Federal Savings and Loan Insurance Corporation

The Federal Savings and Loan Insurance Corporation (FSLIC) was a government agency established in 1934 to insure deposits at savings and loan associations, similar to how the FDIC insures bank deposits. Its purpose was to promote stability and public confidence in thrift institutions, which primarily focused on savings and mortgage loans. During financial crises, FSLIC was responsible for protecting depositors when these institutions failed. In the late 1980s, FSLIC faced significant losses due to widespread failures, leading to its dissolution in the early 1990s, with its responsibilities being absorbed by other agency functions.