Financial Institutions Reform, Recovery and Enforcement Act of 1989

(redirected from Financial Institutions Reform, Recovery, and Enforcement Act)
Also found in: Wikipedia.

Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA)

Legislation that established the Office of Thrift Supervision, which was created in the wake of the savings and loan crisis of the late 1980s.

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.
References in periodicals archive ?
The act allows for the appraisal requirements of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act and the agencies' appraisal regulations to be waived for up to thirty-six months when the President of the United States determines that a major disaster exists and the agencies determine that such waiver would both facilitate recovery in the disaster area and be consistent with safety and soundness.
The act was part of a process that began with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and included the tightening of bank supervision in 1989, 1990 and 1991.
The RTC was created under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) to manage and sell properties that are taken over by the United States government as a result of bank defaults.
In the absence of a settlement, the United States intended to prosecute its action against STD under the civil penalty provisions of Section 951 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ("FIRREA").
The remedy for such regulatory haplessness was the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, which dissolved the Federal Home Loan Banks and erected in their place the powerful OTS to supervise the remaining thrifts.
Capital requirements are increasing, partly because of the increments in tangible and risk-based capital called for under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA, or the Bush Plan), and partly because of the new core capital requirements under which most savings and loans will have to show a core capital ratio of between 4 and 5 percent of assets (as against the former 3 percent).
The Board instituted this effort to meet the requirements of section 1002 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).
In the absence of a settlement, the United States intended to prosecute its action against Continental under the civil penalty provisions of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).
This article describes the circumstances of the thrift industry and the FSLIC in the late 1980s, discusses relevant provisions of the recent thrift bailout legislation-the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA)-and shows how that legislation established a complex and politically sensitive mechanism governing future payment of FSLIC obligations.
Another important initiative is the agencies' proposal to increase from $100,000 to $250,000 the threshold amount below which real estate-related loans - including loans to businesses that are collateralized by property - do not require appraisals under Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
In the absence of a settlement, the United States intended to bring an action against Najem under the civil penalty provisions of Section 951 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ("FIRREA").
Federal regulatory agencies have recently adopted a series of rules which ignore the intent of Title XI of the Federal Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)," said Marshall.
Full browser ?