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The reform of the S&L trade got here partially within the form of the Financial Institutions Reform Recovery and Enforcement Act (FIRREA) of 1989. FIREEA created the Office of Thrift Supervision, a new division of the FDIC to supervise the S&L trade -- goodbye, deregulation. One of the various causes the financial savings and loan trade has a nasty reputation is the notorious Whitewater scandal. Financial savings and loan associations, also known as thrift banks (as in thrifty or savings-minded), have a foul rap because of the large financial savings and mortgage crises of the 1980s and nineteen nineties. A whole lot of banks failed during this disaster, costing the federal government and taxpayers billions of dollars. But deregulation additionally lowered federal supervision of S&L investment and accounting practices, which enabled many banking officials to successfully steal cash from depositors' financial savings accounts. These agencies included the Federal Deposit Insurance coverage Company, which insured depositor accounts at commercial banks (the everyman's bank) and the Federal Financial savings and Loan Insurance coverage Company, which insured accounts at building and mortgage associations, now called financial savings and loan associations. Deregulation allowed S&Ls to offer industrial banking companies and other kinds of loans.

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