Federal Deposit Insurance Corporation Improvement Act (FDICIA, 1991)

1) Link to the Text of the Act
Read the statute (12 U.S.C. §§ 1811 et seq.)

2) Why It Was Done
Passed after continuing bank and thrift failures in the late 1980s and early 1990s, FDICIA strengthened the FDIC’s authority, imposed stricter capital requirements, and introduced a system of prompt corrective action to intervene in troubled banks before collapse.

3) Pre-existing Law or Constitutional Rights
FIRREA (1989) had addressed the S&L crisis, but weaknesses remained in deposit insurance and bank supervision. FDICIA expanded federal authority over banks but did not directly impact constitutional rights.