Global Definitions Database

A US federal law passed in 1989 that provided government funds to insolvent savings and loan associations, and mandating sweeping changes in the examination and supervision of savings and loans; designed to reform, recapitalize, and consolidate the Federal deposit insurance system, enhance the regulatory and enforcement powers of Federal financial institutions regulatory agencies, and ensure that real estate appraisals are performed to standard; required savings and loans to adopt new capital standards, transferred the regulatory powers of the Federal Home Loan Bank Board to the newly formed Office of Thrift Supervision, and placed the 12 district Federal Home Loan Banks under control of an oversight board, the Federal Housing Finance Board; also abolished the defunct Federal Savings and Loan Insurance Corporation (FSLIC), expanded the enforcement powers of banking regulators, authorizing banking agencies to assess civil money penalties up to $1 million a day and criminal penalties up to $5 million a day, and added bank fraud to crimes covered under the Racketeer Influenced and Corrupt Organizations Act (RICO).