What Was The Cause Of The Savings And Loan Crisis Of The 1980s?

What Was The Cause Of The Savings And Loan Crisis Of The 1980s? The roots of the S&L crisis lay in excessive lending, speculation, and risk-taking driven by the moral hazard created by deregulation and taxpayer bailout guarantees. Some S&Ls led to outright fraud among insiders and some of these S&Ls knew of—and allowed—such fraudulent