Financial Institutions Reform, Recovery and Enforcement Act


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Financial Institutions Reform, Recovery and Enforcement Act (FIRREA)

(pronounced “fie-ree-ah”) Federal legislation passed in 1989 in response to the banking and savings and loan crisis, the FDIC bailout, and the bankruptcy of the Federal Savings and Loan Insurance Corporation (FSLIC). It reorganized much of the oversight and regulatory framework for financial institutions and created the Resolution Trust Corporation (now defunct) to receive and liquidate assets from failed financial institutions.

References in periodicals archive ?
The Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) is a rarely used statute designed to protect federally insured financial institutions from mail, wire, and other fraud and from insider violations through civil action.
The Justice Department has also filed charges of violations of Financial Institutions Reform, Recovery and Enforcement Act against the Delaware bank.
Reforms followed, among them the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), and the Crime Control Act of 1990.
Similarly, in 1989 in establishing the manner of the conduct of the receivership of insured depository institutions under federal law, the Financial Institutions Reform, Recovery and Enforcement Act of 1989 provided for the termination, or closeout, and netting of qualified financial contracts, including securities, commodity and forward contracts, and repurchase and swap agreements.
August 1989: Congress passes the Financial Institutions Reform, Recovery and Enforcement Act.
It was left unscathed by the S&L crisis, although a large proportion of S&Ls struggled and died in 1989, unable to meet the tough new capital requirements of the Financial Institutions Reform, Recovery and Enforcement Act.
FIRREA is the Financial Institutions Reform, Recovery and Enforcement Act of 1989, under Title XI of federal law.
It passed the Financial Institutions Reform, Recovery and Enforcement Act, which closed insolvent institutions and repaid depositors, radically reordered the industry's regulatory structure, and officially confirmed that taxpayers would foot the bill.
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.
However, under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), institutions were required to phase out goodwill from tangible capital calculations over five years, ending in 1994.
The Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) mandates that all thrifts divest themselves of their investments in CMO residuals, as well as certain other direct real estate investments, by 1994.
5 million in damages to the Bank in connection with a lawsuit it filed in 1995 claiming the federal government breached its contract with the Bank upon the enactment of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 ("FIRREA").
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