Savings and Loans Bailout

Congress created Resolution Trust Corp in 1989 to dispose off the bad assets from the books of financial institutions during the peak of S&L crisis. The agency closed or bailed out 747 institutions holding assets of nearly $400b. It did so by seizing the assets of troubled savings and loans, and then reselling them to investors at a bargain price. By 1995, S&L crisis has abated and Resolution Trust Corp has been folded into FDIC.