| Article ID: | iaor1994802 |
| Country: | United States |
| Volume: | 5 |
| Issue: | 3 |
| Start Page Number: | 627 |
| End Page Number: | 649 |
| Publication Date: | Jul 1993 |
| Journal: | Public Budgeting and Financial Management |
| Authors: | Gatti James F., Spahr Ronald W. |
| Keywords: | management, economics, finance & banking, government |
This paper compares and evaluates the resolution technique used by the Federal Savings and Loan Insurance Corporation (FSLIC), before Financial Institutions Reform, Recover, and Enforcement Act (FIRREA) with those currently used by the Resolution Trust Corporation (RTC). It is demonstrated analytically that the resolution methods used by the FSLIC are similar to those currently used by the RTC; however, it is argued that the FSLIC financial assistance plan may be less costly than the current RTC purchase and assumption method.