The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 effectively removed many of the powers that had been granted to savings and loans in the early 1980s.

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The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) was enacted in response to the savings and loan crisis of the 1980s. It aimed to reform, recapitalize, and consolidate the savings and loan industry, which had been granted expanded powers in the early 1980s that contributed to their risky financial practices and eventual collapse. FIRREA significantly tightened regulations on savings and loans, effectively removing many of the powers they had been granted.