Financial Institutions Reform, Recovery and Enforcement Act

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.

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The Financial Institutions Reform, Recovery and Enforcement Act requires appraisals for federally related transactions to be performed by people who meet state certification or licensing requirements.
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.
The Knowledge Group has assembled a panel of key thought leaders to provide the audience with an over-view and in-depth analysis of the Financial Institutions Reform, Recovery and Enforcement Act. Speakers will discuss the latest developments regarding its enactment, enforcement, and potential effects on financial industries; among others.
The settlement is the largest ever extracted under the Financial Institutions Reform, Recovery and Enforcement Act and will be split between penalties and relief for beleaguered homeowners.
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.
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. Not only did Carver withstand the changes brought about by the act, but it was touted as a model for the nation's thrifts because of its capital cushion of $238 million in assets.
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.
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.
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