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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government under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 for covered activities.
Rowlett, The Chilling Effect of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and the Bank Fraud Prosecution Act of 1990: Has Congress Gone Too Far?, 20 Am.
Although both funds remain below the peak reserve-to-deposit ratios posted at the end of the 1990s, they continue to exceed the 1.25% target set by Congress in the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
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.
In response to those failures, regulatory changes mandated by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and the Federal Deposit Insurance Corporation Improvement Act of 1991 have been implemented, and supervisory and examination policies have undergone important changes designed to return federally insured depository institutions to safe and sound conditions.
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.
The negative outlook reflects the added headwinds to restoring GE's credit profile as a result of the $1.5 billion reserve that GE recorded in relation to the investigation by the Department of Justice of possible violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 by WMC, GE Capital's discontinued mortgage business, Moody's stated.
Concern over the potentially adverse effect of one particular change in the regulatory environment--that of increased premiums paid for deposit insurance by depository institutions--led the Congress, in section 1002 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, to require the Board of Governors of the Federal Reserve System to report annually on discernible changes in the availability of retail banking services and in the level of their fees.
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.
The Board instituted this effort to meet the requirements of section 1002 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).
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.
Another important initiative is the agencies' proposal to increase from $100,000 to $250,000 the threshold amount below which real estate-related loans do not require appraisals under title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. Raising the threshold should reduce the documentation burden and expense associated with loans to small businesses that are collateralized wholly or in part by property.
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