Federal regulators seize Lincoln Savings and Loan, ending Charles Keating’s systematic fraud scheme that ultimately costs taxpayers $2.3 billion—one of the costliest S&L failures in American history. The seizure comes after years of regulatory delays caused by political interference from …
Charles KeatingFederal Home Loan Bank BoardResolution Trust CorporationLincoln Savings and LoanKeating Five Senatorscharles-keatinglincoln-savingss&l-crisisfraudseizure+1 more
By 1989, over 1,000 savings and loan institutions have failed, representing approximately one-third of the entire S&L industry and marking one of the worst financial industry collapses in American history. The systemic failure stems directly from 1980s deregulation that eliminated prudential …
Savings and Loan institutionsFederal Home Loan Bank BoardFederal Savings and Loan Insurance CorporationResolution Trust Corporations&l-crisisfinancial-crisisderegulation-failuresystemic-collapseregulatory-failure
Five U.S. Senators—Alan Cranston (D-CA), Dennis DeConcini (D-AZ), John Glenn (D-OH), John McCain (R-AZ), and Donald Riegle (D-MI)—meet with Federal Home Loan Bank Board officials to pressure them to halt regulatory investigation of Charles Keating’s Lincoln Savings and Loan. The senators had …
Alan Cranston (D-CA)Dennis DeConcini (D-AZ)John Glenn (D-OH)John McCain (R-AZ)Donald Riegle (D-MI)+3 morekeating-fiveregulatory-capturecampaign-contributionslincoln-savingssystematic-corruption+1 more
The failure of Empire Savings of Mesquite, Texas exposes systematic “land flip” fraud schemes that would eventually cost taxpayers $300 million. The failure reveals coordinated criminal networks exploiting deregulated thrift powers, including inflated real estate appraisals, circular …
Empire SavingsEdwin GrayFederal Home Loan Bank BoardTexas Real Estate NetworksReagan Administration+1 moreempire-savingsland-flip-frauds&l-crisisedwin-graysystematic-fraud+1 more
Charles Keating, through American Continental Corporation, purchases Lincoln Savings and Loan for $51 million. Exploiting the deregulated environment created by Garn-St Germain, Keating rapidly expands Lincoln’s assets from $1.1 billion to $5.5 billion over four years through high-risk real …
Charles KeatingAmerican Continental CorporationLincoln Savings and LoanKeating Five SenatorsFederal Home Loan Bank Boardcharles-keatinglincoln-savingsfraudkeating-fiveregulatory-capture+1 more
President Reagan signs the Garn-St Germain Depository Institutions Act in the Rose Garden, calling it “the most important legislation for financial institutions in the last 50 years.” The Act removes Depression-era constraints on thrift asset holdings, allows S&Ls to make high-risk …
Ronald ReaganJake Garn (R-UT)Fernand St Germain (D-RI)Chuck SchumerSteny Hoyer+2 morederegulationthrift-industryregulatory-capturereagan-administrations&l-crisis+1 more
Reagan-era S&L deregulation creates massive moral hazard by combining three toxic elements: elimination of prudential lending standards, expanded federal deposit insurance covering risky investments, and weakened regulatory oversight. The Garn-St. Germain Act removes Depression-era constraints …
Ronald ReaganSavings and Loan industryFederal Home Loan Bank BoardFederal Savings and Loan Insurance Corporations&l-crisismoral-hazardderegulationfrauddeposit-insurance