FIRREA - The cost of the bailout has been estimated at over...

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FIRREA 1. Federal Home Loan Bank Board and the FSLIC were abolished 2. Bank Board's regulatory role was given to the Office of Thrift Supervision and the FDIC took over for the FSLIC 3. created the Resolution Trust Corporation to manage the resolution of insolvent thrifts 4. imposed restrictions on S&L activities similar to those in effect before 1982 5. increasaed capital requirements to those adhered to by commercial banks 6. increased the enforcement power of thrift regulators 7. increased deposit insurance premiums
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Unformatted text preview: The cost of the bailout has been estimated at over $500 billion over forty years. Possible Reforms eliminate deposit insurance entirely lower the limits on the amount of insurance allow deposit insurance only at "narrow banks" that invest only in virtually risk free assets like T-bills provide deposit insurance by private insurers] base deposit insurance premiums on risk eliminate branching restrictions use market-value accounting for capital requirements...
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