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Unformatted text preview: the FDIC is not subject to the direction or supervision of any other agency or department of the United States or of any state. If a bank or savings institution fails, the FDIC can take any appropriate action to put the insured deposit institution in a sound and solvent position. The FDIC can appropriate funds to carry on the business of the institution and conserve its assets and property and may also, if necessary: Organize a new federal savings association to take over such assets or liabilities; or Dynasty School (www.dynastySchool.com) 5-9 REAL ESTATE FINANCE
Merge the insured deposits of the failed institution with those of another insured depository organization. Place the insured depository institution in liquidation and proceed to dispose of its assets. In the event of liquidation, the payment of insured deposits will be made by the FDIC as soon as possible, either by cash or by a transferred deposit into another insured depository institution. FIRREA also eliminated the old Federal Savings and Loan Insurance Corporation (FSLIC), granting the FDIC permanent responsibility for managing the Savings Association Insurance Fund (SAIF), which replaced the old FSLIC in insuring savings banks (the new name for S&Ls). For more information on FDIC, please visit web-site: www.fdic.gov/bank/historical/index.html FEDERAL HOME LOAN BANK BOARD
The Federal Home Loan Bank Board (FHLBB) is an independent federal regulatory agency which serves savings and loan associations in a manner similar to the way that the Federal Reserve System serves banks. It acts as the “banker's bank.” Origin and Structure – The FHLBB was created in 1932. The United States is divided into 12 districts with a Federal Home loan Bank established in each district. Purpose – The FHLBB provides a credit reserve system for its members. Members can borrow funds on a long–term or short–term basis at the current discount rate, and pledge existing loans and trust deeds as security to borrow funds. MEMBERSHIP
Both federal and state chartered savings and loan associations may belong...
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