Federal Savings and Loan Insurance Corporation

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The Federal Savings and Loan Insurance Corporation (FSLIC) was an institution that insured and regulated savings and loan institutions in the United States.[citation needed]

FSLIC was created by the 1934 National Housing Act, which also and provided for the chartering of national mortgage associations as entities within the federal government. (The only association formed was the National Mortgage Association of Washington, which eventually became Fannie Mae.)

In 1967 the Savings and Loan Holding Company Act Amendments provided for the regulation of savings and loan holding companies by the FSLIC. The S&L crisis of the 1980s led to the establishment of a new federal regulatory agency for thrifts: in 1989, the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) abolished FSLIC and the FHLBB and created, in their place, the Office of Thrift Supervision (OTS) to regulate and supervise thrifts. The insurance function for savings associations was transferred to the FDIC.[1]

Savings and Loan crisis

The Savings & Loan crisis was the greatest collapse of U.S. financial institutions since the 1930s. From 1986 to 1989, FSLIC, the insurer of the thrift industry, closed or otherwise resolved 296 institutions with total assets of $125 billion. An even more traumatic period followed, with the creation of the Resolution Trust Corporation (RTC) in 1989 and that agency’s resolution by mid-1995 of an additional 747 thrifts with total assets of $394 billion.[2]

Main article: Savings & Loan crisis


  1. Rose Marie Kushmeider. "The U.S. Federal Financial Regulatory System: Restructuring Federal Bank Regulation", FDIC Banking Review. Referenced 2011-06-15.
  2. Timothy Curry and Lynn Shibut. "The Cost of the Savings and Loan Crisis: Truth and Consequences" (pdf), FDIC Banking Review, 2000 - Vol. 13, No. 2. Referenced 2011-06-15.