Financial Institutions Reform, Recovery, and Enforcement Act of 1989

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

Federal legislation that revamped regulation and insurance of depository financial institutions in response to the savings and loan crisis. The Act created several new organizations, including the Resolution Trust Corporation that closed and merged troubled institutions and the Bank Insurance Fund that replaced the Federal Savings and Loan Insurance Corporation as the insurer of thrift deposits.

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