federal agency established by Congress in 1934 to insure deposits in savings and loan associations and savings banks. During the 1980s, heavy losses by savings institutions depleted the reserves of the FSLIC, causing it to become insolvent. The Finacial Institutions Reform, Recovery And Enforcement Act of 1989 transferred the assets and liabilities of the FSLIC to a new deposit insurance fund, the Savings Association Insurance Fund (SAIF), a deposit insurance fund operated by the Federal Deposit Insurance Corporation.
agency of the federal government, founded in 1934 and disbanded in 1989, that insured depositors in Savings And Loan Association against loss of PRINCIPAL. Since 1989 this function has been performed by the Federal Deposit Insurance Corporation (FDIC).
federal agency established in 1934 to insure deposits in member savings institutions. In 1989, Congress passed savings and loan bailout legislation revamping the regulatory structure of the industry. FSLIC was disbanded and its insurance activities were assumed by a new agency, Savings Association Insurance Fund (SAIF), a unit of the Federal Deposit Insurance Corporation (FDIC). Responsibility for insolvent institutions previously under FSLIC's jurisdiction was assumed by another newly created agency, Resolution Funding Corporation (REFCORP).
agency of the federal government formed as the result of bankruptcies of savings and loan associations during the 1930s. Insures deposits of customers up to $100,000 for each account. In 1986, 1987, 1988, 1989, and 1990, when numerous savings and loan associations failed or nearly failed, FSLIC backed up their deposits and prevented runs.
