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 groups noted that the federal regulatory structure for real estate appraisal essentially has been untouched since enactment of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, and that the most recent congressional committee hearing devoted to appraisal oversight was four years ago.

Al joins groups asking Congress to address appraisal regulation

Reforms followed, among them the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), and the Crime Control Act of 1990.

Regulation: a help or hindrance to business growth?

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.

Statement by Oliver Ireland, Associate General Counsel, Board of Governors of the Federal Reserve System, before the Subcommittee on Commercial and Administrative Law, Committee on the Judiciary, U.S. House of Representatives, March 18, 1999

FIRREA is the Financial Institutions Reform, Recovery and Enforcement Act of 1989, under Title XI of federal law.

Report finds banks returning to lax appraisal policies

After legislating major changes affecting savings institutions in the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), Congress focused on the potential for similar costly use of taxpayers' money to pay insured depositors of banks.

The FDIC Improvement Act: a precedent for expanded CPA reporting?

The deal represents a significant step by the RTC (which is charged with disposing of $100 billion in savings and loans assets), toward providing business opportunities for minority-owned companies, a procedure mandated by the Financial Institutions Reform, Recovery and Enforcement Act of 1989. (See "The World's Biggest Fire Sale," June 1991.) PMC's swift, successful handling of the offering may serve as a catalyst to get more minority firms into the mortgage-backed securities market--the nation's second largest capital market.

PMC leads $200 million deal

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.

CMO residuals: the last can be first

(1.) The Financial Institutions Reform, Recovery and Enforcement Act of 1989 contains the 1989 amendments to HMDA; the Federal Deposit Insurance Corporation Improvement Act of 1991 contains the 1991 amendments.

Residential lending to low-income and minority families: evidence from the 1992 HMDA data

The Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) was enacted in response to significant economic problems suffered by banks and thrifts.

A threat to business valuation practices; new laws at the state and federal levels could prevent CPAs from offering some services

Expanded data collection was required pursuant to amendments to HMDA in the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA).

Statement by Lawrence B. Lindsey, Member, Board of Governors of the Federal Reserve System, before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, November 4, 1993

The Financial Institutions Reform, Recovery and Enforcement Act of 1989, combined with the FDIC'S decline in resources, has created a shift in regulators' priorities.

Managing risk in audits of financial institutions; how CPAs can identify high-risk areas in savings and loan audits