Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) (FIRREA)

Enacted by Congress in 1989 in response to the savings and loan crisis of the 1980s, FIRREA abolished FSLIC, transferred its assets, liabilities, and operations to the newly created FSLIC Resolution Fund, and created a new insurance fund for thrift depositors known as the Savings Association Insurance Fund. FIRREA also created the Resolution Trust Corporation to resolve all troubled financial institutions placed into conservatorship or receivership and reorganized Freddie Mac into a for-profit corporation owned by private shareholders.