Garn–St Germain Depository Institutions Act

Garn–St Germain Depository Institutions Act (1982)

1) Link to the Text of the Act
Read the statute (12 U.S.C. §§ 1464, 1701j–3, 3801 et seq.)

2) Why It Was Done
Enacted to address the crisis in the savings and loan (S&L) industry, the Act further deregulated depository institutions, expanded lending powers, and introduced new mortgage options. It was intended to give S&Ls more flexibility and prevent widespread failures.

3) Pre-existing Law or Constitutional Rights
The Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) had already begun phasing out deposit interest ceilings. Garn–St Germain went further, granting S&Ls broader powers in lending and commercial activity. No constitutional rights were directly altered.

Acts

Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)

Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA, 1989)

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

2) Why It Was Done
Passed in response to the Savings and Loan crisis, FIRREA overhauled regulation of thrift institutions, abolished the Federal Home Loan Bank Board, created new oversight agencies, and authorized taxpayer funds to resolve failing S&Ls.

3) Pre-existing Law or Constitutional Rights
Previous deregulation under DIDMCA (1980) and Garn–St Germain (1982) had allowed excessive risk-taking, leading to collapse. FIRREA imposed stricter regulation and accountability, but did not alter constitutional rights.