FIRREA was enacted in response to which of the following issues?

The enactment of FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act) was primarily a response to significant financial institution failures that occurred during the savings and loan crisis in the 1980s and early 1990s. This crisis saw the collapse of numerous savings and loan associations, leading to a widespread loss of public confidence in financial institutions and necessitating federal intervention.

FIRREA was designed to provide more robust regulatory oversight of thrifts and banks, to stabilize the savings and loan industry, and to address the problems linked to failed institutions. It established the Resolution Trust Corporation (RTC) to manage and resolve the assets of failed financial institutions, aimed to restore public trust, and reformed the regulatory framework governing banks and thrifts.

The other options, while they may address real issues, do not encapsulate the primary motivation behind FIRREA. High unemployment rates and excessive taxation on bank profits were not the direct catalysts for this legislation. Similarly, although the growth of unregulated mortgage markets was a concern, it was not the focused issue driving the specific reforms implemented by FIRREA. Overall, financial institution failures were the critical concern that prompted the law's establishment and shaped its provisions.