L. 102–242), passed during the savings and loan crisis in the United States, strengthened the power of the Federal Deposit Insurance Corporation.

It also ordered the FDIC to assess insurance premiums according to risk and created new capital requirements.

[1] The motivation behind the law is to provide incentives for banks to address problems while they are still small enough to be manageable.

In an interview on Bill Moyers Journal broadcast April 3, 2009, former bank regulator William K. Black asserted that federal officials were ignoring the PCA law requiring them to put insolvent banks into receivership.

[2] The PCA law applies only to institutions insured by the FDIC and therefore would not affect, for better or worse, companies such as AIG.