Ex ante risk and ex post collapse of S&Ls in the 1980s
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.
