Consolidation and Restructuring of the U.S. Thrift Industry under the Financial Institutions Reform, Recovery, and Enforcement Act

摘要

The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and the crisis leading to it will cause a major restructuring of the thrift industry. The immediate objective of the legislation is to resolve the current crisis and close insolvent thrifts. Its ultimate objective is to prevent a recurrence of the recent crisis. Its wide-ranging provisions fund the resolution of insolvent thrifts, overhaul the industry's regulatory structure, restrict certain thrift activities, strengthen capital requirements, and improve regulators' enforcement powers. The report summarizes the major features of FIRREA and evaluates some of its consequences for the thrift industry.