S&L crisis - one more time

The S&L crisis was created by lax regulations, which allowed thrifts to expand into unfamiliar areas such as commercial real estate and junk bonds, without regulatory safeguards and adequate capital reserves. The responsible position of the government for the future is to emphasize capital stren...

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Bibliographic Details
Published in:National Mortgage News 1993-03, Vol.17 (19), p.4
Main Author: Leach, James A
Format: Article
Language:English
Subjects:
Bank Capital
Banks
Clinton, Bill
Junk bonds
Political Activities
Regulations
Savings & loan associations
Savings & Loan Debacle
Us Congress
Online Access:Get full text
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Summary:The S&L crisis was created by lax regulations, which allowed thrifts to expand into unfamiliar areas such as commercial real estate and junk bonds, without regulatory safeguards and adequate capital reserves. The responsible position of the government for the future is to emphasize capital strength and ratios, not micro- management. The banks have grown stronger over the last four years, and nothing should be done to weaken them. Another important action which should be taken is campaign reform. This is needed because advocacy groups have played too large a role in policy-making, including decisions which led to the S&L debacle.
ISSN:1050-3331