Financial Institutions Reform, Recovery, and Enforcement Act of 1989

The document is a comprehensive report on various amendments made to financial laws and regulations in 1989. The Federal Deposit Insurance Act, Bank Holding Company Act, Home Owners Loan Act, and Federal Credit Union Act are some of the key statutes that have been amended to strengthen oversight and enforcement powers for depository institutions and credit unions. One of the main goals of these amendments is to increase penalties for violations and improve accountability among institution-affiliated parties. The amendments provide for increased civil money penalties for more severe violations, with daily limits ranging from $25,000 to $1 million. Institutions that commit certain types of violations may be subject to increased penalties, including up to 1% of their total assets. Additionally, the amendments clarify criminal penalty provisions for violations related to certain orders issued by regulatory agencies. They also require a depository institution insured by the FDIC or a credit union insured by the NCUA to provide prior notice before adding an individual to its board of directors or employing them as a senior executive officer. Furthermore, the document mentions specific laws and regulations that have been amended, such as the Community Reinvestment Act of 1977 and the Real Estate Appraisal Reform Amendments. These amendments aim to promote affordable housing, prevent discriminatory lending practices, and improve the quality of appraisals in federally related transactions. The Resolution Trust Corporation is authorized to sell or otherwise dispose of assets of failed credit unions and banks in a way that minimizes losses. The Board, as conservator or liquidating agent, shall not be required to post any bond in order to pursue remedies available to the credit union. Overall, these amendments aim to strengthen oversight and enforcement powers for depository institutions and credit unions, while also promoting affordable housing and preventing discriminatory lending practices.