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RESOLUTION TRUST CREATED BY CONGRESS

Resolution Trust Corp. is the federal agency created by Congress last August to take control of insolvent banking institutions and clean up the mess in the industry.

It is controlled by the Federal Deposit Insurance Corp., which is the federal agency that insures deposits in banks and savings and loan associations.

L. William Seidman is chairman of both the FDIC and of Resolution Trust Corp.

Congress allocated $50 billion to Resolution Trust when it was formed. So far, Resolution Trust, with a staff of 1,900, has taken over 333 institutions and has enough money to take over perhaps 100 more.

But Seidman told the House Banking Committee Wednesday that a minimum of 225 more institutions will be seized, and that his agency will need another $45 billion to $50 billion this year.

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