1992 – The savings and loan crisis of the 1980s and 1990s (commonly
dubbed the S&L crisis) was the failure of about 747 out of the 3,234
savings and loan associations in the United States. A savings and loan
or “thrift” is a financial institution that accepts savings deposits and
makes mortgage, car and other personal loans to individual members—a
cooperative venture known in the United Kingdom as a Building Society.
“As of December 31, 1995, RTC estimated that the total cost for
resolving the 747 failed institutions was $87.9 billion.” The remainder
of the bailout was paid for by charges on savings and loan accounts —
which contributed to the large budget deficits of the early 1990s.
The concomitant slowdown in the finance industry and the real estate
market may have been a contributing cause of the 1990–91 economic
recession. Between 1986 and 1991, the number of new homes constructed
per year dropped from 1.8 million to 1 million, which was at the time
the lowest rate since World War II.
No comments:
Post a Comment