FSLIC


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Federal Savings and Loan Association

A federally chartered bank that specializes in taking deposits for checking and savings accounts, as well as making home mortgages. Savings and loan associations tend to be smaller than other banks and are more focused on the local communities in which they operate. It is sometimes (but not always) easier to obtain a loan from a savings and loan association because it may have better knowledge of the local market. They derive most of their funds from customer savings accounts, but they also generally have easy access to loans from the Federal Home Mortgage Banks. They are also known as thrifts. They are regulated by the Office of Thrift Supervision.

FSLIC

See Federal Savings and Loan Insurance Corporation.
References in periodicals archive ?
Until 1989, S&Ls were regulated by the FHLBB and insured by the FSLIC within a legislative and historical framework separate from the one that surrounded commercial banks.
Combined with FSLIC insurance this encouraged risky real-estate investments whose values declined in the late 1980s.
Therefore, when the RTC, FDIC, or FSLIC filed an action against the D&Os of a failed thrift, D&O insurers often denied coverage for the claims under the regulatory exclusion.
In addition to creating the FHA and the FSLIC, the National Housing Act of 1934 authorized the creation of national mortgage associations, which were intended to be federally chartered private organization that bought and sold qualifying first mortgages.
As has been already illustrated, there are many examples where conflicts arise from agency problems, such as the case where the FSLIC used the provision of tax benefits to induce acquirers to take over failed S&Ls.
When the number and size of bank failures picked up in the late 1980s and losses to the FDIC mounted, there was widespread fear that the banks would go the way of the S&Ls and the FDIC the way of the FSLIC.
What kept insolvent S&Ls from being closed down by depositor runs was the willingness of the FSLIC to promise depositors credible protection against loss.
Rather than maximizing recoveries for FSLIC, FADA had wasted FSLIC funds .
If the project failed, it was the FSLIC, not the S&L, that took the hit.
Additionally, the FSLIC was replaced by the Savings Association Insurance Fund, administered by the Federal Deposit Insurance Corporation (FDIC).
In 1985, the FSLIC and the Federal Home Loan Bank Board (FHLBB) also started the Management Consignment Program.
Rom acknowledges congressional delay in recapitalizing FSLIC but attributes it to the understandable concern of congressmen to delay proposals until their local concerns were heard.