Where’s the Resolution Trust Corporation?
Wednesday, September 30th, 2009I admit it. I’m just a student. A simpleton. It wasn’t so long ago that I was walking along a road called Keating to go to Dobson High School in Mesa, Arizona. That’s right. The road was named after Charles Keating who built not only the neighborhood but engineered the savings and loan crisis of the late 1980s in the process.
I was a teenager when all that was taking place, so all I remember was that the neighbors wanted to change the name of the road and some people in Washington D.C. created something called the Resolution Trust Corporation.
I asked the question in class today: where’s the RTC now? What don’t we have the RTC II? The only answer I really got was, “this problem is too big.” How can that be? If the problem is 10 times bigger, is that too big? What about 100 times? Didn’t the RTC ultimately make money? If the FDIC is essentially sitting on tens of billions of dollars in failed bank assets, isn’t the FDIC the new RTC?
I’m confused.
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