The RTC to rise again?

By Geert De Lombaerde Posted on September 9, 2009 at 8:11 am

Investment Dealers’ Digest says banking regulators are seriously considering creating a bad-asset management entity modeled on the Resolution Trust Corp. from 20 years ago.

“They are very, very keen to ensure it does not repeat itself,” says the industry participant who attended meetings with the FDIC about the RTC. “My guess is they’ll have the spirit of the PPIP investment plan where the investors share both upside and downside with the U.S. government.”

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Tags: credit, distressed assets, Federal Deposit Insurance Corp., financial institutions, financial regulation, loan losses, Resolution Trust Corp., special assets  

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