Journal Article

Reforming deposit insurance: lessons from the savings and loan crisis

Abstract: A history of the collapse of the savings and loan industry. The authors contend that FSLICs institutional structures, established decades ago, made a thrift crisis inevitable. Poorly designed incentive structures strongly encouraged regulators and thrift managers to delay proper action when thrifts became insolvent. The authors present recommendations to prevent a recurrence of the crisis.

Keywords: Deposit insurance; Savings and loan associations;

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Economic Review

Publication Date: 1990

Volume: 76

Issue: Mar

Pages: 3-28