Created about the same time as the FDIC, the FSLIC, which insured up to $100,000 in deposits at savings and loan institutions, also known as “thrifts.” In the 1980s, the “savings and loan crisis” caused the FSLIC to become insolvent.

In 1989 it was disbanded by the FIRREA Act and replaced by the Resolution Trust Company (RTC) which was merged with the FDIC a few years later. During the 1980s, a huge number of savings and loan companies (“thrifts”) went bankrupt.

The pressure on the FSLIC, which had been established during the Great Depression to insure thrift deposits for the protection of consumers, was just too much. The FSLIC was administered by the Federal Home Loan Bank Board (FHLBB), but both of them were voided by the Financial Institutions Reform Recovery and Enforcement Act of 1989.

This came after the FSLIC had already been bailed out by taxpayers once in 1986 and once in 1987, to the tune of about $25 billion total, which is worth about $53 billion in 2016.

In 2016 the FDIC insures all consumer deposits at member institutions up to $250,000 per person/beneficiary.

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