FIRREA


Also found in: Acronyms, Wikipedia.

FIRREA

Financial Institutions Reform, Recovery and Enforcement Act of 1989

Legislation in the United States passed in response to the savings and loan crisis. The FIRREA created the Resolution Trust Corporation, which was charged with closing thrifts declared to be insolvent. It also created new funds within the FDIC to administer the depositor's insurance to account holders at insolvent institutions. Importantly, it created the Office of Thrift Supervision, a bureau of the U.S. Department of the Treasury to regulate federal savings associations, savings and loan associations (thrifts), and some holding companies. The OTS both provides charters and creates regulations for thrifts and other institutions that fall under its supervision. Additionally, it audits the practices of financial institutions that specialize in personal savings and mortgage loans to ensure that they comply with applicable regulations.

FIRREA

FIRREA

See Financial Institutions Reform,Recovery and Enforcement Act.

References in periodicals archive ?
Congress passed FIRREA (122) in the wake of the widespread savings
79 (1994) (not specifically addressing the question as to [section] 1823(e), but holding that that FIRREA is a comprehensive statutory scheme); Murphy v.
If the courts determine FIRREA applies to credit unions, that's very relevant," he said.
These FAQs provide interpretation and clarification of FIRREA, but no new requirements.
FIRREA allows the FDIC Board to set the coverage ratio as high as $1.
Another institution created by FIRREA is the Resolution Trust Corporation (RTC).
Since the passage of FIRREA, closure of failed S&Ls has reduced the total portfolio of the industry by over $175 billion, and their share of the market is now under 20 percent.
The FDIC argued that, under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), a five-year breach of contract statute applied to this matter and that FIRREA, although passed in September 1989, should apply retroactively.
The federal insurance corporations -- the Federal Savings and Loan Insurance Corporation (FSLIC) before the signing of the Federal Institutions Reform, Recovery, and Enforcement Act (FIRREA) and the Federal Deposit Insurance Corporation (FDIC) via the Resolution Trust Corporation (RTC) following the enactment of the FIRREA -- were delegated the responsibility for disposing of insolvent institutions in the most cost effective manner.
FIRREA mandates that certain steps be taken to maintain an enforceable security interest in collateral pledged to secure deposits against the receiver of a failed financial institution.
The critique of FIRREA stresses the failure of this law to truly address the condition of the banks or the BIF and its failure to meaningfully address deposit insurance reform.
Duca(1) showed that the effect of the passage of FIRREA and the Resolution Trust Corporation's (RTC's) methodology for closing insolvent institutions reduced the demand for M2.