savings and loan crisis of the 1980s

E421978

banking crisis economic event financial crisis

The savings and loan crisis of the 1980s was a major U.S. financial disaster in which hundreds of savings and loan institutions failed due to risky lending, deregulation, and fraud, leading to massive taxpayer-funded bailouts and significant reforms of the financial sector.

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All labels observed (4)

Label	Occurrences
United States savings and loan crisis	2
United States savings and loan crisis of the 1980s and early 1990s	1
late-1980s savings and loan crisis	1
savings and loan crisis of the 1980s canonical	1

Statements (49)

Predicate	Object
instanceOf	banking crisis ⓘ economic event ⓘ financial crisis ⓘ
affectedSector	savings and loan industry ⓘ
alsoKnownAs	S&L crisis ONNED1 ⓘ
approximateCostToTaxpayers	about 124 billion U.S. dollars in direct taxpayer costs ⓘ hundreds of billions of U.S. dollars ⓘ
consequence	consolidation of the U.S. banking industry ⓘ increased federal oversight of depository institutions ⓘ large taxpayer-funded bailouts ⓘ loss of public confidence in thrift institutions ⓘ tightening of real estate lending standards ⓘ
country	United States of America ⓘ surface form: United States
endTime	early 1990s ⓘ
historicalContext	followed decades of heavy thrift involvement in fixed-rate home mortgages ⓘ occurred during a period of high and volatile interest rates ⓘ
impact	increased federal budget deficits ⓘ reforms in bank and thrift capital requirements ⓘ significant losses for deposit insurance funds ⓘ
insuranceSchemeInvolved	Federal Savings and Loan Insurance Corporation NERFINISHED ⓘ
involvedActivity	brokered deposits growth ⓘ junk bond investments by some thrifts ⓘ speculative commercial real estate lending ⓘ
ledTo	Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ONNED1 ⓘ creation of the Resolution Trust Corporation ⓘ restructuring of thrift industry supervision ⓘ strengthening of federal banking regulation ⓘ
mainCause	deregulation of savings and loan institutions ⓘ fraud and insider abuse ⓘ interest rate volatility ⓘ mismatch between short-term deposits and long-term fixed-rate mortgages ⓘ risky lending practices ⓘ weak regulatory oversight ⓘ
notableFeature	heavy concentration of failures in Texas and the Southwest ⓘ numerous criminal prosecutions of thrift executives ⓘ political controversy over regulatory forbearance ⓘ widespread insolvency of thrift institutions ⓘ
numberOfFailedInstitutions	over 1000 savings and loan associations ⓘ
primaryRegulatedEntities	savings and loan associations ⓘ
regulatoryChange	abolition of the Federal Home Loan Bank Board ⓘ abolition of the Federal Savings and Loan Insurance Corporation ⓘ creation of the Office of Thrift Supervision ⓘ transfer of thrift insurance to the FDIC ⓘ
relatedLegislation	Depository Institutions Deregulation and Monetary Control Act of 1980 ONNED1 ⓘ Garn–St. Germain Depository Institutions Act of 1982 NERFINISHED ⓘ
sector	U.S. financial sector ⓘ
significantPeriod	1980s ⓘ
startTime	late 1970s ⓘ
totalResolutionCostEstimate	around 160 billion U.S. dollars ⓘ

Referenced by (5)

Full triples — surface form annotated when it differs from this entity's canonical label.

Federal Savings and Loan Insurance Corporation → dissolutionCause → savings and loan crisis of the 1980s ⓘ

Silverado Savings and Loan → partOf → savings and loan crisis of the 1980s ⓘ

this entity surface form: United States savings and loan crisis

Silverado Savings and Loan → relatedEvent → savings and loan crisis of the 1980s ⓘ

this entity surface form: United States savings and loan crisis of the 1980s and early 1990s

Public Law 101-73 → responseTo → savings and loan crisis of the 1980s ⓘ

this entity surface form: United States savings and loan crisis

Resolution Trust Corporation → significantEvent → savings and loan crisis of the 1980s ⓘ

this entity surface form: late-1980s savings and loan crisis