Federal Home Loan Bank Board

Federal Home Loan Bank Board, independent U.S. federal agency, made up of 3 presidential appointees, that supervised and regulated savings and loans associations between 1932 and 1990. The board was the country's major private source of funds to pay for building and buying homes. It operated the Federal Savings and Loan Insurance Corporation (FSLIC) to protect the savings of those who had money in accounts with FSLIC-insured associations. In the late 1980s it was discovered that FSLIC funds were not actually sufficient to cover its responsibilities. A scandal ensued, with many indictments for fraud, and the result that the federal government will have to bail out the FSLIC for what will probably be hundreds of billions of dollars.