Financing Corporation
Encyclopedia
The Financing Corporation (FICO) is a mixed-ownership United States
government-sponsored enterprise
that operated as a financing vehicle for the Federal Savings and Loan Insurance Corporation
(FSLIC) Resolution Fund. As of July 1997 its outstanding debt stood at $8.2 billion. Its bond interest payments are funded by the Deposit Insurance Fund (DIF) premiums of the Federal Deposit Insurance Corporation
(FDIC).
pursuant to the Federal Savings and Loan Insurance Corporation Recapitalization Act of 1987. FICO's sole purpose was for issuing bonds to finance a rebuilding of the Federal Savings and Loan Insurance Corporation
(FSLIC), and after the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to function as a financing vehicle for the FSLIC Resolution Fund created to assume all the assets and liabilities of the FSLIC. Pursuant to the Recapitalization Act, FICO was authorized to issue debentures, bonds, and other obligations subject to limitations, the net proceeds of which were to be used solely to purchase capital certificates issued by the FSLIC Resolution Fund, or to refund any previously issued obligations. The Resolution Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991 terminated FICO's borrowing authority.
After FIRREA, FICO bond payments were to come out of Federal Deposit Insurance Corporation
(FDIC) Savings Association Insurance Fund (SAIF) premiums instead of FSLIC premiums. The Deposit Insurance Funds Act of 1996 required Bank Insurance Fund (BIF) members to share the FICO bond interest obligation with the Savings Association Insurance Fund (SAIF) members. The Federal Deposit Insurance Reform Act of 2005 merged the BIF and the SAIF into a new fund, the Deposit Insurance Fund (DIF).
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
government-sponsored enterprise
Government-sponsored enterprise
A government-sponsored enterprise is a financial services corporation created by the United States Congress. Their function is to enhance the flow of credit to targeted sectors of the economy and to make those segments of the capital market more efficient and transparent...
that operated as a financing vehicle for the Federal Savings and Loan Insurance Corporation
Federal Savings and Loan Insurance Corporation
The Federal Savings and Loan Insurance Corporation was an institution that administered deposit insurance for savings and loan institutions in the United States...
(FSLIC) Resolution Fund. As of July 1997 its outstanding debt stood at $8.2 billion. Its bond interest payments are funded by the Deposit Insurance Fund (DIF) premiums of the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
(FDIC).
History
FICO was chartered by the Federal Home Loan Bank BoardFederal Home Loan Bank Board
The Federal Home Loan Bank Board was a board created by the Federal Home Loan Bank Act of 1932 that created and oversaw the Federal Home Loan Banks also created by the act. It was superseded by the Federal Housing Finance Board and the Office of Thrift Supervision in the Financial Institutions...
pursuant to the Federal Savings and Loan Insurance Corporation Recapitalization Act of 1987. FICO's sole purpose was for issuing bonds to finance a rebuilding of the Federal Savings and Loan Insurance Corporation
Federal Savings and Loan Insurance Corporation
The Federal Savings and Loan Insurance Corporation was an institution that administered deposit insurance for savings and loan institutions in the United States...
(FSLIC), and after the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to function as a financing vehicle for the FSLIC Resolution Fund created to assume all the assets and liabilities of the FSLIC. Pursuant to the Recapitalization Act, FICO was authorized to issue debentures, bonds, and other obligations subject to limitations, the net proceeds of which were to be used solely to purchase capital certificates issued by the FSLIC Resolution Fund, or to refund any previously issued obligations. The Resolution Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991 terminated FICO's borrowing authority.
After FIRREA, FICO bond payments were to come out of Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
(FDIC) Savings Association Insurance Fund (SAIF) premiums instead of FSLIC premiums. The Deposit Insurance Funds Act of 1996 required Bank Insurance Fund (BIF) members to share the FICO bond interest obligation with the Savings Association Insurance Fund (SAIF) members. The Federal Deposit Insurance Reform Act of 2005 merged the BIF and the SAIF into a new fund, the Deposit Insurance Fund (DIF).