One reason given for the collapse in the savings and loan industry in the late 1980s and early 1990s is
A) the lack of government insurance on savings and loan deposits.
B) that savings and loan investments were limited to relatively low-yielding government bonds.
C) that the savings and loan banks required significant amounts of owner-provided funds to be profitable.
D) that their reserve requirements were greater than those for commercial banks.
E) that they made risky short-term loans during an era of financial deregulation and lax regulatory supervision.

Question

Quizplus · Accepted Answer

One reason for the collapse of the savings and loan industry in the late 1980s and early 1990s was that they made risky short-term loans during an era of financial deregulation and lax regulatory supervision. This led to many savings and loan banks failing to meet their obligations, resulting in significant losses for depositors and taxpayers.

One Reason Given for the Collapse in the Savings and Loan