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FIRREA

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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.



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Furthermore, it establishes a federal appraisal independence standard with significant monetary penalties for violations and it modernizes provisions of Title XI of FIRREA to provide additional resources for state enforcement and greater accountability of federal and state appraisal regulators.
FIRREA also included: $50 billion of new borrowing authority; net worth requirements and regulation by the OTS and FDIC; and allocation funds to the U.
While not required to do so by FIRREA, the Board of Governors of the Federal Reserve System (Federal Reserve) and Office of the Comptroller of the Currency (OCC) have established some minority bank support efforts.
 
 
 
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