Federal Savings And Loan Insurance Corporation (FSLIC)

The Federal Savings and Loan Insurance Corporation (FSLIC) was an institution in the U.S. government that gave deposit insurance to savings and loan associations (until the late 1980s, when it died...RIP, FSLIC). The FSLIC is kind of like the FDIC (Federal Deposit Insurance Corporation), covering deposits up to $100,000.

Actually, while savings and loan companies are still around (and the FSLIC is not), savings and loan companies now have their deposits insured by the FDIC. After the savings and loan crisis in the 1980s (which continued into the 1990s...a slow and painful death), FIRREA legislation (Financial Institutions Reform, Recovery, and Enforcement Act of 1989) got rid of the FSLIC.

While the FSLIC served its function as a safety net for the savings and loan associations, its dissolution meant that savings and loans companies were no longer backed by taxpayer dollars. While the FSLIC was funded by taxpayer money, the FDIC is not; it’s backed by the U.S. Treasury instead.