When comparing high performing with low-performing thrifts, low-performing thrifts tend to have fewer:
A) intangible assets.
B) repossessed properties.
C) high-yield securities.
D) residential mortgages.
The takeover of weakly but still positively capitalized thrifts was an important part of the
A) FDIC Improvement Act of 1991.
B) FIRRE Act of 1989.
C) Garn-St. Germain Act of 1982.
D) DIDMCA Act of 1980.
Which of the following has contributed to the very low capital levels of thrifts?
A) the use of the mutual form of organization.
B) loan losses.
C) high operating expenses.
D) all of the above
A manager/owner agency problem for thrifts when capital ratios were low was
A) managers would inflate salaries and perks for themselves.
B) managers were encouraged to assume excessive credit risk.
C) managers were encouraged to sell low-yielding mortgages, book the loss, and reinvest in higher yielding 1-4 family residential mortgages.
D) managers were encouraged to reduce risk to dangerously low levels.