A major outcome of FIRREA was to improve what aspect of financial institutions?

FIRREA, or the Financial Institutions Reform, Recovery, and Enforcement Act, was enacted in response to the savings and loan crisis of the 1980s and early 1990s. One of its primary objectives was to enhance the regulatory oversight of financial institutions, particularly in relation to their risk management practices.

By focusing on improving risk management, FIRREA aimed to ensure that banks and savings institutions were better equipped to identify, assess, and mitigate various financial risks. This includes both market risks and operational risks, thus promoting greater stability in the financial system. The act established stricter requirements for capital reserves and financial reporting, which encouraged institutions to adopt more stringent and effective risk management strategies.

The other options—consumer advertising strategies, loan processing times, and employee training programs—are important but do not directly address the core focus of FIRREA, which was fundamentally about improving the safety and soundness of financial institutions through enhanced risk management practices. This alignment with safety measures was essential to restore public confidence and prevent future financial crises.