S&l-Crisis

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

FIRREA Signed: $160 Billion Taxpayer Bailout of S&L Industry Fraud

1989-08-09 00:00:00 +0000 UTC | Importance: 9/10

President George H.W. Bush signs the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), authorizing a $160.1 billion taxpayer bailout of the savings and loan industry—with $132 billion coming directly from taxpayers through higher taxes and fees. The legislation creates the …

George H.W. Bush Congress Resolution Trust Corporation Federal Deposit Insurance Corporation s&l-crisis firrea bailout taxpayers deregulation-failure +1 more

Lincoln Savings Seized: $2.3 Billion Loss Exposes Keating Fraud Network

1989-04-14 00:00:00 +0000 UTC | Importance: 9/10

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 Keating Federal Home Loan Bank Board Resolution Trust Corporation Lincoln Savings and Loan Keating Five Senators charles-keating lincoln-savings s&l-crisis fraud seizure +1 more

Lincoln Savings Collapse: $3.4 Billion Taxpayer Bailout

1989-04-14 00:00:00 +0000 UTC | Importance: 9/10

Lincoln Savings and Loan collapses the day after its parent company American Continental Corporation files bankruptcy, requiring a $3.4 billion federal bailout and leaving 23,000 mostly elderly investors with worthless bonds. The failure represents the largest single cost in the S&L crisis and …

Lincoln Savings and Loan American Continental Corporation Charles Keating Federal Deposit Insurance Corporation Resolution Trust Corporation +1 more lincoln-savings-collapse s&l-crisis keating-five taxpayer-bailout systematic-corruption +1 more

S&L Industry Collapse: Over 1,000 Institutions Failed by 1989

1989-01-01 00:00:00 +0000 UTC | Importance: 9/10

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 institutions Federal Home Loan Bank Board Federal Savings and Loan Insurance Corporation Resolution Trust Corporation s&l-crisis financial-crisis deregulation-failure systemic-collapse regulatory-failure

Silverado S&L Collapses: Neil Bush Conflict of Interest Costs Taxpayers $1 Billion

1988-12-01 00:00:00 +0000 UTC | Importance: 8/10

Silverado Savings and Loan collapses with losses exceeding $1 billion to taxpayers, exposing serious conflicts of interest involving Neil Bush, son of Vice President-elect George H.W. Bush. Neil Bush served on Silverado’s board of directors from 1985-1988, during which he approved over $130 …

Neil Bush George H.W. Bush Silverado Savings and Loan Federal Deposit Insurance Corporation Good International +1 more neil-bush silverado s&l-crisis conflict-of-interest fraud +1 more

S&L Crisis Prosecutions: 1,000+ Bankers Convicted, Contrasts Sharply with 2008

1988-01-01 00:00:00 +0000 UTC | Importance: 8/10

Between 1988 and 1992, the Department of Justice prosecutes over 1,000 savings and loan bankers for fraud and related crimes during the S&L crisis, with regulators making over 30,000 criminal referrals that produce felony convictions in cases designated as “major” by DOJ. Federal …

Department of Justice Federal Bureau of Investigation Office of Thrift Supervision S&L executives s&l-crisis prosecutions accountability white-collar-crime justice-department

Empire Savings Failure Exposes Land Flip Fraud Networks

1984-03-01 00:00:00 +0000 UTC | Importance: 7/10

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 Savings Edwin Gray Federal Home Loan Bank Board Texas Real Estate Networks Reagan Administration +1 more empire-savings land-flip-fraud s&l-crisis edwin-gray systematic-fraud +1 more

Charles Keating Purchases Lincoln S&L: Systematic Fraud Network

1984-02-01 00:00:00 +0000 UTC | Importance: 8/10

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 Keating American Continental Corporation Lincoln Savings and Loan Keating Five Senators Federal Home Loan Bank Board charles-keating lincoln-savings fraud keating-five regulatory-capture +1 more

Reagan Signs Garn-St Germain Act: Massive Thrift Deregulation

1982-10-15 00:00:00 +0000 UTC | Importance: 8/10

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 Reagan Jake Garn (R-UT) Fernand St Germain (D-RI) Chuck Schumer Steny Hoyer +2 more deregulation thrift-industry regulatory-capture reagan-administration s&l-crisis +1 more

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