FIRREA: A Renewed And Formidable Enforcement Weapon
August 22, 2013, 9:25 PM EDT
Law360, New York (August 22, 2013, 9:25 PM EDT) -- In the wake of the savings and loan crisis of the 1980s, Congress passed the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA). Upon its enactment, FIRREA dramatically impacted the banking industry and the functions and powers of federal banking regulators, but it was rarely used for civil fraud enforcement.
Lately, however, prosecutors have added FIRREA to their arsenal by using its provisions to bring claims of financial fraud against major financial institutions and rating agencies. Taking advantage of FIRREA’s lengthy statute of limitations,...