What law was passed in 1989 in order to limit high risk transactions by savings and loans and to reorganize the federal agencies that supervised financial institutions?

The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 was a law that was passed in response to the savings and loan crisis of the 1980s. It was designed to limit high risk transactions by savings and loans and to reorganize the federal agencies that supervised financial institutions. The law established new regulations for financial institutions and created the Resolution Trust Corporation (RTC) to manage and sell off the assets of failed savings and loans. FIRREA also established the Office of Thrift Supervision (OTS) as a regulatory agency for thrift institutions.