Financial Institutions Regulatory Act

The Financial Institutions Regulatory and Interest Rate Control Act of 1978, or FIRA, is kind of what it sounds like: a federal law that slapped some regulations and interest rate rules onto financial institutions...particularly ones that take deposits (i.e. banks). Yep, things were a little more Wild West in the banks pre-1978.

FIRA, among other things, created the FFIEC, or the Federal Financial Institutions Examination Council, a governmental body to regulate banks and set some banking standards for people. For instance, electronic funds transfers and loan terms became federally regulated. FIRA also laid down the procedural law regarding people’s right to financial privacy, including the federal government’s right to subpoena financial docs in the case of national security.

FIRA isn’t just a showpony; its reports and standards are used by the Federal Reserve, the FDIC, the Consumer Financial Protection Bureau, and other federal money-related agencies. Kind of like Rock and Roll Heaven...for lawyers and accountants.