Moral-Hazard

S&L Crisis Lessons Documented But Ignored: Stage Set for 2008 Repeat

1990-01-01 00:00:00 +0000 UTC | Importance: 8/10

As the S&L crisis concludes with over 1,000 failed institutions, 1,000+ banker prosecutions, and $160 billion taxpayer cost, government reports and academic studies document clear lessons: deregulation without corresponding risk management enables fraud, moral hazard from deposit insurance …

Financial regulators Congress Banking industry Economics profession s&l-crisis lessons-ignored financial-regulation moral-hazard 2008-crisis

S&L Deregulation Creates Moral Hazard: Recipe for Systematic Fraud

1982-01-01 00:00:00 +0000 UTC | Importance: 8/10

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 Reagan Savings and Loan industry Federal Home Loan Bank Board Federal Savings and Loan Insurance Corporation s&l-crisis moral-hazard deregulation fraud deposit-insurance