Federal Deposit Insurance Corporation Improvement Act of 1991

Federal Deposit Insurance Corporation Improvement Act Of 1991

Federal Deposit Insurance Corporation Improvement Act of 1991

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The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA), passed during the Savings and loan crisis, strengthened the power of the Federal Deposit Insurance Corporation.

It allowed the FDIC to borrow directly from the Treasury department and mandated that the FDIC resolve failed banks using the least-costly method available. It also ordered the FDIC to assess insurance premiums according to risk and created new capital requirements.






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