Brigham Young University Prelaw Review


Federal Deposit Regulation, American Economy


The savings and loan insolvencies in the late 1980s have had a catastrophic impact upon the American economy. Taxpayers are paying billions of dollars to honor deposit guarantees to customers of defunct savings and loans (S&Ls). Comprehending the S&L failures and their intimate association with governmental regulation requires an examination of the S&Ls' history and the rationale for federal involvement in the banking industry.

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