The Resolution Trust Corporation (RTC) was created in 1989 as part of the Financial Institutions Reform, Recovery, and Enforcement Act to manage, sell, and liquidate bankrupt SAVINGS AND LOAN ASSOCIATIONS (S&Ls;). The RTC seized the ASSETS of 750 S&Ls;, one-fourth of all the savings and loan organizations in the country. In doing so, it resolved the savings and loan crisis that had begun in the early 1980s. Historically, most S&Ls; were mutual associations aggregating funds from members—often people from one community, ethnic group or working in one industry—and then lending the funds to members. They primarily made fixed-interest-rate LOANS to individuals purchasing homes. Changes in banking laws during the GREAT DEPRESSION allowed S&Ls; to pay a slightly higher interest rate to depositors than commercial banks were allowed to pay. For decades they followed what was known as the “3-6-3 rule”: pay depositors 3 percent, lend to borrowers at 6 percent, and play golf at 3 P.M. However, in the early 1980s, with high rates of INFLATION (then exceeding 10 percent) and government-restricted rates on deposits, at the time around 5 percent, S&L; depositors were losing purchasing power of their savings and so began looking for alternative places to deposit their savings. In addition, the value of S&L; assets—specifically home MORTGAGEs—was declining in value. During periods of inflation, INTEREST RATES rise, decreasing the value of fixed-INCOME securities, mortgages, and BONDS. Initial government attempts to address the S&L; crisis included DEREGULATION of the industry (Depository Institutions Deregulation and Monetary Control Act, 1980) and granting greater authority to S&Ls; to invest in alternatives to home mortgages (Depository Institutions Act, 1982). To many observers, these legislative initiatives appeared to be using Band-Aids to try to stop a hemorrhage, and many S&L; industry members took an attitude of “when this crisis gets big enough, the government will step in and resolve it.” The RTC, using funds from government-backed bonds, increased INSURANCE premiums to S&Ls;, and assessments to the FEDERAL HOME LOAN BANK SYSTEM reorganized insolvent S&Ls.; Most insolvent thrifts were sold to solvent banks and thrift institutions, and the RTC transferred deposits and assets to the purchasing institution at a discount. Critics noted that most failed S&Ls; were sold to already large lending institutions, hastening the consolidation of the banking industry at terms attractive to existing institutions. Primarily using taxpayer funds, the RTC sold off the insolvent institutions and went out of business at the end of 1995. The estimated cost of the S&L; bailout to U.S. taxpayers differs, depending on how COSTS are estimated. Conservative estimates state the cost at $150 billion, while others estimate it at over $500 billion.