Ex ante risk and ex post collapse of S&Ls in the 1980s
Elijah Brewer III , Thomas S. Mondschean
Since 1980, the Federal Savings and Loan Insurance Corporation (FSLIC) and its successor, the Resolution Trust Corporation (RTC), have recognized losses of over $125 billion. Between 1980 and 1989 the FSLIC spent approximately $55 billion resolving—that is, liquidating or merging into healthy institutions-546 failed thrift institutions (savings and loan associations and savings banks) with combined total assets of $192.7 billion. Between August 1989 and February 1992 the RTC resolved another 602 insolvent thrifts with assets of $186.1 billion.
