Annual Report of the Resolution Trust Corporation
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Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis THE Research Library Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis October 15,1991 Resohntioa Trust Corporation 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis L. S e id m a n f . HOVC, /# . L. William Seidman was elected Andrew C. Hove, Jr., was ap Chairman of the Federal Deposit pointed Vice Chairman of the Insurance Corporation on Octo FDIC Board of Directors on July ber 21, 1985. Prior to his FDIC 23, 1990. He brought to the posi appointment, Mr. Seidman spent tion three decades of banking Board o/* D irectors many years in the financial field, experience. During his 30 years holding positions in both the with the Minden Exchange Bank public and private sectors. He & Trust Company in Minden, served as Dean of the College of Nebraska, he rose to the ranks of Business of Arizona State Univer Chairman and Chief Executive sity and a director of several orga Officer. Mr. Hove also served as a nizations, including the Phelps President of the Nebraska Bank Dodge Corporation, Prudential- ers Association, and held various Bache Funds, United Bancorp of other leadership roles within the Arizona, and The Conference association. At the American Board. He was Co-chairman of Bankers Association, Mr. Hove the White House Conference on served as a delegate to the ABA Productivity, Vice Chairman of Leadership Conference, a bank the Phelps Dodge Corporation, ing advisor, and Vice President Assistant to President Gerald representing Nebraska. He is a Ford for Economic Affairs, and former President of the Nebraska Managing Partner of Seidman & Electronic Transfer System and Seidman, Certified Public the Kansas/Nebraska Schools of Accountants, New York. Other Banking. Mr. Hove has held prior positions include Chair several civic posts and has been man and Director of the Federal active in local government, hold Reserve Bank of Chicago, Detroit ing such positions as Treasurer Branch. Mr. Seidman received and Mayor of the city of Minden. an A.B. degree from Dartmouth He earned a B.S. degree from the College and earned an LL.B. from University of Nebraska-Lincoln, Harvard Law School. He also and is a graduate of the University holds an M.B.A. from the Univer of Wisconsin-Madison Graduate sity of Michigan. Mr. Seidman is School of Banking, a a member 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 Digitized for FRASERiv http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis C.C.Hope,/r. R o& er? L. C.C. Hope, Jr., was appointed to Robert L. Clarke was sworn in as Timothy Ryan was appointed the FDIC Board of Directors on Comptroller of the Currency on Director of the Office of Thrift March 10, 1986, following an December 2, 1985. At the same Supervision on April 9, 1990, extensive career in banking. time, he became a member of following his nomination by Mr. Hope spent 58 years at First the FDIC's Board of Directors. President George Bush and con Union National Bank of North Prior to these appointments, Mr. firmation by the U.S. Senate for Carolina in Charlotte, retiring as Clarke headed the banking sec a five-year term. Prior to his Vice Chairman in 1985. He is a tion at Bracewell & Patterson, a appointment, Mr. Ryan was a former President of the Ameri law firm in Houston, Texas, partner and member of the exec can Bankers Association and has which he joined in 1968. The utive committee of the law firm served as Secretary of the North banking section, founded by Mr. of Reed Smith Shaw and McClay. Carolina Department of Com Clarke, prepared corporate appli While with the firm, he special merce. Mr. Hope has also held cations and securities registra ized in labor and employment several positions in the educa tions, counseled management in relations. From 1981 to 1985, he tional field, currently serving as expansion opportunities and the served as Solicitor of Labor at the a trustee on the Board of Wake effects of deregulatory initiatives, U.S. Department of Labor. Mr. Forest University, which he for and represented institutions in Ryan received a bachelor's merly chaired. He also served as enforcement matters. Mr. Clarke degree from Villanova University Dean of the Southwestern Gradu is a member of the Texas and and a Juris Doctor from The ate School of Banking at Southern New Mexico bars. He has served American University's Washing Methodist University. Mr. Hope as a director for two state banks ton College of Law. n holds a B.A. in Business Adminis and has been active in several tration from Wake Forest Univer civic, political, and professional sity and has completed graduate organizations. Mr. Clarke received work at the Harvard Business a B.A. in Economics from Rice Uni School and The Stonier Graduate versity and an LL.B. from Harvard School of Banking at Rutgers Law School. * University. H Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis As an increasing number of value return from the sale or savings and loan associations other disposition of savings headed toward insolvency dur associations and their assets; ing the 1980s, President Bush minimize the impact of such initiated a restructuring plan transactions on local real estate for the thrift industry to thwart and financial markets; minimize its collapse. As part of the plan, the amount of any loss realized in in February 1989 the Federal the resolution of these insolven Deposit Insurance Corporation cies; and maximize the availability (FDIC) was tasked with leading and affordability of residential a large-scale interagency effort real property for low- and moder- to evaluate and manage the oper ate-income individuals. ations of insolvent savings and loans, containing losses and During 1990, the RTC took con maintaining services to deposi trol of 207 savings and loans tors, until Congress authorized determined to be insolvent by reform of the savings associations' the Office of Thrift Supervision regulatory and deposit insurance (OTS). While the institutions system. Joining the FDIC in this were under the RTC's control, effort were the Federal Savings the RTC took steps to preserve and Loan Insurance Corporation basic services to customers, eval (FSLIC), the Federal Home Loan uate the thrifts' financial condi Bank Board, the Federal Reserve tions, reduce costs, identify and Board, and the Office of the stop any fraud or abuse, and Comptroller of the Currency. prepare the institutions for resolution. At yearend, the RTC On August 9, 1989, Congress had closed or sold 315 insolvent passed the Financial Institutions savings institutions and achieved Reform, Recovery, and Enforce asset sales and collections of $128 ment Act (FIRREA), establishing billion from the failed thrifts. the Resolution Trust Corporation (RTC) to solve the crisis in the The RTC operates from its head thrift industry. To this end, quarters in Washington, D.C., the RTC must contain, manage, and four regional offices based in and "resolve" failed savings asso Atlanta, Georgia; Dallas, Texas; ciations that were insured by the Denver, Colorado; and Overland FSLIC before FIRREAs enactment Park, Kansas. Reporting to the and for which a conservator or regional offices are 14 consoli receiver is appointed between dated offices and 14 sales centers, January 1, 1989, and August 9, 1992. established at the national, regional, and local levels to facili As part of its mission, the RTC tate the sale of real estate, financial must maximize the net present instruments, and other assets. v ii Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Serving as manager of the RTC FIRRE A also established the is the FDIC. Executive Director RTC Oversight Board to formu David C. Cooke oversees the late policy, approve funding, RTC's day-to-day operations. and provide general oversight The RTC's Board of Directors, of the RTC. The act specified which also serves as FDIC's five members to serve on the Board, is chaired by L. William Board: the Secretary of the Seidman. Other members of Treasury, who chairs the Board; the Board in 1990 included the Secretary of Housing and Andrew C. Hove, Jr.; C.C. Hope, Urban Development; the Chair Jr; Comptroller of the Currency man of the Federal Reserve Robert L. Clarke; and Timothy Board; and two public members Ryan, Director of the Office of named by the Senate, n Y Thrift Supervision. 1990 Orgamzattow Chart Resohntion Trust Corporation Washington Office Structure Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St.