Home > West's Encyclopedia of American Law > Office of Thrift Supervision

The Office of Thrift Supervision (OTS) was established as a bureau of the TREASURY DEPARTMENT in August 1989 as part of a major REORGANIZATION PLAN of the thrift regulatory structure mandated by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C.A. § 1462a). The reorganization resulted from the savings and loan crisis of the 1980s, when a newly deregulated thrift industry invested in high-risk real estate ventures, many of which collapsed. This situation led to enormous financial losses and the call for more federal regulation and oversight.

The OTS is authorized to charter federal thrift institutions and to serve as the primary regulator of the 1,700 federal- and state-chartered thrifts that belong to the Savings Association...