Failed Thrifts:

The Resolution Trust Corporation's Working Capital Needs

T-GGD-90-7: Published: Oct 31, 1989. Publicly Released: Oct 31, 1989.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed financing for the Resolution Trust Corporation (RTC), focusing on: (1) RTC need for working capital and alternative approaches to raising it; and (2) proposed legislation that would limit the borrowing authority of RTC and other federal agencies. GAO noted that: (1) RTC needs working capital to resolve failed thrift institutions because the cost of resolution will greatly exceed the value of thrift assets; (2) without working capital the pace of RTC resolutions will be dictated by the speed with which RTC can liquify its acquired assets; (3) the least costly form of financing for RTC would be direct Treasury borrowing, which would also fully reflect the impact of RTC activities on the federal budget deficit; (4) creating an off-budget entity to hold assets as collateral for RTC borrowing would be far more costly and would violate the integrity of the budget process; and (5) proposed legislation to limit the borrowing authority of RTC and other agencies would severely hamper RTC ability to fulfill its difficult mission.

Sep 29, 2017

Sep 12, 2017

Sep 7, 2017

Apr 19, 2017

Mar 29, 2017

Feb 24, 2017

Dec 29, 2016

Dec 15, 2016

Nov 15, 2016

Looking for more? Browse all our products here