage FS&LA, Monroe, NC

PA

2 0 3 ,6 8 8

2 5 1 ,7 2 5

1 7 1 ,4 9 9

2 1 ,4 0 0

5 9 ,2 5 5

First Citizens B&TC, Rateigh, NC




B . „ h , CA

95

RTC R e s o h ttio n s Ja n u a ry 1, 1990 th ro u g h D ecem b er 31, 1990

(Dollars in thousands)
Date
of

Total
Name of Institution and Location

Type

Total

Assets

"Hi

Cost of

21-Sep

Great American S&LA, Oak Park, IL

PA

8 0 9 ,1 1 2

7 9 1 ,8 9 3

5 9 9 ,4 7 7

7 0 ,7 1 8

7 1 ,8 4 5

Branch Sale

28-Sep

Savings of TX Assoc., Jacksonville, TX

PO

7 1 ,6 5 5

9 6 ,8 8 9

8 7 ,6 9 0

4 ,8 4 2

5 6 ,5 6 8

None

28-Sep

Centra! SB, Jackson, MS

IDT

4 7 ,3 9 7

6 9 ,4 7 6

6 7 ,4 2 3

2 ,5 3 5

4 2 ,3 8 7

Bank of Forest, Forest, MS

28-Sep

First FS&LA, New Iberia, LA

IDT

5 0 ,0 3 7

5 8 ,7 5 6

5 7 ,4 6 5

6 ,3 9 4

1 3 ,6 0 3

Iberia SB, SSB, New Iberia, LA

28-Sep

United FS&LA, New Or!eans, LA

IDT

4 9 ,9 1 0

5 1 ,1 9 9

4 1 ,6 4 0

8 ,4 7 0

2 6 ,6 9 9

United B&TC, New Orleans, LA

28-Sep

Detta S&LA, FA, Kenner, LA

IDT

1 2 7 ,5 9 7

1 5 4 ,7 7 8

1 0 5 ,5 9 3

4 ,3 3 4

7 3 ,1 2 1

First State B&TC, Bogalusa, LA

28-Sep

Seasons FSB, Richmond, VA

PA

1 7 2 ,8 3 2

2 0 0 ,3 8 8

1 3 5 ,1 8 9

9 ,9 0 9

4 7 ,9 1 5

Crestar Bank, Richmond, VA

28-Sep

Banner Banc FS&LA, Garland, TX

IDT

4 1 ,0 0 5

5 4 ,4 3 2

5 3 ,0 4 9

5 ,6 0 8

1 9 ,7 1 8

Colonial S&LA, F ort W orth, TX

28-Sep

Metropolitan FS&LA, Denville, NJ

PA

1 4 9 ,4 4 2

1 5 6 ,3 2 4

1 5 5 ,2 2 5

3 5 ,2 6 5

1 2 ,7 9 3

Collective FSB, Egg Harbor, NJ

28-Sep

Security FSA, Richmond, VA

PA

2 8 6 ,3 1 5

3 1 4 ,7 3 5

1 8 6 ,3 2 3

2 7 ,8 2 0

4 1 ,1 2 4

Crestar Bank, Richmond, VA

28-Sep

Yorkridge-Calvert FSA, Baltimore, MD

IDT

4 8 9 ,7 5 6

5 1 2 ,7 6 6

3 0 7 ,0 6 3

4 8 ,4 2 0

4 3 ,9 4 6

Household Bank FSB,

28-Sep

Merabank FSB, Phoenix, AZ

28-Sep
^

k

f j l ^

T

X

^

PA

4 ,2 4 9 ,6 8 5

4 ,6 2 2 ,1 1 9

3 ,9 3 9 ,8 6 4

4 3 8 ,1 0 4

1 ,0 2 3 ,4 2 5

PO

2 1 6 ,9 5 7

3 4 9 ,2 6 9

2 6 3 ,1 8 8

1 4 ,2 6 5

2 1 6 ,1 6 8

PA

4 2 6 ,5 9 5

4 5 3 ,3 6 2

3 5 0 ,3 3 5

6 2 ,0 7 0

2 1 ,5 3 6

Bank of America, AZ, Phoenix, AZ
None

" '

28-Sep

Arlington Heights SA, FA,

Citibank FSB, Chicago, IL

28-Sep

Empire FSB, Buffalo, NY

PA

7 ,2 2 1 ,4 7 5

7 ,9 6 5 ,6 2 7

6 ,5 8 3 ,9 5 4

8 1 5 ,1 7 1

1 ,7 1 7 ,8 9 7

Branch Sale

0 5 -0 c t

Midwest SA, Minneapolis, MN

IDT

2 ,1 3 1 ,1 8 3

2 ,6 2 0 ,0 4 8

1 ,6 7 9 ,7 8 7

2 6 4 ,2 9 5

8 2 6 ,2 5 3

Branch Sale

0 5 -0 c t

First FS&LA of Central IN, Anderson, IN

PA

1 4 4 ,6 1 8

1 5 9 ,0 3 6

1 5 6 ,2 7 5

2 4 ,5 0 0

1 6 ,7 6 6

Shelby FSB, Indianapolis, IN

12-O ct

Golden Triangle S&LA, Bridge City, TX

PO

2 9 ,6 0 4

6 7 ,1 2 5

5 6 ,2 6 8

2 ,6 7 1

5 0 ,4 6 5

None

19-O ct

Fortune Financial FS&LA,

PO

6 1 ,9 5 7

7 1 ,6 8 0

6 6 ,0 6 7

4 ,2 5 2

2 7 ,4 4 7

None

19-O ct

Uvalde FS&LA, Uvalde, TX

PO

1 2 ,7 9 9

1 4 ,9 4 7

1 1 ,2 9 5

1 ,5 6 3

4 ,5 5 8

26-O ct

First State SB, FSB, Mountain Home, AR

IDT

8 1 ,0 3 6

9 9 ,9 0 5

9 9 ,7 8 7

1 4 ,1 7 1

5 2 ,7 2 7
638

None
W orther B&TC, NA, Little Rock, AR

26-O ct

Summit First FS&LA, Summit, IL

PA

5 1 ,9 2 5

5 1 ,8 1 3

4 6 ,4 4 9

6 ,0 4 7

26-O ct

Southeastern SA, Dayton, TX

PO

7 1 ,9 7 4

1 1 0 ,8 0 3

8 4 ,7 7 9

5 ,4 4 2

6 1 ,9 7 8

None

26-O ct

Southmost S&LA, Brownsville, TX

PO

8 6 ,2 2 1

1 2 4 ,9 0 7

9 4 ,3 1 0

9 ,8 4 8

5 5 ,8 1 7

None

02-N ov

Deep East T X SA, Jasper, TX

PA

3 9 ,8 1 2

5 2 ,2 5 5

5 1 ,4 3 2

3 ,3 4 1

1 8 ,4 2 7

02-N ov

Community FSB, East Moline, IL

PA

7 4 ,2 8 4

8 2 ,1 5 2

8 0 ,9 1 6

1 8 ,0 7 9

8 ,8 6 1

Branch Sale

02-N ov

First FS&LA of Fayetteville,

PA

8 3 ,7 2 5

1 0 9 ,6 2 4

8 6 ,5 4 5

1 3 ,3 1 6

3 2 ,9 7 1

Branch Sale

M arquette NB, Chicago, IL

Community Bank, Kirbyville, TX

Fayetteville, AR
02-N ov

First Standard SA, Fairmont, WV

PA

6 0 ,3 3 3

6 2 ,8 5 7

6 2 ,4 0 9

8 ,7 8 8

8 ,3 1 9

02-N ov

Central TX S&LA, W aco, TX

PA

1 4 5 ,9 1 9

2 0 2 ,1 5 8

1 4 7 ,1 1 4

1 0 ,7 5 3

1 0 4 ,0 4 7

Community B&T, NA, Fairm ont, WV
Kilgore FS&LA, Kilgore, TX

08-N ov

W estern Gulf S&LA, Bay City, TX

IDT

1 6 4 ,2 4 0

2 9 4 ,9 4 7

2 3 3 ,8 2 1

7 ,6 6 2

2 1 1 ,9 8 0

Victoria B&TC, Victoria, TX

09-N ov

Home FSB of W orcester, W orcester, MA

IDT

2 0 8 ,2 7 0

2 2 8 ,1 2 8

2 2 3 ,6 7 4

3 7 ,3 4 5

9 4 ,1 1 8

09-N ov

Home Savings FS&LA, Joliet, IL

PA

1 0 9 ,7 1 9

1 2 8 ,5 5 4

9 6 ,7 8 1

1 1 ,2 0 5

1 8 ,0 2 5

First Midwest Bank/IL, NA,

09-N ov

Colonial S&LA, Cape Girardeau, MO

PA

1 0 4 ,3 2 3

1 1 8,891

1 0 9 ,7 7 7

1 8 ,1 1 7

2 1 ,4 9 7

Branch Sale

^WorcSte^MA^ ^
Plainfield, IL

09-N ov

Grand Prairie FS&LA, Stuttgart, AR

PO

2 3 ,3 9 3

2 4 ,8 3 4

1 3,261

1 ,2 5 8

5 ,7 6 3

09-N ov

Bank USA, SA, Silvis, IL

IDT

2 1 ,1 7 2

1 9 ,4 8 3

1 9 ,3 3 4

2 ,3 9 0

0

09-N ov

First FSA of Bluefield, Bluefield, WV

PA

2 8 ,2 1 4

2 7 ,3 6 7

2 3 ,8 7 4

4 ,6 3 4

5 ,1 2 7

09-N ov

Valley Savings FS&LA, Hutchinson, KS

PA

1 3 2 ,7 9 0

1 8 0 ,8 1 2

1 2 6 ,3 8 0

1 1 ,5 6 7

8 9 ,2 0 8

16-Nov

Pioneer FS&LA, Marietta, OH

PO

9 ,2 5 4

7 ,4 9 0

6,421

1 ,1 4 6

340

16-Nov

Southwest FSA, Los Angeles, CA

PA

5 2 1 ,0 7 4

6 1 9 ,4 3 2

6 1 0 ,2 7 5

6 0 ,2 2 7

1 1 8 ,4 7 0

16-Nov

Nassau S&LA, Brooklyn, NY

PA

2 2 8 ,8 2 7

2 6 7 ,3 0 1

2 6 2 ,9 1 5

3 5 ,6 2 0

4 7 ,0 0 4

16-Nov

Fidelity FSA, Galesburg, IL

PA

2 6 3 ,9 8 5

3 1 1 ,1 6 6

2 9 4 ,6 8 2

5 7 ,2 0 2

5 7 ,8 9 7

16-Nov

Whitestone FS&LA, W hitestone, NY

PA

2 6 4 ,3 5 7

2 9 7 ,8 2 9

2 9 1 ,4 5 5

4 2 ,9 9 8

9 ,3 0 6

None
Metrobank, East Moline, IL
First FSB, Bluefield, WV
Branch Sale
None
Bank of America, San Francisco, CA
Staten Island SB, Staten Island, NY
First Bank, a SB, Clayton, MO
Astoria FS&LA, Jackson Heights, NY

16-Nov

Equitable FSB, Frem ont, NE

PA

1 5 2 ,8 1 9

1 7 4 ,6 9 6

1 4 8 ,2 0 0

2 9 ,1 3 2

3 0 ,9 1 0

Firstier Bank, NA, Omaha, NE

16-Nov

The Hiawatha FSA, Hiawatha, KS

PA

5 0 ,0 8 1

5 7 ,4 9 8

4 9 ,7 6 2

3 ,3 6 5

2 6 ,0 9 3

Morrill & James B&TC, Hiawatha, KS

16-Nov

New Athens FS&LA, New Athens, IL

PA

2 4 ,3 4 7

2 5 ,5 2 6

2 1 ,3 1 8

5 ,1 9 9

2 ,9 4 7

16-Nov

Resource SA, Denison, TX

PO

4 0 0 ,7 8 1

5 0 5 ,5 0 5

3 6 3 ,6 8 0

1 1 ,3 1 5

2 7 8 ,4 4 7

16-Nov

Brookside FS&LA, Los Angeles, CA

PO

4 7 2 ,7 4 5

4 8 3 ,7 6 4

4 4 4 ,1 8 8

1 5 ,5 1 4

6 2 ,8 8 2

16-Nov

Security FSB, Carlsbad, NM

IDT

2 5 ,0 4 4

3 2 ,9 4 6

2 9 ,6 2 9

2 ,8 5 7

9 ,7 0 5

29-N ov

Frontier FSB, Belleville, IL

PA

3 3 ,2 1 7

3 6 ,0 7 0

3 5 ,7 7 5

4 ,3 3 2

5 ,0 5 8

30-N ov

First American FSB, Santa F e, NM

PO

1 2 6 ,8 4 8

1 3 2 ,8 1 3

1 0 9 ,5 4 1

3 ,2 6 4

3 8 ,1 7 9

T jf Le^IL
None

W estern Com m erce Bank, Cartsbad, NM
East St. Louis, IL

96




^

None

None

RTC R e s o iu tio n s Ja n u a ry 1, 1990 th rou g h D ecem b er 31, 1990

(Dollars in thousands)
Date
Total

of
Type

Total

Assets

IE'

Cost of
Acquiring Institution and Location
St. Landry B&T Co., Opelousas, LA

9 ,9 7 0

4 8 ,6 2 2

8 3 5 ,3 5 1

3 3 ,5 6 7

3 9 7 ,2 5 5

1 0 5 ,2 1 5

3 ,8 8 0

4 7 ,6 5 5

1 2 ,0 5 5

1 0 ,4 0 4

2 ,0 4 7

3 ,4 7 8

None

3 8 ,2 3 2

3 3 ,9 0 0

3 ,5 6 6

3 ,1 4 9

Farm ers B&TC, Henderson, KY

30-N ov

First Louisiana FSB, FA, Lafayette, LA

IDT

6 0 ,5 2 7

8 6 ,1 0 4

8 4 ,1 4 0

30-N ov

Sun State S&LA, Phoenix, AZ

IDT

7 9 4 ,3 7 0

9 6 6 ,2 7 4

30-N ov

Madison Guaranty S&LA, M cCrory, AR

PA

9 1 ,3 0 8

1 2 2 ,4 5 7

30-N ov

Parish FS&LA. Denham Springs, LA

PO

1 0 ,9 6 7

PA

3 6 ,7 0 9

^ t n F r a l 't c ? '

30-N ov

Branch Sale

"H fjd e rso "U
30-N ov

Heritage FSB of Omaha, Omaha, NE

PA

1 3 9 ,4 9 3

1 4 6 ,9 6 2

1 3 0 ,0 7 9

2 0 ,5 5 7

2 4 ,4 6 8

Branch Sale

30-N ov

First SA of SE T X, Silsbee, TX

PA

4 0 ,8 2 8

4 6 ,2 5 0

3 1 ,1 2 9

4 ,0 5 7

1 7 ,8 1 6

Kilgore FS&LA, Kilgore, TX

30-N ov

Fide!ity FSA, Port Arthur, TX

PA

2 0 9 ,7 8 4

2 7 9 ,2 9 9

2 1 2 ,7 0 6

1 7 ,3 2 3

1 1 0 ,0 3 1

30-N ov

Midwest Home FSB, Belleville, IL

PA

6 8 ,8 5 1

8 3 ,9 8 6

6 8 ,8 0 9

1 5 ,5 1 7

2 1 ,5 5 0

UMB First NB, Collinsville, IL

30-N ov

St. Chartes FSA, St. Charles, IL

PA

7 9 ,8 4 3

9 2 ,4 0 3

8 5 ,7 6 8

1 4 ,5 2 4

1 2 ,2 3 6

Old Kent Bank, NA, Elmhurst, IL

0 7 -Dec

First FS&LA, Shreveport, LA

PO

1 5 0 ,7 0 6

2 1 4 ,6 2 9

1 5 9 ,6 9 4

1 6 ,7 1 7

1 3 5 ,4 3 6

None

0 7 -Dec

Vision Bank SA, Kingsville, TX

PO

5 8 ,1 9 5

1 0 2 ,9 8 6

9 0 ,2 3 8

3 ,6 8 2

6 3 ,5 2 4

None

Kilgore FS&LA, Kilgore, TX

07-D ec

Commonwealth S&LA, Osceola, AR

PA

2 6 ,1 6 1

3 5 ,5 9 4

2 9 ,4 5 1

6 ,8 6 2

1 3 ,2 2 7

Southbank FSB, Corinth, MS

0 7 -Dec

Deposit Trust SB, Monroe, LA

IDT

6 2 ,9 3 2

6 8 ,6 7 4

6 0 ,8 8 2

7 ,1 6 6

2 1 ,4 4 6

First Republic Bank, Rayville, LA

07-D ec

First America SB, FSB, F ort Smith, AR

PA

4 0 4 ,4 6 9

4 1 2 ,5 6 8

3 9 2 ,4 2 3

7 4 ,9 4 7

5 3 ,3 7 0

Branch Sale

07-D ec

Charter SB, FSB, Newport, CA

IDT

2 5 4 ,2 2 0

2 6 9 ,1 4 7

2 4 6 ,9 8 9

2 1 ,2 2 2

3 4 ,4 3 3

Pacific Heritage Bank, Torrance, CA

07-D ec

Terrebonne S&LA, Houma, LA

IDT

1 5 ,881

2 0 ,1 7 8

1 8,151

4 ,3 3 4

5 ,7 9 4

07-D ec

Haven S&LA, W inter Haven, F L

PA

1 3 0 ,8 4 5

1 5 3 ,2 0 2

1 2 5 ,2 8 5

1 5 ,7 8 7

3 2 ,6 1 6

0 7 -Dec

Karnes County FS&LA, Karnes City, TX

IDT

4 5 ,2 7 4

5 4 ,8 8 4

5 0 ,0 4 1

6 ,2 0 6

1 8 ,9 3 7

0 7 -D ec

Security FSA, Texarkana, TX

PO

2 5 1 ,6 1 3

5 9 7 ,2 2 3

4 6 4 ,9 9 0

2 0 ,6 7 6

4 6 8 ,2 2 8

None

13-D ec

United SB, FSB, Paterson, NJ

PO

2 1 3 ,6 6 8

2 1 2 ,7 2 8

1 8 3 ,4 8 2

3 2 ,3 6 4

2 4 ,5 2 3

None

14-D ec

Excel Banc SA, Laredo, TX

PO

1 1 8 ,6 2 1

1 3 9 ,7 3 0

1 2 3 ,2 4 2

6 ,6 2 3

6 3 ,7 8 8

14-D ec

Peoples FSA, Bartlesville, OK

IDT

8 1 ,2 1 4

8 0 ,7 8 1

7 8 ,7 8 2

7 ,9 0 8

8 ,3 4 1

14-D ec

Mississippi SB, FSB, Batesville, MS

PO

1 5 7 ,9 0 8

1 4 9 ,7 8 8

1 2 8 ,9 1 1

2 ,8 9 3

3 8 ,8 9 3

14-D ec

Frontier SA, Las Vegas, NV

* PA

2 5 9 ,0 0 7

2 5 1 ,2 3 3

2 4 6 ,6 2 3

1 8 ,7 0 0

0

14-D ec

Community FS&LA, St. Louis, MO

* PA

2 ,0 4 1 ,7 3 2

2 ,4 4 9 ,3 5 9

2 ,2 4 1 ,5 8 5

4 0 4 ,2 1 8

3 7 2 ,0 7 1

14-D ec

Great American S&LA, Corinth, MS

PO

9 8 ,2 7 3

1 0 1 ,9 8 6

10 1 ,2 3 1

3 ,5 5 8

1 6 ,2 0 5

None

14-D ec

First FSB of Kansas, Wellington, KS

IDT

1 1 1 ,1 7 8

1 6 0 ,2 4 4

1 2 5 ,8 5 9

2 0 ,8 5 1

7 4 ,8 5 9

Branch Sale

14-D ec

Hometown SB, FSB, Delphi, IN

PA

5 1 ,4 0 1

5 5 ,9 6 8

5 3 ,7 1 7

7 ,6 8 8

8 ,3 8 5

Branch Sale

15-D ec

Mid-America FS&LA, Columbus, OH

* PA

1 ,2 2 0 ,8 3 9

1 ,1 9 9 ,3 3 8

8 8 4 ,4 6 9

9 9 ,5 0 8

3 9 ,1 4 8

NBD Bank, Columbus, OH

* PA

4 4 7 ,2 7 0

4 9 0 ,9 6 8

3 2 1 ,1 3 7

3 4 ,8 1 1

5 5 ,0 0 0

United FB, Galesburg, IL

$ 1 0 6 ,2 0 0 ,9 8 8

$ 1 2 0 ,8 7 7 ,5 6 7

$ 9 3 ,3 6 2 ,2 2 1

10 ,2 1 3 ,5 2 6

$ 3 1 ,4 5 5 ,2 9 3

The St. Mary B&TC, Franklin, LA
^ a k e la n ^ F ^ "^

27-D ec
TOTALS

3 1 5 Institutions




Victoria B&TC, Victoria, TX

None
W estStar Bank NA, Bartlesville, OK
None
Bank of America, NV, Reno, NV
Boatman's NB, St. Louis, MO

97

RTC R e so tv ed C o n s e rv a to rs h ip s August 1989 th rou gh D ecem b er 31, 1990

(Dollars in thousands)
of

In C on serv ato rsh ip as o f 8 / 9 / 8 9

of
Assets

LiabH ities

D eposits

262

$ 1 1 4 ,3 2 2 ,6 2 7

$ 1 2 0 ,7 8 8 ,2 3 9

$ 9 1 ,7 2 1 ,9 5 7

8 , 7 8 7 ,0 9 2

A dded in 1 9 8 9

56

2 5 ,8 7 2 ,9 2 8

2 5 ,7 7 4 ,1 1 5

1 9 7 7 4 ,6 4 4

2 ,2 3 0 ,4 2 5

R esolved

37

1 3 ,7 3 0 ,7 3 7

1 4 ,4 5 9 ,3 5 6

11 3 0 8 ,2 8 1

1 , 1 5 9 ,3 8 7

In C on serv ato rsh ip as o f 1 2 / 3 1 / 8 9

281

1 2 6 ,4 6 4 ,8 1 8

1 3 2 ,1 0 2 ,9 9 8

1 0 0 .1 8 8 ,3 2 0

9 ,8 5 8 ,1 3 0

A dded in 1 9 9 0

207

1 2 9 ,7 7 8 ,4 9 0

1 2 8 ,8 8 9 ,9 3 4

9 4 ,8 2 6 ,4 2 4

9 , 2 1 8 ,7 6 3

R esolved in 1 9 9 0

309

1 3 4 ,5 2 1 ,9 0 1

1 3 8 ,5 8 0 ,0 7 0

1 0 5 ,3 2 9 ,3 8 3

1 1 ,1 5 5 ,2 3 7

In C onserv ato rsh ip as o f 1 2 / 3 1 / 9 0

179

$ 1 2 1 ,7 2 1 ,4 0 7

$ 1 2 2 ,4 1 2 ,8 6 2

$ 8 9 ,6 8 5 ,3 6 1

7 , 9 0 8 ,3 8 7

6

$ 4 ,0 0 0 ,2 0 7

$ 4 ,4 2 1 ,6 6 9

$ 3 , 7 2 4 ,2 9 6

5 6 0 ,4 1 1

93










Accelerated Resolution
Program
Affordable Housing
Disposition Program

31, 38
4, 6, 10,
15-16, 48,
60, 75

Asset and Real Estate
M anagement Division

10-17

Federal Asset
Disposition Association

48

Federal Deposit Insurance
Corporation
iv, vi-viii,
20, 22, 25-30,
40, 67, 74
Federal Savings and Loan
Insurance Corporation
Finance and
Adm inistration Division

Budget, Office of

51-55

B

Capital Markets

5, 45-44

Clarke, Robert L.

v, vi, viii

Comptroller General
of the United States

Conservatorships 11, 14, 18-26,
34-57, 70-71, 75
16-17,50-51,60

Cooke, David C. viii, 5-7, 51, 53
Corporate Communications,
Office of
51
Corporate Inform ation,
Office of

n

Directors

Executive Secretary,
Office of the

45-46

Financial Institutions
Reform, Recovery, and
Enforcem ent Act
iii, vii-viii,
10-12, 15,
27, 67, 75
Funding

23-24, 67-68

78-85

Comptroller of the Currency,
Office of the
vi,
viii, 30

Contracting

vii,
7, 67

56-57

iv-vi, viii

54-56

Hope, C.C., Jr.

v-vi, viii

Hove, Andrew C., Jr.

iv-v, viii

B
B

Investigations

18, 24-51

Legal Branch

47-48, 65

Legislative Affairs, Office of

55

M inority and
Women Outreach

4, 16, 48

Minority-Owned
Thrift Resolutions

55, 58, 42

Statistical Tables
National Sales Center

5,12

a

Office of Thrift
Supervision

v-viii, 4, 27-31,
38-39, 67, 73

B

Program Analysis, Office of

53

R
Receiverships

10-14,21-25,
70-71, 73

Regulations 1990

59-61

Research and Statistics,
Office of

50-51

Resolution Trust Corporation
Financial Statements
63 77
Organization Chart
viii
Oversight Board
viii, 11,
15-16, 45,
67-68, 73
Resolutions

11, 18-19, 24, 31-42

Resolutions and Operations
18-42
Division
Ryan, Tim othy

v-vi, viii

S
Securitization

3, 5-6, 15, 44

Seidman, L. W illiam
Standard Asset
M anagement and
Disposition Agreement




iii-v, viii,
2-4, 53

4 ,6 ,
11-12, 47

RTC Conservatorships
January 1, 1990 December 31, 1990

86

New RTC Conservatorships
January 1, 1990 December 31, 1990
87-90
RTC Resolutions
January 1, 1990 December 31, 1990

91-97

RTC Resolved
Conservatorships
August 1989 December 31, 1990

98




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W a sh in g to n , DC 2 0 4 3 4 0 0 0 1
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C h ie f
R e p o rts an d A n aly sis B ra n c h
M a r jo r ie C B r a d s h a w

Design and Printing Coordinator
G eoffrey L W ade
Art Director
G eri B o n eb rak e
Designer
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Typography
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