Deregulation, Insolvency and Greed: A Review of the Savings and Loan Crisis on the 1980's
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Authors
Stein, Simon L.
Issue Date
1990
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
This paper is divided into three parts. The first part
outlines the causes of the Savings and Loan shakeup in 1980. In
this section the effects of deregulation are addressed as well as
the issues of climbing interest rates. Other factors are
considered as well such as the difficulties thrift institutions
had "covering the spread" between interest received and interest
paid.
The second segment of part I outlines the issues of the second
crisis. The second crisis is a direct result of the abuse of FSLIC
deposit insurance, as well as a general lack of net worth in the
thrift industry. The issue is further compounded by the lack of
prompt action taken by supervisory members of the FSLIC and the
bank board.
In addition, the second segment of part I addresses possible
solutions and analyzes the state of the industry today. The
certainty of a thrift industry in the future is uncertain.
Government forces are slow to move on a problem that could cost as
much as $300 billion to repair.
Part II of the Senior Project describes the workings of the
Reynolds-Wells Corporation and its quest to provide real estate
financing services. The steps of a transaction are outlined from
start to finish. Further, my own contributions to the company are
discussed.
Part III of the Senior Project discusses some of my goals and
plans for the future. More specifically, the areas of future
course work, graduate school, employment, and life after Kalamazoo
College are touched upon.
Appendix A is composed of sample "tombstone" advertisements
created by myself for implementation in various trade journals.
Description
iv, 59 p.
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License
U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.