Resolution Funding Corporation - REFCORP

View more Business & Finance videos

A mixed-ownership government corporation established by Congress in 1989 in conjunction with the Resolution Trust Corporation (RTC). The two corporations were established to rescue savings and loan (S&L) institutions that failed during the savings and loan crisis. REFCORP provided liquidity to these organizations by issuing bonds.

Investopedia Says:
The S&L crisis began in the late 1970s and lasted through the early 1990s. S&Ls engaged in risky activities, such as commercial real estate lending and investing in junk bonds, because their deposits were insured by the Federal Savings and Loan Insurance Corporation (FSLIC). The FSLIC eventually became insolvent, and the government spent over $124 billion in taxpayer dollars and liquidated 747 insolvent S&Ls to end the crisis.

Related Links:
The economic environment of the late 1970s and early 1980s created the perfect storm for a banking crisis. From Booms To Bailouts: The Banking Crisis Of The 1980s
U.S. bailouts date all the way back to 1792. Learn how the biggest ones affected the economy. Top 6 U.S. Government Financial Bailouts
Though the U.S. government can help its citizens by subsidizing risky loans, the costs always come back to the taxpayers. The Government And Risk: A Love-Hate Relationship
If you don't know how the recession began, read on to learn more. The 2007-08 Financial Crisis In Review
This American icon almost went under, but the U.S. government refused to let it fail. Chrysler And The 1979 Bailout
The subprime meltdown gave rise to a mouthful of financial acronyms. Learn how to sort through this alphabet soup. Bailout Acronyms 101